“In No Mood For Happy Talk”: The Public Wants Outsourcing Of Jobs Stopped
In his latest ‘Public Opinion Snapshot,’ TDS Co-Editor Ruy Teixeira has some very bad news for outsourcing pioneer Mitt Romney and his fellow Republicans who have been so blase about it. “The public is very, very concerned about outsourcing and wants action to mitigate the damage from the practice,” notes Teixeira, explaining:
Let’s start with how heavily the public believes outsourcing contributes to our ongoing economic problems. In a September 2010 NBC/Wall Street Journal poll, 86 percent agreed (including 68 percent who strongly agreed) that U.S. companies outsourcing work to foreign countries is one of the reasons for our struggling economy and unemployment. This was ranked the highest of eight reasons tested in the survey.Similarly, in a December 2010 Allstate/National Journal survey, 67 percent thought outsourcing played a major role in high unemployment, compared to just 28 percent who thought it played a minor role and 4 percent who thought it played no role at all.
And Americans believe somethjing can — and should — be done about it, continues Teixeira:
Not surprisingly, the public wants something done about this problem. In the August 2010 edition of the same survey, 70 percent thought it was either extremely (39 percent) or very (31 percent) important to reduce the number of jobs being outsourced in order to help the U.S. economy recover from the recession.Even more impressive, in the March 2011 Pew Mobility survey, “Keep jobs in America” was ranked first out of 16 possible steps government could take to make sure people don’t fall behind economically. Ninety percent deemed it either one of the most effective steps (59 percent) or a very effective step (31 percent) the government could take.
If the Republicans thought that Romney’s profiteering from outsourcing was not going to be much of an issue, they are in denial. As Teixeira concludes, “These data suggest conservatives’ attempts to portray outsourcing as no big deal and nothing to worry about are doomed to fail. The public is in no mood for happy talk on this one.”
By: Democratic Strategist Staff, July 3, 2012
“Nice Work If You Can Get It”: Why Mitt Romney Likes Firing People
Mitt Romney would prefer for you to recall just one number regarding his record at Bain Capital. That would be 100,000 — the number of jobs that the Republican candidate claims he created during 15 years at the private equity firm.
But now there is a more interesting, plausible and relevant number: $20,000. That’s how much money Romney is estimated to have made from each worker laid off during Bain’s many corporate takeovers.
In fairness, Romney’s goal at Bain was never to create jobs but to reap the biggest returns for their valued investors. Judging by that metric, he did exceedingly well, as even Bill Clinton accidentally admitted when discussing Romney’s “sterling” business career. And of course, Romney’s fortune, estimated somewhere between $190 million and 250 million, attests to that assessment.
But over the course of the Romney’s years at Bain Capital, at least five of the companies he took over eventually went bankrupt, while still rewarding Bain investors handsomely:
• American Pad & Paper: Bain invested $5 million in the Ohio paper company in 1992, and reportedly collected $100 million in dividends on that investment. But AMPAD went bankrupt in 2000, resulting in 385 employees losing their jobs.
• Dade Behring: Bain invested $415 million in a leveraged buyout in 1994, borrowed an additional $421 million, and ultimately walked away with $1.78 billion. Dade filed for bankruptcy in 2002, and laid off 2,000 employees.
• DDI Corporation: Bain reportedly invested $46.3 million in the electronic parts manufacturer 1997, earning $85.5 million in profits plus $10 million more in management fees. When the company went bankrupt several years later, 2,100 workers were laid off.
• GS Industries: In 1993, Bain invested $60 million in the Kansas City steel maker, borrowed a lot of money, and then took $65 million in dividends. But GS eventually went bankrupt in 2002, and 750 workers lost their jobs and pensions.
• Stage Stores: Bain invested $5 million to purchase the Houston-based retailer and took it public in the mid-’90s, reaping $100 million from stock offerings. In 200o, following Romney’s departure from Bain, Stage filed for bankruptcy and 5,795 workers were reportedly dismissed.
While it is true that some of those companies went under after Romney had left Bain, the job growth for which he now seeks credit also occurred after his departure in 1999. But the bankruptcies — and the bust-out scenario that helped Bain to profit anyway — are not news. What AOL’s Daily Finance has contributed to the Bain debate is a simple calculation: Bain Capital booked $1.995 billion in profits from the layoffs of 11,030 workers at various firms. And by that scoring, Romney earned roughly $20,000 himself for each of those fired employees. Nice work if you can get it (or take it away from someone else).
By: Axel Tonconogy, The National Memo, June 15, 2012
“Mouth Open, Brain Dead”: Mitt Romney Looks A ‘Gaffehorse’ In The Mouth
When Republicans propose cuts to essential public services, Democrats generally respond by accusing their GOP opponents of wanting to fire teachers, police officers, and fire fighters.
These public servants are cherished members of their communities. Anyone who would denigrate them must want a dumber, scarier, and more dangerous society. In other words, as the great Admiral Ackbar once said: “It’s a trap!”
