You’ll Never Guess Who Profits from Bain Capital



A huge irony was revealed at the end of the 2012 presidential campaign. By way of explanation, Mitt Romney had long been attacked as a rapacious, money-grubbing founder of Bain Capital.

Attendees and speakers at the 2012 Democratic National Convention equated Mr. Romney and his Bain colleagues as cruel, corrupt capitalists.

The vocal Democratic base tried to have us to believe that Mr. Romney would do anything to make an all-mighty dollar at the expense of American workers. They implied that no one since Al Capone has been as been as mean-spirited as the Bain capitalists.

Oh, such disingenuous claims by Mr. Romney’s political opponents.

It now turns out that countless Democrats have used Bain Capital for their personal gains – including many public employee unions – first responders, public-health workers, social workers, and teachers.

Their retirement systems have consigned $1.56 billion to Bain since 2000.

We learn all the insidious details from a study by a global research firm, Prequin, according to a news report, “Look who parks their cash at Bain | New York Post,” on Sept. 1, 2012. Researching private-equity holdings is a specialty of Preqin.

Reporter Deroy Murdock explains how Preqin collected the astonishing information – from Freedom of Information requests, news reports and public documents.

He says Bain has created wealth for numerous public-employee retirement funds:

— Illinois Municipal Retirement Fund ($2.2 million)

— Indiana Public Retirement System ($39.3 million)

— Iowa Public Employees’ Retirement System ($177.1 million)

— The Los Angeles Fire and Police Pension System ($19.5 million)

— Maryland State Retirement and Pension System ($117.5 million)

— Public Employees’ Retirement System of Nevada ($20.3 million)

— State Teachers Retirement System of Ohio ($767.3 million)

— Pennsylvania State Employees’ Retirement System ($231.5 million)

— Employees’ Retirement System of Rhode Island ($25 million)

— San Diego County Employees Retirement Association ($23.5 million)

— Teacher Retirement System of Texas ($122.5 million)

— Tennessee Consolidated Retirement System ($15 million)

Bain benefits universities, too

In citing data from Infrastructure Investor, BuyOuts magazine and S&P Capital IQ, Mr. Murdock provides more eye-opening information. He indicates that many bastions of liberal intellectuals also benefit from Bain.

Institutions of higher learning – from the University of California to the University of Washington – have entrusted $424.6 million with the firm from 1998 to 2008.

For example:

  • Purdue University ($15.9 million)
  • University of California ($225.7 million)
  • University of Michigan ($130 million)
  • University of Virginia ($20 million)
  • University of Washington ($33 million)

Others include: Cornell, Emory, Massachusetts Institute of Technology, Notre Dame, University of Pittsburgh, Columbia, Princeton and Yale universities.

More Bain success stories

“Major, center-left foundations and cultural establishments also have seen their prospects brighten, thanks to Bain Capital. According to the aforementioned sources, such Bain clients have included the Charles Stewart Mott Foundation, the Doris Duke Foundation, the Metropolitan Museum of Art, the Ford Foundation, the Heinz Endowments and the Oprah Winfrey Foundation,” writes Mr. Murdock.

So, he asks this salient question: “Why on Earth would government-union leaders, university presidents and foundation chiefs let Bain oversee their precious assets?”

He cites the explanation from a spokesman for the California State Teachers’ Retirement System:

“The scrutiny generated by a heated election year matters less than the performance the portfolio generates to the fund,” California State Teachers’ Retirement System spokesman Ricardo Duran said in the Aug. 12 Boston Globe. CalSTRS has pumped some $1.25 billion into Bain. Since 1988, Duran says, private-equity companies like Bain have outperformed every other asset class to which CalSTRS has allocated the cash of its 856,360 largely unionized members.”

So it turns out Mr. Obama’s opponents have been misleading us – from public-employees unions to union bosses – all while their deep pockets have been enriched by the savvy oversight of the firm founded by Mr. Romney. Obviously, he’s got an outstanding track record in creating wealth and prosperity.

As for his political opponents: Where’s their moral compass? It’s probably under all their piles of money — thanks to Bain Capital.

From the Coach’s Corner, recommended reading:

“Politics have no relation to morals.”
-Niccolo Machiavelli

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.


6 Nobel Laureates Among 673 Economists Backed Romney’s Economic and Jobs Plan



Nearly lost in all the gutter politics engineered by President Obama and his supporters in the 2012 presidential campaign are two important elements.

That would be meaningful discussions about the issues, and the endorsement by 673 economists.

The impressive endorsements included six Nobel Prize winners of Gov. Romney’s economic and jobs plan.

“We enthusiastically endorse Governor Mitt Romney’s economic plan to create jobs and restore economic growth while returning America to its tradition of economic freedom,” wrote the economists in a statement.

