Wednesday, July 4, 2012

Krugman on Romney's business credentials

Paul Krugman's blog today examines the above. First of all he questions that business experience is a qualification for being President, since government is not a business. "Competitive success in business bears no particular relationship to the principles of macroeconomic policy." But given that Romney is touting said business experience in creating jobs Krugman examines the claim. Romney did not build businesses; he bought and sold them. In their restructuring this sometimes created jobs but more often than not did the opposite and bankrupted the businesses.

In addition, a common tactic was to outsource jobs, which may have been offshored or merely transferred elsewhere in the US. Even in the latter case the strategy was to replace well-paid employees receiving good benefits with subcontracted workers getting low pay and little to no benefits because more profit could be made from the latter.

So is this the kind of business model we want in the White House? Where the "the implicit social contract that used to make America a middle-class society" is replaced with further redistribution of wealth to the top 1% like Romney while what was once a great nation degenerates back into a feudal society of indentured servitude? The choice really is that stark and that obvious.

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