Usually Republicans tend to skip over that particular trap, retreating into blather about debt for the grandkids or overbearing union bosses. What they never do is confess to wanting fewer firemen, policemen and teachers, at least not in public—until Mitt Romney came along.
It all began last Friday, when Romney advisers decided that President Obama had blunderingly delivered a gift to them during a White House press conference. “The private sector is doing fine,” the president had said. Of course he meant that the private sector is doing much better than the public sector – not going as far as many, including Business Insider’s Joe Weisenthal, who argue that the private sector actually is doing fine.
Still, Romney’s team practically ignited with glee. They pounced on May’s 69,000 jobs report, although that’s 58,000 more than Bush created on average. (And never mind that economists think Mitt’s plan won’t help and could make things worse.)
So Romney blurted an attack, shouting angrily: ”He says we need more firemen, more policemen, more teachers. Did he not get the message of Wisconsin? The American people did. It’s time for us to cut back on government and help the American people.”
Now we all know that Mitt wants fewer firemen, fewer policemen, fewer teacher. This will help the American people? And this was the lesson of Wisconsin? That’s like being born on third base and thinking the lesson is you hit a triple.
Here are the real lessons of Wisconsin:
- Don’t get outspent 10-to-1
- Start attacking early
- Don’t initiate a recall without a charismatic alternative
- Move to the center
Scott Walker wasn’t only helped by the Citizens United ruling. A loophole in Wisconsin law allowed the challenged governor to raise unlimited donations from individuals. Meanwhile, his Democratic opponent only had two months to raise funds and — despite winning most late-deciding voters — he got creamed. Nearly 20 per cent of Obama supporters voted for Walker simply because they disliked the idea of a recall. And Democrats won at least a symbolic victory by taking back the State Senate.
According to Mitt, however, Wisconsin means people don’t want more firefighters, cops, or teachers — an argument too ridiculous even for Walker to endorse. No, Mitt thinks they want more tax breaks for investment bankers and oil barons.
The Republican candidate answered a “gaffe” with a big, loud GAFFE. The President’s campaign should be very grateful.
By: The National Memo, June 11, 2012, @LOLGOP
“Illogical Reasoning”: Mitt’s Utterly Empty Massachusetts Boasts
The Obama campaign has been criticizing Mitt Romney’s record as Massachusetts governor, and the presumptive Republican nominee is now responding with an ad of his own. Romney certainly has a right (and, from a strategic standpoint, an obligation) to rebut his opponent’s attacks, but the defense he offers is a textbook demonstration of how to make something out of nothing.
The spot makes three specific boasts about Romney’s term as governor, which ran from 2003 to 2007. The first involves job creation:
“As Governor of Massachusetts, Mitt Romney had the best jobs record in a decade.”
That sounds impressive, but look a little closer. In the decade before Romney’s tenure, Massachusetts had three other governors, all Republicans. One of them, Bill Weld, clearly had a better jobs record than him. When Weld came to office in January 1991, the state’s economy really was in a freefall. A major Boston-based bank, the Bank of New England, had just failed and the jobless rate was 7.4 percent and climbing fast. Within a few months it reached 9.7 percent, then began falling as the economy – in the state and nationally – revived. Weld left office at the end of July ’97 (to pursue an ill-fated bid to become ambassador to Mexico) with the jobless rate at just 4.1 percent.
His successor, Paul Cellucci, oversaw a further decline, with the rate plummeting to just above 2 percent in 2000. But the economy began sagging, and the number started to rise again. On April 10, 2001, he resigned to become George W. Bush’s ambassador to Canada. If you use the data from March ’01, Cellucci’s last full month on the job, he left the state with a jobless rate of 3.1 percent. If you use the April ’01 data, the figure was 3.3 percent. Either way, it’s comparable to the 0.9 percent drop that Romney presided over from ’03 to ’07.
The only governor in the decade before Romney’s arrival with a clearly worse jobs record was his immediate successor, Jane Swift, who served as acting governor from April ’01 to January ’03. During that time, unemployment climbed to 5.6 percent, which is where it stood when Romney was sworn-in.
So what Romney’s “best governor in a decade” boast actually means is that he had a better jobs record than Cellucci and Swift. And the reality is that there wasn’t a dramatic difference between his jobs record and Cellucci’s. So really, Romney is just bragging that he was better than Swift, who served less than half a term.
Then there’s this:
“He balanced every budget without raising taxes.”
This is only true in a very literal sense. Romney didn’t raise the income or sales taxes, but his first budget did impose more than $500 million in new fees that directly hit middle class residents. At the time they were enacted, the National Conference of State Legislatures noted that no other state had relied so heavily on fees to balance its books. Not that this is news: Obama’s campaign has been playing up Romney’s fee spree, and his Republican opponents threw it in his face during both of his presidential runs.
The ad’s final claim is that Romney achieved balanced budgets “by bringing parties together to cut through gridlock.” Again, this means a lot less than it sounds like. A balanced budget is required in Massachusetts and the state’s legislature is overwhelmingly Democratic. The only way for Romney to meet his constitutional duties was to sign a balanced budget approved by Democrats.
