2012 Tuesday: Obama wants the election to be about a topic he doesn’t understand
In Chicago yesterday, President Obama described the essence of his campaign against Mitt Romney. Asked during a press conference about his campaign ads criticizing Romney’s record at Bain Capital in the 1980s and ’90s, Obama disagreed with fellow Democrats’ advice to focus on other issues:
[T]his is not a distraction. This is what this campaign is going to be about — is what is a strategy for us to move this country forward in a way where everybody can succeed?
Well, now. That’s just completely different from every other presidential campaign in history…
Some commentary has focused on what Obama said just before that: his description of the job of president vs. the job of a private equity CEO. And with good reason. There is plenty to address: from his assertion that the president should be involved in helping individual communities plan their economic development, to the obvious conclusion that the job, as he’s described it, is not one he’s done particularly well given the persistent sluggishness of the job market and the economy more broadly.
But what interested me was his summary of private equity:
Now, I think my view of private equity is that it is set up to maximize profits. And that’s a healthy part of the free market. That’s part of the role of a lot of business people. That’s not unique to private equity. And as I think my representatives have said repeatedly, and I will say today, I think there are folks who do good work in that area. And there are times where they identify the capacity for the economy to create new jobs or new industries, but understand that their priority is to maximize profits. And that’s not always going to be good for communities or businesses or workers.
Contra Cory Booker, Harold Ford Jr. and Steve Rattner — who are among the Obama supporters who cautioned him against demonizing private equity — the best reason for Obama to avoid the topic is that he sounds wholly uncomfortable on such foreign terrain.
His dissection of the place of profits in an economy supposedly based on free enterprise comes off like the remarks of an anthropologist recently returned from spending a year among some exotic, savage tribe. But profitability is a concept that comes naturally to most Americans because, unlike Obama, most of us have worked for for-profit enterprises.
Instead, Obama says “maximize profits” as if it’s one element among many when it comes to business (it’s just “part of the role of a lot of business people,” with the others ostensibly at liberty to ignore revenues and expenses), as if he grudgingly acknowledges some possibility that profits can co-exist with a healthy economy.
Wrong. Profits are indispensable to a healthy economy.
If a company is not trying to “maximize profits,” it is not a) trying to satisfy the most customers and thereby earn their business; b) recruiting and retaining the work force needed to deliver appealing products or services; or c) creating or freeing up the capital needed to expand its business.
Oh, and because we know Obama puts a premium on higher tax revenues: “Maximized profits” also mean more earnings for government to tax.
This is the story of America’s economic power. We are not the world’s most important economy, and the most prosperous people, because there are business people for whom “maximizing profits” is not “part of their role.” On the contrary. It’s because the profit motive — and, importantly, the greater freedom from government that our enterprises historically have had to pursue it — has ensured we have gotten the most out of our scarce resources.
Profits are not something to be merely tolerated as long as everything turns out OK for everyone else. They are the best motivation known to man to put as many people and resources as possible to productive work.
And creating new industries, with new jobs, is not incidental to free enterprise. Delivering novel products or services is not the only way to make money, but it is a time-tested way to do so.
This also happens to be the story of Bain Capital. Yes, it invested in businesses that couldn’t be turned around — that is, made profitable — and which had to be closed. But it also found great success in other ventures, some of which still employ tens of thousands of Americans.
Obama wants you to think the exceptions are the rule, at least where Romney and Bain are concerned. In doing so, he betrays his lack of familiarity with the very economy he claims to be trying to shepherd.
– By Kyle Wingfield
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440 comments Add your comment
MarkV
May 23rd, 2012
5:09 pm
The people who do not see leadership in the White House are people who do not want to see.
md
May 23rd, 2012
5:09 pm
“Austerity has failed in Europe.”
Ironically, Germany actually built in austerity measures back in 08 and 09……and guess which economy is doing the best?
