Let me see if I have this right.
I start a widget repair business hiring 20 widget repair folks and an office staff of 4. Because my widget folks are better than other widget folks we get the business and others move on to other endeavors. So according to you I have invested my money, pay a staff of 24 and have created 0 jobs. Is that correct?
That's correct, sir! In the new conservative economics, you are not only credited with the jobs you have personally created -- but you are penalized for the number of competitors' jobs your superior entrepreneurship has wiped out.
We are -- here, at the Institute for a New Conservative Economics -- considering following the lead of progressive youth sports teams across the nation and eliminating the counting of new jobs (or profit and loss) at all. It's just too distressing for the incompetent and unlucky.
That would be affected by whether the other widget folks got replacement jobs and did not end up on unemployment. In the case of the Walmart example, you have to consider that Walmart profits are being sent back to corporate headquarters. If local businesses fail, then the local owners are not paying taxes, and a number of other related economic factors. Cost/benefit analysis is more complicated than your example. Also, it would depend on whether the analysis was for the benefit of the affected community or the economy as a whole. One problem for Walmart is the purchase of so much of their merchandise overseas (China) which affects our entire balance of payments.
Bain Capital began in 1984 . Going from $37 Million in assets to $78Billion 2012
a 2000% incrrease within 28 yrs.Not bad.
Gee i guess Obama is the chioce. 8 million unemployed and a extra $5Trillon of debt in 3 years.
let’s keep bashing our own and the election will surely be lost. Ron Paulwill definitely seek third party status.
You’re not talking about a situation analogous to what PE firms do. When they do a LBO, they’re not starting a company. You’re talking about a startup, which are responsible for the majority of job creation in the US economy.
LBO’s and PE firms buy into existing companies with “misallocated assets” that they can “re-allocate” - namely, to themselves.
On the whole, a recent study makes it sound as tho they’re not all that good at creating jobs:
http://faculty.chicagobooth.edu/steven.davis/pdf/privateequityandemployment.pdf
The summary on job creation is on p. 32.