What Romney is banking on, of course, is that swing voters aren’t aware of this context, or don’t care about it even if they are. His entire strategy depends on economic anxiety leading voters to look for reasons to throw out Obama and to give Romney the benefit of the doubt, even if those reasons aren’t logical. From that standpoint, this ad might work just fine.
By: Steve Kornacki, Salon, June 8, 2012
“Mitt Romney Enjoys Your Pain”: Normal People Don’t Smile About Unemployment
GOP presidential candidate Mitt Romney’s reaction to high unemployment is creepy.
During an interview with CBS reporter Jan Crawford last week, Romney smirked as he mentioned that unemployment has remained above 8 percent for 39 months. Then, as the interview ended, he smirked again after saying President Obama had hoped the Recovery Act would reduce joblessness to 6 percent by now.
Romney is loving high unemployment. Just like the Republican majority in the U.S. House of Representatives that has repeatedly blocked President Obama’s proposals to increase hiring, Romney believes high joblessness is good for the GOP. It’s one thing for a politician to know in his heart of hearts that a calamity for the country may help him achieve his ambitions. It’s another to be so callous as to beam about it on TV.
The nation’s sustained high unemployment disheartens any normal human being. Friday’s report that only 69,000 jobs were created in May was troubling — that is, to anyone who has ever been laid off or had a friend or relative or neighbor who lost a job. They know the feelings of fear, depression and guilt that accompany job loss. They’ve experienced the suffering as job applications are rejected, bills pile up and foreclosure is threatened. Normal people don’t smile about high unemployment; they cringe.
Romney contends he’s the fella to fix those unemployment numbers. But his record as CEO of Bain Capital and governor of Massachusetts provides little evidence of that. The focus of Bain was never job creation. It was money making. And if making money meant destroying jobs, that’s what Bain did.
An analysis by the Wall Street Journal of the companies Bain bought in the 15 years Romney ran it found that 22 percent went bankrupt or closed within eight years. That’s untold thousands of workers who lost their jobs and untold thousands of Bain creditors who endured losses because of bad Bain business practices.
Romney has frequently contended Bain created 100,000 jobs while he led it. The Washington Post fact checker awarded that claim three Pinocchios. After Republican rivals Newt Gingrich and Rick Perry chanted, “show us the jobs,” Romney lowered the number. Kinda significantly. Down to tens of thousands of jobs. Finally, Romney cut the figure even further, releasing a campaign video saying he’d created “thousands of jobs.”
If “thousands” is true, that’s good. But, frankly, “thousands” over 15 years is hardly a bragging point for a candidate who contends his private sector experience will enable him to create the millions of jobs the nation needs.
Romney’s job generation as governor of Massachusetts doesn’t instill much confidence in his ability to perform on the national level either. Massachusetts added 45,800 jobs in the four years he was governor. While that’s positive, it occurred during a time of economic expansion nationally, not during the grave recession President Obama inherited.
In addition, Massachusetts’ net jobs growth declined to 1.4 percent during Romney’s governorship, significantly lower than the 5.8 percent growth in the rest of the nation. In fact, Massachusetts dropped to 47th for job growth during Romney’s reign, far lower than during his predecessor’s time.
Romney claimed at one point during the campaign that he was unemployed, and laughed about it. But this quarter billionaire doesn’t have a clue what it’s like to really be jobless or desperate. This is the silver-spoon son of a car company executive, a man who attended exclusive private schools, a man who handed his own son $10 million to help start his business, a man who has a car elevator in his $9 million California beach house.
This is a candidate who mocked NASCAR fans for wearing cheap rain slickers while his wife wears $1,000 silk t-shirts. This is an owner of three homes valued at a total of $20 million who opposed helping underwater homeowners, saying the foreclosure crisis should “run its course and hit bottom.”
This is a man who actually said he likes to fire people. Not hire people. Fire people. Here’s what he said:
“I like being able to fire people who provide services to me.”
The slow jobs growth in May is not surprising, frankly, considering the economic contraction occurring in Europe and even in China. In the 17-nation Eurozone, unemployment now has risen to a record 11 percent, far higher than in the United States where Obama’s Recovery Act prevented the country from falling off the cliff into another Great Depression.
Unlike the United States and China, both of which invested in stimulus, Europe chose austerity. Greece, Spain, Italy, Ireland and Great Britain now are suffering economic contraction and distress caused by austerity.
That’s what Romney and the Republicans propose for America. Austerity. Job contraction. Recession. Suffering.
It’s not true what Romney says about Americans. They aren’t jealous of his wealth. They don’t care that he and his wife ride $100,000 horses. They just want to be able to afford a rocking horse for their kid. They don’t care about the Romneys’ vacations in France. They just want to be able to save enough to get the kids a season pass to the municipal pool.
They don’t, however, want their country run by a guy who can’t conceive what it’s like to be unemployed and has made no effort to find out. They don’t want to be led by a guy who likes firing people. They don’t want a president who finds enjoyment in high unemployment.
BY: Leo W. Gerard, The Huffington Post, June 4, 2012
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