The Bain Capital Lie
It was a topic most Americans were sorely ignorant about and yet, driven into a frenzy over, Bain Capital. It probably sunk Mitt Romney more than any other issue. People saw past his Mormon cultism. People overlooked his tremendous personal wealth, which Democrats always try and say is a bad thing. People even overlooked his Romneycare, since Obamacare is already passed and threatens to turn this country into a 3rd world nation.
All of those claims were able to be ignored, but the Bain Capital issue was even brought up the day before the election. But, when one does a bit of research, they find that Bain Capital is not an inherently evil company.
Let’s compare it to a real life scenario:
- a person doesn’t work their 40 hours for 2 weeks and take home half the paycheck they normally get
- they cannot afford the bills they have
- the bill collectors start calling, due to not receiving payment
- the person goes to a bank, who refuses to give them a personal loan
- the person then goes to a payday loan place that lends them the money, but gives them a very high interest rate
- the person pays their bills
- the person is again short on their paycheck
- the payday loan place start repossessing the person’s items
- the person curses the payday loan place and tries to get them shut down or take some other action against them
Now in this scenario we have two things: regular retail banks refusing to loan to the person; a lender of last resort lends money to the person; the person agreeing to take money from the lender of last resort. The real life scenario concludes with the person being against the payday loan place.
This is exactly what Bain Capital does. They were a lender of “last resort”. They invested in distressed companies with potential. They were not the regular retail investment firm. Without Bain Capital, all the firms that agreed to take investment money from them would have collapsed.
Here’s the rub. The media and the president love to play a what if scenario that never would have happened. They say “if Bain Capital had not invested in these companies, they would have still been in business and people would not have lost their jobs.”
The reality is these companies were in distress to begin with. That means they were due to close. Without an infusion from Bain Capital, the company would not have stayed open as long as they had.
The media plays upon the ignorance of the population. Stop being ignorant. If someone in the media points an accusing finger at someone else, take that as a warning sign that whatever is about to come out of their mouth, is a lie. That goes for both Democrats and Republican founded media.
With the internet at your disposal, you have only yourself to blame when you’re played for a fool.