by Nomad
T
here’s an old saying that you can judge a tree but by the fruit it produces. For people it is a case of looking at the actions and not merely by the words. That’s especially true with politicians.
In the Republican party’s presumptive nominee Mitt Romney’s case, if the things he has said can be pretty awful, his past actions are generally far worse. As a corporate head, his treatment of the American worker offers a clear picture of the kind of disdain, or at least, indifference, he harbors for the working class. In July 1994, a Bain-controlled paper company Ampad purchased a Marion Indiana paper plant.
Two years before, Bain Capital saw Ampad as a troubled company in a thriving market, and so, began the process of restructuring, reducing waste and whatever else was needed with aim of taking the company public. In turn, as it had done with many companies, Bain would sell the stock of newly revitalized Ampad at a profit.
This is what equity companies do. They buy companies with problems and after increasing their value, then sell them. There are many ways to boost profits, including cost-cutting, modernizing plants, adding products, expanding into new markets, and acquiring similar companies. It might even require hiring more workers. But that wasn’t the case in Ampad.
