Mitt Romney, former governor of Massachusetts, and GOP wannabe presidential nominee, has made many assertions claiming a record of creating private sector jobs before he became governor.
However, Marc B. Walpow, a former managing partner at Bain Capital who worked closely with Mitt Romney during his time there had this to say:
“I never thought of what I do for a living as job creation. The primary goal of private equity is to create wealth for your investors.“
Let’s examine Mr. Romney’s job creations claims more closely.
A closer look at Mitt Romney’s job creation record
The Republican presidential contender says he learned about expanding employment during his time heading a private equity firm. But under his leadership, Bain Capital often maximized profits in part by firing workers.
Shortly after Mitt Romney resigned from Bain Capital in 1999 to run the Olympics in Salt Lake City, potential investors received a prospectus touting the extraordinary profits earned by the private equity firm that Romney controlled for 15 years.
During that time, Boston-based Bain acquired more than 115 companies, according to the prospectus. Bain’s estimated annual returns were more than five times that of the Dow Jones Industrial Average in the same period.
Now a front-runner for the Republican presidential nomination, Romney says his Bain experience shows he knows how to create jobs. He often cites Bain’s investment in a little-known office supply store called Staples, which now employs more than 90,000 worldwide.