If we want a stronger economy, demands for ever increasing compensation by the masses of Production Labor (front-line and near-front-line labor) should drive Merger and Acquisition activity by firms NOT the lust for Profit by a few already rich Investment Bankers.

Bain Capital means Romney concentrated wealth at the expense of Labor – period – there is really no other way to interpret it when Labor accounts for 60% of all expenses of most firms. Sure front-line jobs may have survived his work and in some cases his work may have created jobs but overall him and his ilk did nothing to stave off the continuing erosion of real wages over the life of his career. Look at each and every instance of Bain Capital’s preservation or creation of jobs and you will see that labor was compromised and, in general, unfairly compensated.

In total, his work and success as an investment banker eroded the Countries Aggregate Demand in exchange for enriching himself.

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telliottmbamsc's picture
telliottmbamsc 2 years 30 weeks ago
#1

The whole idea of Investment Bankers providing some type of Darwinian Survival of the Fittest to firms speaks to serving the profit interests of the owners or worse the scavenging Investment Bankers themselves.

This is not always the same as forcing a firm to provide a profit margin reasonably sufficient to incentivize the firm’s continued operation (not continued accumulation of surplus wealth) by its owners while it delivers maximum benefit to the countries economy. You do that by paying the as many of the lowest compensated employees as much as possible…and then some. After which, any residual should be retained within the firm instead of being paid out. Especially if you are going to pay the residual out to the highest paid employees or others for whom the payment could be considered excess wealth.

For 30 some odd years now there has been a complete failure of even making a reasonable attempt at compensating the lowest compensated employees so much as a fair wage. In the meantime, more and more compensation has been going to those who spend an ever lower percentage of their total income back into the economy. As a result the economy stinks, and waiting around until the cumulative wealth and pay of the 99% catch up to a level that reflects reasonably on the amount amassed by the 1% - without their relinquishing any of it - is asinine. It is just not going to happen in our lifetime and the suffering will continue to manifest in social unrest.

telliottmbamsc's picture
telliottmbamsc 2 years 29 weeks ago
#2

If it were not but for the efforts of the Workers the profitable accounting gimmicks cashed in on by Investment Bankers would not have become available.

These “profitable accounting gimmicks” are a byproduct of Labor’s primary production focus and, in most cases involving investment banker involvement, are most emphatically NOT a consequence of any superior skills exhibited by Owners and/or Senior Management. On the contrary, the fact that an investment banker can find profit opportunity in a client situation suggests that Management and Owners have failed to avail themselves of all business skills.

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