Mitt Romney claims his experience as a corporate buyout specialist is the reason Americans should elect him: “I know how business works. I know why jobs come and why they go.” But in reality, Romney Economics meant buying out companies, loading them with debt, and sending several into bankruptcy—all while Romney and his partners made millions. Here’s what you need to know about Mitt Romney’s record at Bain Capital:
Job loss: Thousands of middle-class workers were laid off by companies that Romney’s firm invested in and controlled. Click here to read the story of Dade Behring, a medical supplies company that Bain loaded with debt. It went into bankruptcy and nearly 3,000 workers lost their jobs—but Romney and his partners made more than $250 million in profit. And it was the same story with American Pad and Paper, which lost 1,500 jobs while Bain made $100 million.
Bankruptcies: Under Romney, “Bain structured deals so that it was difficult for the firm and its executives to ever really lose,” even if companies took on more and more debt and eventually went bankrupt. Romney and his investors made $400 million from four companies that went bankrupt after taking on debt “to repay Bain investors or to carry out a Bain-led acquisition strategy.” Click here to read the story of one company, GST Steel, that was forced to go bankrupt and lay off 750 workers while Romney and his investors collected $12 million in profits. Stage Stores saw a similar fate, to the tune of 5,794 jobs lost amid $170 million in Bain profits.
Outsourcing: Bain Capital invested heavily in firms that “grew into some of the largest outsourcing and offshoring companies in the world,” making millions off companies that were “pioneers in the practice of shipping work from the United States to overseas call centers and factories” in countries including China and India. Take a look at this map to see where in the world Romney has outsourced and offshored.
Mitt Romney’s experience at Bain Capital was never about creating jobs; it was about making profits for wealthy investors. Those aren’t the values we need in the White House.