“So Mitt the ‘Socialist’ fired employees at Bain in order to put more money in his back pocket under the Trojan Horse of trying to save money for the company.”
Is this truly how people think equity capitalists, or whatever they’re called (corporate raiders, used to be, so as better to picture them as pirates), make money? It’s a lot harder to make a profit firing people and skipping town than you might think. But nevermind that, let me ask whether you think in a perfect world Mitt would prefer downsizing a company or making a company grow? Wouldn’t the latter net him more filthy lucre?
First over paid people, like Mitt, they did not work their way up the company. So they do not understand staffing levels and the technology of the jobs. All they know are numbers. They do not understand with every action there is a reaction.
They usually start off by slowly bleeding the company through lay offs. Over time this leads to skeleton staffs on eventually on every level and work loads, that would not have been an issue in the past, to heavy to get whatever the job is done. Moreover, the slow bleed lets experience walk out the door in order to put another dollar in the back of people like Mitt. Furthermore, then the company starts to lose customers due to lack of resources and service. This is since every employee left is overloaded in work and the company will not hire. Finally, once this happens the company gets into that snowball effect. This is when people like Mitt leave and move to another company to do the same thing all over again. They get in these other companies because all of their friends are on each others board of “Trusties”. This is why you see so many executives on multiple boards. So it's like a fraternity of friends that help out each out. The company then falls to of three things happening. It is either sold off, moves overseas and/or closes it's doors.
See people like Mitt are ONLY looking for short term gain for their personal back pocket instead of long term investment of a company. What they do is have short time financial gain by lays offs, while increasing their own personal salaries, bonus, benefits, etc, and piecing off the company while they rob the company. It's kind of like the Mafia is running the show. They are basically looting they are slowly looting the store from the top. It eventually destroys the company and all the employees in it. Remember since they did not work their way up through the company they have zero loyalty. Perhaps as much loyalty as a Prostitute to a Jon?
Just be glad our Military does not hire MBAs off the street to become Generals. A General must work his way up through the ranks in order to become effective at his job. Companies in the United States for years use to operate like the military and were successful. That was one of the many reasons why the United States was a great job Mecca. Not anymore thanks to people that screw over other people for personal gain. They do not care if they destroy not only the company but the country too.
Not anymore and that is one of the main reasons why our economy is suffering. They had a name for people like Mitt back in the day. They called them Robber Barons. They are basically thugs in Suits with hair cuts and a shave. While they pretend to be for the company all they do is destroy them and destroy people's lives.