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1
Venture Vulture
Debate Score:3
Arguments:2
Total Votes:3
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 Venture (1)
 
 Vulture (1)

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Venture Capitalism or Vulture Capitalism

Mitt Romney has been described recently in both positive and negative terms in regards to his tenure at Bain Capital. Did Romney's+Bain's actions help or hurt the workforce?

 

 

Venture

Side Score: 2
VS.

Vulture

Side Score: 1
2 points

Let me describe a hypothetical situation: Person A uses borrowed money to take over Company B. Company B is heading towards bankruptcy, and all of Company B's workers are in risk of losing their jobs. Person A works to turn Company B around. Person A consolidates operations, closes down some of Company B's locations, lays off some workers, and cuts wages to remaining workers. Now, Company B is turning a profit, providing job security to the remaining workers.

This situation describes Romney's work at Bain Capital. Sometimes jobs were cut, sometimes pay was cut, but the vast majority of the time, revenues and profits increased. Companies that were heading for or starting bankruptcy were saved. I assert that Romney's actions helped the workforce tremendously, as it is better to save 80% of jobs in a company than to lose them all.

Before any Anti-Romney people start rebutting, consider this. This situation also describes the auto bailout. GM was saved with government money(taxpayer funds). Operations were consolidated, plants were closed, jobs lost, and wages cut. Yet now, GM is profitable. Ironically, I hear people demonizing Mitt Romney for turning around companies while praising Obama(or Bush, or both) for saving the US auto industry.

It is fairly clear that if a company is failing, it's a good thing for someone to step in and turn things around. Sometimes it's like surgery. It hurts, and it takes time to recover, but it's better than dying.

Side: Venture
1 point

COMMUNISM will rule the scum who protect imperiakism! ...........................................

Side: Vulture