Kansas City's GST Steel had been making steel rods for 105 years when Romney and his partners took control in 1993. They cut corners and extracted profit from the business at every turn, placing it deeply in debt. When the company eventually declared bankruptcy, workers not only lost their jobs but were denied their full pensions and health insurance, and the government was forced to step in and provide a bailout.
Teamsters know all about vampire capitalists like Mitt Romney. The executives who drove Hostess into the ground, for example, don't care about managing a healthy, profitable company. They just want to yank as much money as they can out of it before they drive it into the ground and kick the workers to the curb.
Not everyone gets that. Witness this comment below the youtube video:
Bain (and Romney) were not in the business of destroying other businesses. They were in the business of turning failing businesses back into profitable businesses, benefitting investors, employees, and customers. Unfortunately, some businesses ARE too damaged to save, and in that case, you liquidate them and recover what value you can.We like the response:
You may have missed the point. The important information here is that Bain borrowed over a hundred million against the company as soon as they bought it (using very little of their own money) then paid themselves nearly $40 million out of the borrowed $. That debt was heaped on the company and DID contribute to its failure.