Some of you folks don’t do enough reading……..the ones that are being forced into austerity are there for a reason…..they were unable to control themselves when it mattered. Borrowing and spending is what got them in trouble and it will be their death noll as the lenders are about to cut off funding.
Kind of ironic that a socialist group of countries is about to be brought down by it’s weakest members…….which is why socialism ultimately fails…..it takes everybody to participate and that is just a utopian dream.
That Black guy
May 23rd, 2012
5:11 pm
East Lake Ira
May 23rd, 2012
4:14 pm
What a cesspool of racial animus, – Can you point out some of this “.racial animus”? I seem to have missed it.
md
May 23rd, 2012
5:11 pm
“Romney’s business experience is irrelevant to governing the country.”
ALL experience is relevant to running a country…………
Lil' Barry Bailout (Unexpectedly Revised Downward)
May 23rd, 2012
5:22 pm
Is leadership blaming others for your problems and failures?
Is leadership dividing the American citizenry into groups?
Is leadership bragging about doing drugs while imprisoning folks who have done the same?
Is leadership avoiding tough problems, like reducing the deficit or reforming entitlements?
Is leadership criticizing folks who are working to do things you are not?
Obozo is the worst president ever, a failure, and most certainly not a leader.
He’s at best a petulant putz.
Dusty
May 23rd, 2012
5:33 pm
MarkV
My imagination is not so gifted as to see leadership in the WhiteHouse.
You can see leadership even when it is not there. I think that is called blind loyalty. .
Lil' Barry Bailout (Unexpectedly Revised Downward)
May 23rd, 2012
5:34 pm
If you think Obozo is a leader, then you are to be pitied because you’ve never been fortunate enough to have worked with or for a great leader.
Rafe Hollister
May 23rd, 2012
5:38 pm
LBB, well said!
Dusty, you fail to see positive leadership. Oblama does exhibit leadership however. He is leading us all to the poor house.
Tiberius - Banned from Bookman's and proud of it!
May 23rd, 2012
5:40 pm
MarkV, referring to, and actually understanding what was written, are two very different things.
Which is why I suggest you re-read the article until you do understand that any statement claiming austerity failed in Europe is moronic at best.
VBC
May 23rd, 2012
5:43 pm
An economy cannot expant without profits.
ODD OWL
May 23rd, 2012
5:56 pm
Mittens “Mucho Pasos” Romney is a reckless, private equity, cutthroat, vulture capitalist… Any attempts to compare Romney’s experience as a venture capitalist with being President of the United States are oxymorons that are mutually exclusive… Apples and oranges… If Mittens against all the odds, somehow became President, he would sell off all of America’s assets and demand a 33 1/3 % fee for his services… Mitt Romney is the C.O.B. of vulture capitalism and he sit on the top rung of the ladder… Romney spew fecal matter with reckless abandon… As we all know, fecal matter always slide down hill…
MarkV
May 23rd, 2012
6:01 pm
Dusty @5:33 pm: “My imagination is not so gifted as to see leadership in the WhiteHouse.”
I think that is called blind partisanship.
Martin Williams
May 23rd, 2012
6:05 pm
You right Kyle because Obama wants to learn more about how private equity create jobs and how being a head of a private equity firm qualifies you to be the leader of the United States. As a leader of a private equity firm your first priority is to make money/profit for the company and the United States government is NOT a company and CANNOT make profit. Kyle, name me a government in this world that is making profit a every fiscal year and will walk from Georgia to Texas on my beer feet. To make it even easier for you Kyle, name me a profitable State in the United States and I’ll do the same thing.
MarkV
May 23rd, 2012
6:05 pm
Tiberius @5:40 pm: “MarkV, referring to, and actually understanding what was written, are two very different things.”
Understanding what was written is easy. Accepting the bogus numbers and ridiculous conclusions is easy for some ignorants.
Rafe Hollister
May 23rd, 2012
6:06 pm
MarkV
I agree, it takes blind partisanship to find leadership at the WH.
