People that attack Bain show their ignorance of capital investment and prove they have swallowed the demoncrats talking points. Bain helped create thousands of jobs by providing the capital needed to many new companies and other start-ups. One off the top off my head that everyone knows is Staples (today a multi-billion dollar company). Bain invested in them in 1986 and sold their stake in 1989.

People that hate business investment are usually jealous/envious of success.

 

The media got right on the demonetization of Bain capitol ( and any VC they could name ) to try to show how evil Romney was.

Think back, if it was not for the likes of Bain ( kleiner perkins, sequoia, menlo partners, etc ) there would have been nobody funding the start ups in the 90s that lead to the tax revenues that got Clinton to 1 year of a budget surplus ( budget, not what was actually spent ).

So Clinton gets credit for taking in more tax revenue than was planned on being spent, but the guys that funded the companies that created income drive that made the tax revenues are the devil in person....

It gives me a headache at times....

 

Companies like Bain also buy up underperforming companies, strip their assets, load them down with debt and walk away with big profits. They aren't doing it for charity.

It isn't about demonizing profits or success. American companies need to learn patriotic capitalism. I want companies to be successful hiring people here at home instead of China.

 

Of course all small business guys aren't rich. Many are struggling to keep afloat. If you aren't turning a profit, you aren't going to be incurring taxes either.

That said it is BS that big corporations can't make products here and make money if they are making a quality product people want. Most things made in China are cheap junk but some CEO can make an extra buck by sending jobs to China.

Again, simple truth is the myth that corporate taxes and regulations are the only reason companies move production to China is false. It is because of CHEAP labor and dispensible labor. Why pay an American $12/hr for 8 hours when you can hire a Chinese person for $2/day for a 12 hour day? We cannot compete on that scale.

 

These right to work states sell their citizens for less money by crippling unions and thus they usually make less money. Not without a cost though...ever notice that the Red states get back a lot more federal tax dollars than they pay in while blue states pay a lot more in than we get back (with the exception of Texas). Wonder why? Maybe we are subsidizing their healthcare with Medicaid or they make so little they draw food stamps?

I saw a study that showed that each Wal-Mart costs us a fortune in welfare because these people make such a pittance.

 

I have to agree with your last post on outsourcing HOWEVER, the appeal to oversea outsourcing is losing. China is intentionally deflating their dollar value and their wages are going up. The "benefits" of using that country are going away and I completely agree, it's cheap ****. I have actually been trying to buy as much American as possible. Purposely held off on some purchases just to pay a bit more to support our economy. I want to open my own business down the road and I want to keep it as American as possible.

Until Americans mature and realize how in trouble this economy is, we won't get much over here. Pay a bit more, but you fund American labor, tools/equipment, and materials. Obama and other greenies are going to work towards keeping pollution down, so any manufacturing is going to have to been pretty green I would imagine.

 

Unions have "crippled" themselves. Uncompetitive wages coupled with many workers who try to get by doing as little work as possible.

This is just the tip of the iceberg: http://townhall.com/tipsheet/greghen...on_lunch_break

As for Bain, everything they did was legal. They helped much more than you give them credit for K-Mac. Once again, jealousy of those successful in business will get you nowhere.

Have you ever bought anything not made in the USA, Kmac? If so, you support outsourcing. I have explained to you many times the majority of the guilt lies with those in Washington. You're like a broken record. But being that you're in Chicago, I'll forgive you. You've had this BS hammered into your brain since you were a little tyke.

 

Now go to the other half of your question, you seem to have forgotten : regulation.
SMB and piles of new regulations, do you think that might be impacting their ability to make profits ?

Consumers want or consumers can afford to buy ?
Those are 2 different questions. The US consumer has proven over the years, they want the cheap item.
The last time you went looking to buy a phillips screw driver, did you buy the Klein Tools one for 10.00 from a SMB in your neighborhood ?
The majority of US consumers cannot afford to buy a 10.00 screw driver, they get the 2.00 one from walmart, as it does what they need same as the 10.00 one.

