Romney and Bain Capital: the Obama campaign’s newest ad put in context


Jim Campbell, Citizen Journalist

The claim that Romney helped create more than 100,000 jobs is difficult to prove. The campaign has said the figure comes from current statistics on three companies that Romney helped start or expand — Staples (89,000 jobs), Sports Authority (15,000 jobs) and Domino’s (7,900 jobs). However, the companies themselves, as opposed to Romney and Bain, may be responsible for the actual job creation since Bain’s initial investment.

For the sake of argument let’s cut the number in half.  Obama has created no new net jobs with the exception of growing the government. 

By

“It makes me angry. Those guys were all rich. They all had more money than they would ever spend, yet they did not have money to take care of the very people who made the money for them.”

— Former steel worker Joe Soptic, in a new Obama campaign ad on Mitt Romney’s business record

Anyone who watches the pro-Obama videos of the workers who suffered can’t help but be moved.

But Romney and his supporters point to the other side of the story – the many successful companies that Bain Capital helped get off the ground.

Tens of thousands of people are now employed by those companies, including Sports Authority, Staples, Domino’s Pizza and Bright Horizons, a child care company.

His frequently quoted number of creating 100,000 in new jobs has not been substantiated.  (More below)

It’s no surprise that the Obama campaign chose the story of GS Industries for its first television ad attacking Mitt Romney’s record at Bain Capital.

Unlike some of the tales of job-killing and factory-closings that were thrown at Romney during the GOP primaries, this is a relatively straightforward story: The initial investment in the steel company was made in 1993 by Bain under Romney’s leadership, and the company took on hundreds of millions of dollars in debt while paying Bain investors millions of dollars in dividends.

Romney was no longer actively managing Bain when the steel company filed for bankruptcy protection in 2001 and closed its Kansas City plant, causing more than 700 workers to lose their jobs and health insurance, as well as part of their pensions. (More on that below.)

Using just the voices of angry former workers at the company, the ad is less about Romney’s business record and more about his values.

Romney is described by the workers as “a vampire” who destroyed people’s lives while seeking to make as much money as possible. “If he going to run the country the way he ran our business, I wouldn’t want him there,” one worker says. “He would be so out of touch with the average person in this country.” Ouch.

GS Industries has also been a tempting target for Romney’s GOP rivals. In January, Texas Gov. Rick Perry mentioned it as an example of Romney being a “vulture” capitalist. The opposition research done by Sen. John McCain’s campaign in 2008 also highlighted GSI.

As usual in campaign ads, some important context is missing. Let’s fill in some of the blanks.  There is also a longer, six-minute version for a Web site called romneyeconomics.com, but we will focus on the two-minute version airing in battleground states.

The Facts

First of all, the investment was one of many done by Bain under Romney’s leadership, which the Wall Street Journal documented was a record mainly of success, not failure. The Romney campaign immediately countered the Obama ad with a Web ad focused on Bain’s successful investment in Steel Dynamics, featuring interviews with happy steel workers.

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One response to “Romney and Bain Capital: the Obama campaign’s newest ad put in context

  1. The Obama Regime is the most lying and duplicitous Regime that the USA has ever had to live through, and it would go no where if the so-called Free Press and Media were not promoting The Lies and Propaganda being Spewed By Obama and his Tele-Prompeter Speech Writers.

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