Romney's Business Experience Does Not Qualify Him For The Presidency

(This caricature of economist & columnist Paul Krugman is by DonkeyHotey.)

There is a feeling among Republicans that the best experience for the presidency is experience in business -- especially in running a business. They tout the many millions of dollars that Romney made for Bain Capital as proof that he would be a good president. I disagree. A president must create jobs, and all Romney has been good at is destroying (or outsourcing) jobs. Pulitzer Prize-winning economist Paul Krugman also disagrees. Here is how he puts it:

Now, the truth is even under the best of circumstances, the case for electing a businessman as president would be very weak. A country is not a company – does any company sell more than 80 percent of what it makes to its own workers, the way America does? — and competitive success in business bears no particular relationship to the principles of macroeconomic policy. So even if Romney were a true captain of industry, a latter-day Andrew Carnegie, this wouldn’t be a strong qualification.

In any case, however, Romney wasn’t that kind of businessman. He didn’t build businesses, he bought and sold them – sometimes restructuring them in ways that added jobs, often in ways that preserved profits but destroyed jobs, and fairly often in ways that extracted money for Bain but killed the business in the process.

And recently the Washington Post added a further piece of information: Bain invested in companies that specialized in helping other companies get rid of employees, either in the United States or overall, by outsourcing work to outside suppliers and offshoring work to other countries.

The Romney camp went ballistic, accusing the Post of confusing outsourcing and offshoring, but this is a pretty pathetic defense. For one thing, there weren’t any actual errors in the article. For another, it’s simply not true, as the Romney people would have you believe, that domestic outsourcing is entirely innocuous. On the contrary, it’s often a way to replace well-paid employees who receive decent health and retirement benefits with low-wage, low-benefit employees at subcontracting firms. That is, it’s still about redistribution from middle-class Americans to a small minority at the top.

Arguably, that’s just business – but it’s not the kind of business that makes you especially want to see Romney as president.

Or put it a different way: Romney wasn’t so much a captain of industry as a captain of deindustrialization, making big profits for his firm (and himself) by helping to dismantle the implicit social contract that used to make America a middle-class society.

So now he proposes bringing the skills and techniques he used in business to the White House. Somehow, I’m not enthusiastic about the prospect.