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Daily Kos: ‘Job creation’ vs. Romney’s locust capitalism

I highly recommend you read this article by David Waldman. It’s all you need to know about Mitt Romney’s claim at being a so-called “Job Creator.” His tactics remind me of the Danny Devito character in the 1991 movie, “Other People’s Money.”

By David Waldman for Daily Kos Fri Jan 06, 2012 at 06:50 PM PST If you’re looking for something truly “weird” about Republican presidential candidate Willard Romney, take a closer look at the thing he keeps shoving in your face: his supposed business acumen and record as a “job creator.” Why are there so many stories like this one?

Apparently they liked what they saw. Soon after, in October 1993, Bain Capital, co-founded by Mitt Romney, became majority shareholder in a steel mill that had been operating since 1888.

It was a gamble. The old mill, renamed GS Technologies, needed expensive updating, and demand for its products was susceptible to cycles in the mining industry and commodities markets.

Less than a decade later, the mill was padlocked and some 750 people lost their jobs. Workers were denied the severance pay and health insurance they’d been promised, and their pension benefits were cut by as much as $400 (258 pounds) a month.

What’s more, a federal government insurance agency had to pony up $44 million to bail out the company’s underfunded pension plan. Nevertheless, Bain profited on the deal, receiving $12 million on its $8 million initial investment and at least $4.5 million in consulting fees.

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