An MMT site bringing you dogma-free economics without the pleadings of self interest
Thursday, August 16, 2012
Linda Beale — Romney's Private Equity Magic Trick--equity manager's gain, taxpayers' losses
Romney touts his "business experience in the private sector" as the way to redesign economic policy. Beale shows how private equity companies like Bain Capital extract rent without adding anything to productive contribution. The "productivity increase" comes from downsizing and outsourcing, and the creative uses of debt results in lower taxes due tro the interest deduction. Romney administration = crony capitalism?