Thursday, September 13, 2012

Mitt Romney Outlines How His Private Equity Experience Will Cause Him to Govern

Be Afraid, Be Very Afraid

The Wall Street Journal is in full force editorial mode to support the candidacy of Mitt Romney.  The Journal has apparently forgotten its earlier misgivings and is now directing every available editorial resource towards the election of Mr. Romney.  This consists of (A) giving Mr. Romney advice on how to campaign since theWSJ apparently feels he doesn’t know how to do that and (B) turning over the editorial pages to Mr. Romney so he can brag about his credential.

There are two interesting aspects to Mr. Romney’s piece.  The first is his continued resistance to providing any kind of specificity.  For example here is Mr. Romney on health care and other problems.

My presidency would make it easier for entrepreneurs and small businesses to get the investment dollars they need to grow, by reducing and simplifying taxes; replacing Obamacare with real health-care reform that contains costs and improves care; and by stemming the flood of new regulations that are tying small businesses in knots.

Notice the total lack of any concrete ideas or actions.  But the really interesting thing in the pontifical piece is how Mr. Romney will use an ideas he learned in business to manage government.

 For example, at Bain Capital we bought Accuride, a company that made truck rims and wheels, because we saw untapped potential there. We instituted performance bonuses for the management team, which had a dramatic impact. The managers made the plants more productive, and the company started growing, adding 300 jobs while Bain was involved. 

And since Mr. Romney refuses (again) to provide any specifics on how this would work in government, we thought we’d put forth a few examples.  Here’s what might happen with Mr. Romney and his incentive program.

Dissenting Justice
Callahan - Appointed
by George W. Bush
What- You Expected
Something Different?
President Romney announced today that 274 employees of the Agriculture department were awarded bonuses for cutting the cost of nutrition programs.  The employees succeeded in removing 163,000 eligible women and children from the program by instituting onerous burdens for obtaining benefits.  The President praised the employees for putting cost cutting ahead of nutrition for low income families.
President Romney announced today that bonuses of $14,000 each were awarded to 116 employees of the EPA for ignoring pollution violations.  The President noted that by ignoring massive environmental damage by 17 companies who were in violation of clean water regulations that employees insured that the companies combined profit was over $11.2 billion.  Further savings were incurred when the government refused to do any clean up work or compensate victims of the pollution.  “Regulations kill jobs” the President said, and added “Pollution never harmed anyone”.
President Romney announced today that bonuses would be paid to 92 federal prosecutors who have jailed accused criminals indefinitely without a trial.  “By eliminating costly trials of obviously guilty criminals these heroic government employees saved tens of millions of taxpayer funds” the President said.  He also praised the employees for contracting with private prison firms to house the unconvicted felons, saying that even though there was government prison space available America was built on free enterprise and that increasing profits for private prisons was the right policy.
President Romney announced today that bonuses would be paid to 193 employees of the Medicare program who denied expensive life saving care to Medicare program beneficiaries.  The President noted that health care costs are huge for complex health issues and that those denied care were eventually going to die anyway.  Mr. Romney said that the employees showed great initiative by copying private health care practices to put in place for government programs. 

Okay, that specific enough for everyone?


  1. Here's what experience in business does -- it brings to the surface a leader who can and will make critical decisions on a timely basis for the survival and growth of an organization; as opposed to a politician who cut his teeth as a community orgainzer -- someone who cannot make decisions, typically voted "present" on legislation, is timid on taking action, leads from behind, and developed no understanding of American economics.

  2. Love it, TDPE! Odd how I have several small businesses and I haven't seen one onerous regulation tying me into knots. I just don't understand why the evil, repressive, freedom hating, tyrannical government continues to allow me to operate and open new businesses? I opened one in June and another now, and in another city. Why are they not harming and hurting me, to speak nothing of trying to destroy my capitalist businesses? Why is this evil monster called Obama not destroying me?

  3. Woody, please keep commenting here.

    "Here's what experience in business does -- it brings to the surface a leader who can and will make critical decisions on a timely basis"

    You're talking about Mitt Romney, right? The guy who can't make a decision about anything, except to change his mind about previous decisions? The guy who has released no economic plans whatsoever? The guy who causes his team to go into damage control every time he opens his mouth?

    "as opposed to a politician who cut his teeth as a community organizer"

    People who don't like Obama keep harping on the "community organizer" thing, as if "community organizer" is code for something evil (Communist, maybe)? But that would be too simplistic, right?

    "someone who cannot make decisions"

    Except for all the decisions that he actually made, which were all bad, right? Except maybe that whole killing bin Laden thing.

    "is timid on taking action"

    See above

    "leads from behind"

    As opposed to committing American soldiers to endless years of fruitless warfare?

    "and developed no understanding of American economics"

    Hilarious! Please keep reading this site, it is devoted to using actual facts and logic to show that what you just wrote is 100% the opposite of truth.

  4. Love the post Rich. For some reason, as I read Woody's comment, all I could think was, this sure sounds a lot like partisan talking points, sans any facts, examples, citations, etc. Sweet Zeus this country is so stupid!

  5. Rich, responses to phony attacks by Obama and the left-wing media doesn't constitute damage control - it constitutes correcting lies and misdirections. Same with my responses to you.

    Anonymous, if you aren't bogged down by government regulations, then you aren't following them.

    As an example of how small businesses can be affected by regulations, I prepare tax returns for a living and now will have to spend substantially more time on business returns this year because of an IRS interpretation of what constitutes a repair vs. capital improvement, and that will require filing for change in accounting methods and trying to figure component depreciation on current fixed assets that are sold...and my small business clients will have to pay more for this. And, for what? Nothing.

    Also, I just loved having to pay a fee to the IRS to prepare tax returns when they should be thanking me for helping to keep people in compliance.

    You just don't know a tenth of it.