The Battle For Jobs

About private equity. After Romney claimed he "knows how to create jobs" because of his experience at Bain, it became a political item. Like with most things that involve money, capitalism, state regulations, greed, laziness and all sorts of other human behavior that can't be regulated, it's, well, complicated.

It's further made absurd given we operate in a faux free-enterprise environment. The prevailing attitude isn't "how can I" it's "what can the state" do.

Those lambasting Romney for having been a PE guy are best to keep in mind that's pretty much what Warren Buffett is.

Whether Bain Capital "creates jobs" or not is the not the point. PE's are not set up for that.

Indeed, people don't get into business to "create jobs." They get into to it to make money. Jobs are just a by-product of risk. It's impossible to tell with any empirical confidence.

In any event, it's not like the alternative is better.

Philosophically, there's much to question. However, it's all perfectly legal.

Here's a discussion on PE.

Here.

Here.

Here.

The last link interestingly asserts:

"Private equity are the cowboys that risk capital to build or rebuild companies. And by doing so they often times create jobs. In fact, without private equity there would be approximately 60 to 70 percent fewer jobs created every year. Furthermore, there would be virtually no new companies created. Therefore, there would be no competition and in short there would be no capitalism."

I can only add about the last bit about virtually no companies being created. Banks sure as hell don't lend to start-ups.

And (gulp) here. Comparing it to the mob is outrageous. I'll remember this the next time they're compared to the government. What? No comparison to the character played by Richard Gere in 'Pretty in Pink?'