Vulture capitalism is not free-market capitalism - Ahwatukee Foothills News: Valley And State

default avatar
Welcome to the site! Login or Signup below.
Logout|My Dashboard

Vulture capitalism is not free-market capitalism

Font Size:
Default font size
Larger font size

Posted: Wednesday, January 18, 2012 12:00 pm

Despite their truthful condemnation of Mitt Romney's vulture capitalism, his opponents and the media have ignored the huge taxpayers' subsidies financing this sleazy business.

Romney's Bain Capital 1995 takeover of medical company Dade International illustrates how this process exploits taxpayers and workers.

In six years, Bain loaded Dade with an additional $1.5 billion, tax-deductible debt, which cost taxpayers probably $100 million (at 6 percent interest, 35 percent corporate tax).

Dade's 6,000 workforce remained stable, but 1,700 American jobs were lost to foreigners. Bain extracted $240 million in fees and ultimately drove Dade into bankruptcy, a common fate for Bain acquisitions.

This common feature of Romney's vulture capitalism, huge debt borrowed to pay acquiring firms' fees, cries out for reform.

Debt for initiating, or expanding, enterprise is justified as a tax-deductible expense. But highly leveraged debt used to finance acquirers' fees should not be tax deductible.

Vulture capitalism is not free-market capitalism; it is free-lunch capitalism.

C.W. Griffin

  • Discuss

Facebook on Facebook

Twitter on Twitter


Subscribe to via RSS

RSS Feeds


Uber Car

Ahwatukee Little League 11s win district title

Ahwatukee Little League Minors topped Chandler National North to win the District 13 title.

Despite excessive heat, some residents still active outside

By Jiahui Jia | Cronkite NewsFriday, June 24, 2016PHOENIX — It was 9 a.m. and the temperature had...