Nice supposition here. Might want to do some real research on the topic.

Apple, it would cost them ~ 50.00 more in labor costs to make the iPhones in the US. They choose not to, as the engineering companies in China bend over backwards to help their customer.
< 90 days before the release of the 1st iPhone, Jobs pulled the test unit out of his pocket with his keys, and showed the product managers the scratched screen. He told them to fix it.
The manufacture got the scratch resistant glass, the tools to cut it, the new mounts to test with in production, and told Apple get on a plane, it will be ready for you to work through options when you land. This is public info.

That is a company that has an open system to compete for business, that is not bound by piles regulations, and they have to pay for at least one political officer ( and maybe a few brother in laws ).

BTW : The liberal media did you a disservice yet again, they are not allowed to work 12 hour days in China. Companies get fined if they do that, ask Foxcom,

 

No the government allows free markets to work, vs dictating what labor should be to companies . Just like the late 90s when unemployment was < 6% and McD had to start pay at 15.00 to get positions filled.

Where did you get this at ? IL pays a lot more than they get ?
Maybe IL should be forwarding the payments on to cities as they should be, the money cities have removed as income streams due to IL putting them on the slow (no) pay list ( along with the ~ $9B in unpaid bills they have at the moment). Several cities have not seen the money due to them from the state in 2+ years.

Got a link / info on this study ? I guess no job is better than working at Walmart ?
Chicago is the only one that did not want big box stores, other cities love them for the revenue and jobs they bring in. Sounds like you might be watching the local news too much....

 

I do have a question though. If you buy American, aren't you paying more for the benefits, higher wages etc for the American worker thus making the cost of the product higher? I guess similar to dealership hourly rates: high cost of overhead, staff wages/salaries, and benefits factor into that $100 per hour rate.

 

What companies "like Bain" are you using as fact in this claim ?
Name of the company, and the name of the companies they are loading with their debt and letting fall into bankruptcy.

Explain patriotic capitalism please. I never head of this in an economics class. I have heard the POTUS use this in his speeches. Don't give me Paul Krugman as the source of it either, trying to create an economic principal based upon a fiction book he read as a kid.

 

Don't know if this was asked of someone specific or not, but my answer yes the FTE rate is higher, but the amount of actual labor to build something is not what it was ( on a few items ) in the 70s.
Apple's iPhone has a very little hands on labor to build it ( automated lines ) that the labor costs only go up ~ 50.00 total.

Think plastic injection, how many machines can 1 person watch that are running solo ?

The dealer example looks bad, but that is majority labor involved, and not something you can outsource to China / India, same for construction, and the similar labor intensive products.

The hockey stick in the costs is regulations and litigation. Some in NM and AZ go to mexico for dental and some surgery work, due to the low costs. Thing is, in Mexico, malpractice returned are limited to the cost of the procedure, and that is it. No medical malpractice insurance, so that cost is not passed on to the consumer. Same for electronic medical filing requirements

 

Thanks for replying Steve, I appreciate that. Makes sense, hopefully we can get headed in the right direction.

 

The best example of patriotic capitalism is the case with Weathertech Floor liners. Go to their site and do some research. They realize that shipping jobs today to China or wherever the labor is cheapest is short sighted.

Dave MacNeil might be able to make an extra buck but it isn't sustainable.

As far as my shopping, I try to buy American but it is nearly impossible. I hate going into Wal-Mart but sometimes it's a necessary evil.

We are ultimately going to do more damage to our kids by saving a nickel on socks than the national debt will ever do. We have so few factories today compared to WWII and if we ever had a war effort we would be screwed. Maybe the Chinese will still produce bombs to attack them for us for the right price.

 

http://mobile.bloomberg.com/news/201...ed-losses.html

Here is some good reading on Bain Capital. These guys make nothing. They saddle companies with debt, leave shareholders broke, hurt the pension fund and cost employees their jobs.

Now I am not saying every one of these companies would survive but again they are far from the saints many paint these guys to be.