(CNN) - Jack Welch, the former CEO of GE and a supporter of GOP presidential candidate Mitt Romney, defended Romney's field of private equity in a Wednesday interview on CNN's "Piers Morgan Tonight."
"You take a dead carcass and put oxygen in it, and keep it alive, that's what private equity does," Welch said. "It is a big job creator? No. But does it keep jobs? Yes."
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That's either the stupidest or most dishonest comment I've heard lately. Private equity is simply about investor profits. Any job retention is simply a possible (if improbable) by-product of the process. If cutting jobs increases the investment return it would be unethical of Bain or any other private equity firm to retain those jobs. Saying that private equity firms act out of social altruism is an insult to the theory of the free market.
I don't doubt that some private equity firms have save some jobs. The problem is when they destroyed the companies just to make money, that is the problem that most people have.
Jack Welch is an honest man who understands the real world.
That automatically distances him from democrats...especially 'community organizers'.
Romney has a public record that is terrible, so he touted his private sector job creation. He claimed he created a hundred thousands jobs, then tens of thousands, and finally thousands of jobs. Since Mittens made the claim, any democrat who asks about it is anti capitalist? So Mittens record in the public sector is off limits, and his record in the private sector is also off limits? What is the flip flopping liar hiding?
Jack, needs to get back on his medication.
Private equity infusion or vulture capitalist withdrawal? Get real. For a change.
So he's saying that Romney was NOT a job CREATOR with Bain? How about his record as governor? Not there either you say.... things that make you go hhhmmmm.
Bain Capital took money out of GST Steel... plundered its assets... gutted it... leaving it a shell of its former self... then closed a plant in Kansas City. Bain underfunded GST employee retirement accounts, then left Uncle Sam with the burden of guaranteeing those accounts, to the tune of $44 millon. Did Bain turn a profit? Yes, on it's initial investment of only $5 million, they made $100 million But at the expense of American jobs, and a huge government bailout; essentially Bains profits came out of the pockets of taxpayers and GST workers. Welch is no dummy, he knows the facts. Piers is either a poor interviewer or woefully uniformed. More Wall Street cronies covering each others behinds. When is this going to stop?
Jack , would know !
And online collages are a money maker ! Especially when the tax payer picks up the tab !
For sure companies are there to maximize profits for the shareholders while observing corporate social responsibility. Accusing Bain of making profits is ridiculous!! especially coming from a president who have accepted $3.5 million in campaign donations from private equity executives in 2008, and additional dollars this time around, so it would have been awkward for him not to concede that private equity does "good work." As for the ad's depiction of job destruction, economists at the National Bureau of Economic Research found that firms restructured by private equity suffered net job losses over five years only 1 percent greater than other comparable companies. Dems get over it!! its just shameful rhetoric
Sure, it keeps the CEO's jobs. America, if you vote Republican, all you are doing is voting against you own self-interests, but more importantly, you are giving away the power of the country to foreign owned corporations. Wake up!
Its not just dying companies that they take over but companies that are profitable but "undervalued" in its share price. Several years ago private equity firms tried to takeover Qantas Airlines which was one of the few profitable airlines but had a low share price. The Australian govt refused to change the law that Qantas must have majority Aust ownership, and refused the takeover on the ground that it wasnt in the national interest to sell it overeseas.
This was about 6 months before the GFC and the freezing of lending markets . Everyone involved said if the PE takeover had occured then the high interest costs would have closed Qantas down. But today Qantas is still a profitable airline
From a vulture capitalist like Welch,what do you expect? Mitt McCain can't even get his job creation lie numbers straight. Obama/Biden 2012!
Really? Maybe welch should go back and find out exactly what the sociorobully and bain didi to workers. How can you say that they saved jobs and companies when they actually fired Americans, sent their jobs overseas the bankrupted companies that had been around for decades (I used to work for one of them years ago to find out he bankrupted this company).
He needs to ask the flip flopper why he likes to fire people and, like him, he probably also belive that corporations are people. Another millionaire who made his money from the backs of the low paid workers then he leaves with his millions.
►"It is a big job creator? No. But does it keep jobs? Yes." ◄
Whose job is kept – the investors and top executives while the "peons" are laid off, downgraded or stripped of their incomes and pensions and investments until the company is DONE with them and eventually, they too lose their jobs?
I hate when the media brings BIG PEOPLE in to talk about BIG PEOPLE success in an effort to allow the BIG PEOPLE justify why THEY have succeeded and in the meantime, none of that CRAP trickles down to the LOW CLASS that aided that effort!!
Obama 2012 – The Only Trusted Way Forward!!
Piers defending Obama again. Jack ate his lunch.
No what Private Equity does is to seek make a profit first and foremost. If that means break up a company and selling off its parts it does that. If that means laying off U.S. workers and moving jobs to China or India it does that. It only keeps jobs here in the U.S. if that means it creates the most amount of profit for the Private Equity investors.
It has NOTHING to do with jobs. It has everything to do with getting their pound of flesh and whatever it takes to make sure they make a profit even if it is at the expense of everyone else.