Tuesday, November 06, 2012

Mitt Romney Profits From Sensata Workers’ Pain, In China And America « Mercury Rising 鳯女

Mitt Romney Profits From Sensata Workers’ Pain, In China And America « Mercury Rising 鳯女

Bain Capital purchased a sensor manufacturer that makes key components for our automobile supply chain, and named it Sensata. They immediately announced they closing a factory in Freeport, Ill., and sending the manufacturing and jobs to China to save money.

A detailed story, with links, on the closing of the Sensata plant.

Mitt is running on his record as a successful businessman.  And by the end of today,we'll know if that bid was successful [Well, maybe not today, depending on how close it is]. So, if he wins, and tries to bring the same skills to the entire country, what does that mean for us?

Bain Capital makes its money by purchasing companies using "leveraged buyouts" that borrow huge sums using the purchased company's own assets as collateral. They often use part of the borrowed money to immediately pay itself. Bain then cuts costs by doing things like sending jobs to China, cutting wages and manipulating tax rules to cut taxes owed, along with standard big-business practices like consolidating business units, taking advantage of economies of scale not available to smaller competitors, squeezing distribution channels for price cuts, and other practices that bring competitive advantages. Then, after reorganizing the purchased companies Bain "harvests" them for profit

So, his experience isn't in starting up a company, building it from the ground up, gradually adding employees and capacity. His experience is in finding existing companies, buying them, slice and dicing them, then selling off the bits. Skimming cash off the top to split with his partners.  Can anyone tell me how that experience, that background, is going to help our country? The whole country, not just the 1%?
Oh well, we'll soon know. And if Mitt wins, I hope I'm wrong and all the Mitt supporters are right. But I really don't think so.

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