You crack me UP
May 23rd, 2012
6:09 pm
“Which is why I suggest you re-read the article until you do understand that any statement claiming austerity failed in Europe is moronic at best.”
Actually it would depend on which measures were taken in each different country, how long they lasted have lasted, etc.
Granted it is all under the EU umbrella, but a blanket statement either way is “moronic at best”.
Probably mixed results
I Report (-: You Whine )-: mmm, mmmm, mmmmm! Just sayin...
May 23rd, 2012
6:14 pm
“Obama has accepted $92,270 in his last two campaigns from employees of Bain Capital.”
Why, I’ll bet he lost sleep at night.
MarkV
May 23rd, 2012
6:16 pm
It is a great pity that the people in Europe do not read AJC. They would stop protesting and danced in the streets when they learned from Kyle that there was no austerity, that the spending cuts were just figments of their imagination. And all the politicians on both sides of the spectrum could stop their discussions about whether austerity was and is the right course of action, when they learned the same- they have been talking for months and years about something that did not exist – just ask Kyle!
The Fresh Prince of Bill Ayers
May 23rd, 2012
6:16 pm
MarkV
May 23rd, 2012
5:09 pm
The people who do not see leadership in the White House are people who do not want to see
Thanks for the laugh jerk. I just sprayed a rum and coke all over my laptop screen. Leadership? I’ve watched this guy blame blame blame, then can’t even produce a budget worth pi$$ing on even by his own party. His claim to fame is ordering the killing of Osama bin Laden. Wow. What a tough choice. President O’moeba will get drubbed by the centrists who see the real issues, not the Chris Matthews leg hump fest.
The Fresh Prince of Bill Ayers
May 23rd, 2012
6:19 pm
MarkV
May 23rd, 2012
6:16 pm
It is a great pity that the people in Europe do not read AJC. They would stop protesting and danced in the streets when they learned from Kyle that there was no austerity, that the spending cuts were just figments of their imagination.
So the way to grow an economy is deficit spending and entitlements that can’t be sustained. Check Greece, Spain and California. I’ll bet all of you liberals have parents that wish that they left the load that produced you on a crusty sock under the bed.
md
May 23rd, 2012
6:21 pm
“As a leader of a private equity firm your first priority is to make money/profit for the company and the United States government is NOT a company and CANNOT make profit. ”
Except the US gov’t NEEDS private equity to make profit or NEITHER can survive.
The private sector pays for the whole enchilada…..what part of that do you folks on the left not understand…..
MarkV
May 23rd, 2012
6:22 pm
The Fresh Prince of Bill Ayers @6:19 pm
Why do you refer my post when you do not respond to it?
The Fresh Prince of Bill Ayers
May 23rd, 2012
6:24 pm
ODD OWL
May 23rd, 2012
5:56 pm
Mittens “Mucho Pasos” Romney is a reckless, private equity, cutthroat, vulture capitalist…
Hey at least he’s held a job in the private sector. I don’t think that wonderboy could even run a library.
MarkV
May 23rd, 2012
6:25 pm
The Fresh Prince of Bill Ayers @6:16 pm
You should stick to cleaning your sprayed rum and coke. It would make more sense than you writing.
The Fresh Prince of Bill Ayers
May 23rd, 2012
6:28 pm
I want to hear 1 lib in the world come out and say that not having a balanced budget or fiscal responsibility carries no weight, but funding unsustainable deficits in social programs is a better way to run an economy.
The Fresh Prince of Bill Ayers
May 23rd, 2012
6:30 pm
Come on MarkV, if you are so damn smart why don’t you tell me how Greece and Spain are going to get their economies rolling by raising taxes to give benefits to 20 percent unemployment rates. Who is going to pay more taxes??
md
May 23rd, 2012
6:34 pm
I’d like to hear the answer to that one too…..the left throws out all this crap about austerity, but has no clue when it comes to a solution……..who exactly are they going to borrow from to support their spending??