“The plan is based on proven principles: a more contained and less intrusive federal government, a greater reliance on the private sector, a broad expansion of opportunity without government favors for special interests, and respect for the rule of law including the decision-making authority of states and localities,” they added.

The six Nobel laureates:

  • Gary Becker
  • James Buchanan
  • Robert Lucas
  • Robert Mundell
  • Edward Prescott
  • Myron Scholes

Why the endorsement?

The economists predict the Romney plan would result in six achievements:

  1. Reduce marginal tax rates on business and wage incomes and broaden the tax base to increase investment, jobs, and living standards.
  2. End the exploding federal debt by controlling the growth of spending so federal spending does not exceed 20 percent of the economy.
  3. Restructure regulation to end “too big to fail,” improve credit availability to entrepreneurs and small businesses, and increase regulatory accountability, and ensure that all regulations pass rigorous benefit-cost tests.
  4. Improve our Social Security and Medicare programs by reducing their growth to sustainable levels, ensuring their viability over the long term, and protecting those in or near retirement.
  5. Reform our healthcare system to harness market forces and thereby reduce costs and increase quality, empowering patients and doctors, rather than the federal bureaucracy.
  6. Promote energy policies that increase domestic production, enlarge the use of all western hemisphere resources, encourage the use of new technologies, end wasteful subsidies, and rely more on market forces and less on government planners.

“In stark contrast, President Obama has failed to advance policies that promote economic and job growth, focusing instead on increasing the size and scope of the federal government, which increases the debt, requires large tax increases, and burdens business with many new financial and health care regulations,” they explained.

“The result is an anemic economic recovery and high unemployment. His future plans are to double down on the failed policies, which will only prolong slow growth and high unemployment,” they added.

Their complaints about Obama

The economists also fault Mr. Obama for six reasons:

  1. Relied on short-term “stimulus” programs, which provided little sustainable lift to the economy, and enacted and proposed significant tax increases for all Americans.
  2. Offered no plan to reduce federal spending and stop the growth of the debt-to-GDP ratio.
  3. Failed to propose Social Security reform and offered a Medicare proposal that relies on a panel of bureaucrats to set prices, quantities, and qualities of healthcare services.
  4. Favored a large expansion of economic regulation across many sectors, with little regard for proper cost-benefit analysis and with a disturbing degree of favoritism toward special interests.
  5. Enacted health care legislation that centralizes health care decisions and increases the power of the federal bureaucracy to impose one-size-fits-all solutions on patients and doctors, and creates greater incentives for waste.
  6. Favored expansion of one-size-fits-all federal rulemaking, with an erosion of the ability of state and local governments to make decisions appropriate for their particular circumstances.

Instead of campaigning on Mr. Obama’s indefensible economic record, he and his supporters have ostensibly tried to throw smoke screens with a barrage of personal attacks on Mr. Romney – everything from accusing him of being a tax-dodger to a disingenuous innuendo about putting blacks “back in chains.”

Little wonder it’s a tight race sans the 2008 promise of “hope and change.” History shows that in tight contests, the incumbent always loses.

From the Coach’s Corner, see this portal’s economic analyses in the Op Ed section by another economist, Dr. Peter Morici.

Plus, here are related topics:

Now, ObamaCare Consultant Insults Small Businesses – 3rd Surfaced Video — Yet another scandalous video related to the ObamaCare deception has surfaced — this time insulting small businesses. In a newly released video, the ObamaCare architect, MIT Professor Jonathan Gruber, said he wrote tax credits into the ObamaCare bill — purportedly to benefit small businesses because “you gotta say you like small businesses in America or you’re a communist…”

Fiscal Fact-Check: Deficit, Social Security, and Medicare — America’s economic system is in grave danger. Like your personal finances, fiscal discernment in U.S. public policy is important for our economic recovery. A Harvard study reveals that massive U.S. borrowing and spending have wasted trillions of dollars in flawed efforts to stimulate the economy.

Is it Too Much to Ask For Civility and Honesty from Mr. Reid and the Press? — There was an unsubstantiated claim, ostensibly for political reasons, by U.S. Senate Majority Leader Harry Reid (D-Nev.) in the 2012 presidential campaign. He made headlines when he falsely claimed GOP presidential candidate Mitt Romney failed to pay his income taxes for 10 years. It’s reminiscent of McCarthyism and lazy journalism.

“On account of being a democracy and run by the people, we are the only nation in the world that has to keep a government four years, no matter what it does.”

-Will Rogers

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Author Terry Corbell has written innumerable online business-enhancement articles, and is also a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.

Seattle business consultant Terry Corbell provides high-performance management services and strategies.