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“Unintended Consequences” author Ed Conard on the Obama campaign’s portrayal of Romney and Bain Capital.
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Just defending this new campaign video.
Blasting Bain Capital.
He can tell -- way he acts the -- tall.
He definitely scary thing about the middle class and lower class people -- Romney's philosophy for new business this to take over companies just to get some money -- -- the business no matter what.
But that's his approach to the American economy I can't imagine it being very pretty for the workers.
-- -- -- -- on the lower scale right now wants to work for the middle income.
And it worked their tail off in this country to do it.
And Mitt Romney is in charge I don't know whether you get the opportunity you know.
Are these shows that this election battles gonna get really nasty -- we have ever Connor he's former Bain Capital managing director.
He says the president's campaign for -- -- Is completely wrong is also author of the book unintended consequences and he joins me now also served.
The picture being painted -- this still the vulture capitalists of the eighties is -- working -- during that era.
-- doing asset stripping.
Being vampires sucking company's dry up cash taking eight million to have nine profits consulting -- out of the steel company.
And -- driving the company to bankruptcy what do you think.
Well as -- that's -- business model that would work for very long people wouldn't be lending you money and who wouldn't be selling you companies you certainly wouldn't have investors that's just not the way.
Business works at the -- -- cartoon portrayal business it's unfortunate that we're vilifying business at a time when we need business -- You're saying if this was truly the business now for Bain Capital it would not even exist today at how could it every week we invested in 350 companies.
Over 80% of those companies were successful.
I think they it -- companies grew on average two and a half times faster than the S&P 500.
So they've cherry picked a couple of examples here of places where we really -- -- -- very difficult investments -- bought.
Plants that were already in trouble being sold by.
-- companies -- really worked hard to turn them around we can talk about the specifics of these of.
Why we're talking about the steel industry right in the steel company is the subject at the end was facing dumping from.
Other countries into our markets of cheap steel but setting that aside for a second.
You know a lot of people out there -- folks up here don't like anybody with tin cups going to the government.
In -- or -- you basically being.
Let's say in a nice were hypocritical -- some -- were.
But you know the president for example went to Blackstone a private equity crowd to get donation money but this company to this still company.
That being -- -- went to the US government to get a pension bail out I mean is that ended up plus sign for pain to have that on its record.
Lot 50% of the industry went out of business during that time so I think you're always trying to work hard on behalf -- employees.
And and try to help them as best you can during some difficult times but.
When 50% of is that the industry goes out of business it's it's what are you gonna do.
All right well here's this into any.
We we -- now in the living in a world in the United States where we have two competing visions of what's going to fix the US economy.
The president saying is his way we'll work.
That -- governor Romney has his approach.
What do you make of this.
Well I think that people can look back and think that we're living in the economy the 1950s when we were capitalizing on.
The mass production material goods like cars -- a very large companies state.
Paved roads and build cars and harvest oil from around the world.
Well we just don't live -- -- that economy slowdown in growth individuals were very important.
Individual tax rates didn't matter that much today thirteen people can create a billion dollars of value against -- -- and in two years and we need to go out -- harvests that value.
And so we need much more innovation that we had back then and there's much more important for individual entrepreneurs to participate in the growth -- to a.
Produce the -- I mean this solar I can't say is make like entrepreneurial capitalism itself fault by the way a lot of pension funds -- worker funds invested with.
Private private equities -- true.
Yes sure but -- if you just look at the success of the US going back to the mid 1980s we've added forty million jobs on a base of a hundred million jobs.
Europe and Japan in the 1520%.
Range in the growth rate of the number of employees and we haven't we brought twenty million immigrants into our country educated then.
At their children given their families jobs we put tens of millions of people who work -- short.
Nobody has done more for the middle class and the working -- than the US economy no other high wage economy has done more.
Wait a Bain Capital have basically given the loans to or guarantee the loans to Solyndra.
Well I tell I don't speak for Bain Capital.
I think he's -- dangerous they have the big government in the business of picking winners and losers I mean how politicians police they have no.
This is the wrong place for us to invest K alright Ed -- former managing director of Bain Capital thank you so what's your type as I really fresh.