MarkV
May 23rd, 2012
6:35 pm
The Fresh Prince of Bill Ayers @ 6:30 pm
I am smart enough to know that you are unable to understand the point of a post, and instead you dispute ridiculous assertions nobody has made.
The Fresh Prince of Bill Ayers
May 23rd, 2012
6:39 pm
Here is a liberal model of why they think Europe is so great, and what they want for our country.
http://www.cbsnews.com/8301-505245_162-57439913/brown-seeks-business-support-for-tax-hike-proposal/
Businesses are fleeing California in droves because of too high taxes already, and nobody wants entitlements reigned in. So what the libs probably will want soon is a punishing exit tax from any company that pulls their business out of this dump.
The Fresh Prince of Bill Ayers
May 23rd, 2012
6:42 pm
MarkV
May 23rd, 2012
6:35 pm
The Fresh Prince of Bill Ayers @ 6:30 pm
I am smart enough to know that you are unable to understand the point of a post, and instead you dispute ridiculous assertions nobody has made.
Nice tap dance bud, try and save face, but skirt any discussion on a solution for Greece, Spain or Cali…because you can’t accept that governments should only have a finite money to p!$$ away…
MarkV
May 23rd, 2012
6:53 pm
The Fresh Prince of Bill Ayers @6:42 pm:
“Nice tap dance bud, try and save face, but skirt any discussion on a solution for Greece, Spain or Cali…”
Can you give me a single rational reason why I should discuss with you a solution for Greece, Spain or Cali…?
“because you can’t accept that governments should only have a finite money to p!$$ away…”
Did you dream about what I cannot accept?
Tiberius - Banned from Bookman's and proud of it!
May 23rd, 2012
6:55 pm
MarkV isn’t smart enough to realize that cutting the planned increases in spending aren’t considered actual cuts in the real world.
Nor are they considered “austerity”.
JDW
May 23rd, 2012
6:57 pm
@Fresh…”I want to hear 1 lib in the world come out and say that not having a balanced budget or fiscal responsibility”
Actually that was Cheney’s line. However,with the current crop of Republicans he is looking a bit liberal.
MarkV
May 23rd, 2012
6:59 pm
Tiberius@ 6:55 pm: “MarkV isn’t smart enough to realize that cutting the planned increases in spending aren’t considered actual cuts in the real world.”
Another one who does not understand an argument and instead makes up things to have something to write about.
Tiberius - Banned from Bookman's and proud of it!
May 23rd, 2012
7:00 pm
“As a leader of a private equity firm your first priority is to make money/profit for the company and the United States government is NOT a company and CANNOT make profit. ”
Martin Williams, I’d settle for breaking even right now.
And btw, many sates have balanced budget amendments which require them to not run deficits. Why can’t our Federal government at least do that?
Rafe Hollister
May 23rd, 2012
7:00 pm
Hillbilly D
For what this is worth, I thought it a slap at white working class people, but they are about all that is left to be insulted without repercussions.
News tonight was talking about Oblamer being unable to get the Scot/Irish descendant working class in KY, AR, and WVA to buy into his policies, hence their votes for none of the above in the Dem primary. They dubbed this the “Hillybilly Firewall”, an area Oblamer could not penetrate. First time I had heard that expression.
If that expression was turned around to describe those to whom Romney can not seem to get through to, it would be roundly shouted down. Guess it is open season on Hillbillies.
Tiberius - Banned from Bookman's and proud of it!
May 23rd, 2012
7:02 pm
“Another one who does not understand an argument”
You would have to first make an actual argument, MarkV, which of course you never do.
Running away when caught posting stupidity is much more your style.
md
May 23rd, 2012
7:07 pm
“And btw, many sates have balanced budget amendments which require them to not run deficits. Why can’t our Federal government at least do that?”
I’d settle for striving to do that………vs continually presenting budgets with trillion dollar deficits.
