“I’m not about to sit here and indict private equity,” Booker added. “If you look at the totality of Bain Capital’s record, they’ve done a lot to support businesses — to grow businesses. And this to me, I’m very uncomfortable.” – Mayor Cory Booker on “Meet the Press” [HuffPost]
THERE GOES Cory’s cred, or what’s left of it after siding with Gov. Christie on education reform.
The problem for Democrats is that he’s not the first to say something like this. Former Obama administration official Steve Rattner defended Bain on “Morning Joe” months ago.
Fair is fair. … But I think these attacks are unfair. I think Mitt Romney, not only had a very successful career throughout business, but Bain Capital is a terrific, first class firm. Managing money mostly for foundations, for endowments, for pension funds on behalf of exactly the people Rick Perry thinks he’s trying to harm, and they had a great record with 80 or 90 investments, all of which made a lot of money for their investors… and he did it in a perfectly honorably, appropriate way. … – Steve Rattner, on “Morning Joe” (comes at around 3:11 in video above) [TM]
It illustrates there’s not much difference between Democrats and Republicans in many things and one in particularly. When it comes to their penchant to excuse big business and big banks, both bend over backward.
It’s not that business or the banks are evil, because capitalism is run by individuals. It’s the deck is stacked in their favor by Congress and the Executive branch, no matter who’s in charge. The big money machine stands as more important in the eyes of today’s politicians, with very few exceptions. This isn’t a false equivalency between Dems and the GOP, but the truth about our political systems that pretends to be looking out for we the people, but really is all about sucking up to the powers in the financial system so they’ll put them in charge.
Political preservation depends on having big business and big banks on your side.
One difference is that there is at least a small coterie of Democrats, including Sen. Sherrod Brown, plus Independent Sen. Bernie Sanders, who do work alone and against the congressional tide on these issues, starting with strengthening Dodd-Frank and crafting a stronger Volker Rule.
Unfortunately, when Republicans get involved their first instinct is to gut or weaken regulations, as well as expand tax advantages for private equity, something Mitt Romney hails as a good thing. This is a fact, so you have to ask yourself why Democrats aren’t making that case on “Meet the Press.” The answer is obvious.
Republicans and most Democrats today think the very wealthy are the “job creators.” It’s what ails this country.
Mitt Romney, who made just over $20 million in investment income in 2010, wasn’t having any of it. During an August 2007 appearance on Kudlow & Company, Romney was asked what he thought of the effort to close the loophole. He wasn’t happy. “I want people to be able to save their money and invest in America’s economy tax-free,” Romney said. “I want to lower taxes. I want to lower marginal rates across the board. I want to lower taxes for corporations,” he told Kudlow.
[...] From 1998 to 2006, private equity and investment firms spent $3 million a year lobbying Congress, according to the Center for Responsive Politics. Bain got into the game in 2007, registering with prominent Washington lobbying firms Public Strategies, Inc. and Akin Gump Strauss Hauer & Feld. To date, Bain has paid some $3 million to these firms to make sure corporate taxes stay low and CEOs remain fat and happy.
… Of course, private equity isn’t the exclusive terrain of one party or the other. As Hacker and Pierson outlined in their book, Sen. Charles Schumer (D-N.Y.) has been one of the carried interest loophole’s most ardent defenders. And as Kosman points out, four of the past eight Treasury secretaries have direct ties to the private equity industry. …