ODD OWL
May 23rd, 2012
7:14 pm
Mittens Romney, olympic organizer, Bain Capital head cheese… Romney and the vultures at Bain Capital sit on tree limbs and search for companies in trouble… When Bain capital spotted one, they swooped in, snatched up the company in a hostile takeover, laid off all the workers , cut off their health insurance and pensions… Bain Capital reneged on the companies pensions for retiries.. Bain capital sold off all the companies’ assets and collected huge profits for themselves… Mitt Romney was the failed Governor of a small State… Romney cut taxes on the rich, the economy went into tailspin, unemployment soared… Romney begin cutting and slashing state services.. The reason Mitt Romney did not run for re-election as Governor of Mass. was because his chances of getting re-elected was slim to none…
ODD OWL
May 23rd, 2012
7:16 pm
Ideology is the work of idiots… Republicans are committed idealists…
md
May 23rd, 2012
7:16 pm
“Romney and the vultures at Bain Capital sit on tree limbs and search for companies in trouble…”
Must explain how they started Staples from scratch……along with Sports Authority………
MarkV
May 23rd, 2012
7:20 pm
Tiberius @7:02 pm
As usual, you cover your failure of understanding the argument by insults. Typical for an arrogant bully you are
Tiberius - Banned from Bookman's and proud of it!
May 23rd, 2012
7:26 pm
ODD OWL, you might wish to consult the REAL record at Bain Capital while Romney was at the head. I know it will take using what little brain cells you still have working, but here’s a hint: They were successful in adding or saving jobs and increasing profits in 70% of all engagements.
Not even remotely your misguided scenario, but facts and perspective don’t lie.
Now to Massachusetts. I suspect you have never set foot in that state, or if you have, you haven’t ever paid attention when you did (I lived there and still have family there). Massachusetts is a blue state. A heavily blue state. The entrenchment of agencies and regulations which hinder businesses runs deep in Massachusetts. The legislature was over 90% hard-core Democrats in the House, and 95% in the Senate. He could only get a few things passed that he thought would spur job growth, but there was no way he would ever get comprehensive reforms instituted in Massachusetts with every corrupt Speaker (and yes, the last 3 have all been indicted and two have been convicted) protecting patronage jobs. That he was able to reduce tax rates and offset them with user fees to keep revenues near existing levels was a minor miracle, and shifted the revenue burden to the people who actually used the services.
All-in-all, he had mixed reviews on effectiveness as Governor, but given the hand he was dealt, he didn’t do so badly.
And he balanced his budget each and every year.
That is the REAL Romney record,
Tiberius - Banned from Bookman's and proud of it!
May 23rd, 2012
7:28 pm
Oooooh, I’m a bully!
Can I clip your hair please?
You’re now MaryV sweetheart.
md
May 23rd, 2012
7:29 pm
As for vulture capitalism…..one may want to look into the number of GM bondholders (that got screwed) that were retired employees……..it never seems to make the news.
Real Athens
May 23rd, 2012
7:38 pm
The sitting president knows less than “The Atlanta Journal-Constitution’s 30-something conservative” columnist about running the most powerful country in the world? Or a campaign?
GImme a break.
Tiberius - Banned from Bookman's and proud of it!
May 23rd, 2012
7:54 pm
ODD OWL sure got quiet in a hurry when facts were presented . . . .
snoqualmiefalls
May 23rd, 2012
8:16 pm
Sorry Tibby…. not your son and probably older than you.
As for deflection lets discuss Rev.Wright a very instructive lesson in defamation and deflection, something I notice cons are all about. BTW I’m moving to a Red State, so I guess you could say I will be at home… a Blue dot in the Red Sea.
Tiberius - Banned from Bookman's and proud of it!
May 23rd, 2012
8:20 pm
snoqualmiefalls, you’ve never, ever read a post I’ve made about Rev. Wright, nor will you ever.
I suggest you stick to the actual issue at hand.
@@
May 23rd, 2012
8:26 pm
Oh my!
In so many words, another AJC Blog columnist has posed the question. To which party do blacks owe their freedoms/successes/present standing????
ew
If only he could see the racism within the question.