The economy created a disappointing 115,000 jobs in April, and the “official” unemployment rate “dropped” to 8.1 percent (from 8.3%) as a result of more Americans leaving the job market altogether. The economic recovery is stalled and does not look to change any time soon. It is appropriate to ask: how did we get here?
After his election, President Obama wasted no time
investing in green energy ventures he confidently predicted would occasion
America’s next “Sputnik moment.” However, just as there were no “shovel ready”
stimulus projects, the green dream was just that. Bankrupt solar company
Solyndra is the poster child for Mr. Obama’s green misadventures, and
representative of the wider wreckage his policies have caused.
In the past several months, the following green companies
– which received state or federal funding guarantees – declared bankruptcy or
laid off hundreds of workers to avoid bankruptcy: Ener1 (renewable energy
storage battery technology components), Abound Solar Manufacturing (solar panels),
Beacon Power (energy storage), Evergreen Solar (solar panels), SpectraWatt
(silicon solar cells), and Solar Trust of America (1,000 megawatt solar plant).
The sheer volume of this waste is astounding. Solyndra
defaulted on a $535 million federal loan guarantee, leaving recession-battered
taxpayers holding the bag. Solar Trust received a $2.1 billion federal loan
guarantee, but last month, the company sought bankruptcy protection in Delaware
after failing to meet a federal Energy Department loan guarantee deadline.
Against this backdrop of waste, crony capitalism and
failure arrives Mr. Obama’s opponent Mitt Romney, who represents something else
entirely: private sector success at Bain Capital. Founded in 1984 by Mr. Romney
and two partners, Bain has risked billions investing in hundreds of companies
across America. No investment was guaranteed to succeed; many did not pan out.
But here’s a very short list of Bain’s more famous successes: AMC
Entertainment, Brookstone, Burger King, Burlington Coat Factory, Clear Channel
Communications (the largest radio network in America), Domino’s Pizza, Dunkin’
Donuts, Guitar Center, Staples, Toys “R” Us, and Warner Music Group.
Thus, if you go to the movie theater, eat a hamburger,
wear a coat, listen to the radio, eat pizza or donuts, play guitar, and buy
printer ink, toys or music albums, you’ve benefitted from Bain Capital and Mr.
Romney’s leadership. Unlike in politics, where results too often play second
fiddle to good intentions, in business, results determine survival. Mr. Romney
survived and thrived at Bain.
The Romney/Bain formula works because it starts from a
different point and produces a different result. Bain risks private capital on
private ventures to create private jobs and private wealth. In contrast, the
Obama/Solyndra formula risks public money on private ventures and creates no
private jobs or (non-union) wealth. And despite the recession, Bain-esque
opportunities presently exist in America, for example the private sector oil
and gas boom that President Obama is simultaneously taking credit for while
attempting to derail.
Beyond Solyndra, President Obama’s energy policy is
characteristic of his failure-first approach. For instance, he has thwarted the
Keystone Pipeline (which would create thousands of good oil jobs) and praised
the virtues of algae (which promises no sure jobs) while attempting to take
credit for the private sector oil boom occurring in places like North Dakota.
This oil shale-rich state boasts the nation’s lowest unemployment rate (3%) as
a result of its booming oil industry. North Dakota represents the Romney/Bain
approach, which is why it has succeeded. Mr. Obama’s silence on this success is
bewildering.
As President Obama kicks off his reelection campaign by
talking about ways to “win the future” through “shared responsibility” and
“shared sacrifice,” it is apparent that despite the clear evidence of what
currently works (oil) and what does not (algae), he cannot or will not own up
to his economic failures. Indeed, when pressed on his administration’s support
for Solyndra, Obama offered a Clinton-esque dodge, “This was not our program,
per se.” This was an outright lie. During a May 2010 visit to Solyndra, Obama
triumphantly proclaimed, “This new factory is the result of [Recovery Act, i.e.
stimulus] loans.” Further, when asked if Solyndra’s failure would cause him to
rethink his support for green technology, Mr. Obama replied, “I’m proud to say
that we’re going to continue to support it.”
In stark contrast, unlike Solyndra, Bain Capital is still
in business and despite the recession, it is poised to invest in companies and
produce jobs as a result. The reason why is simple: the Romney/Bain formula
works; the Obama/Solyndra formula does not.
This November, voters have a clear choice – Solyndra v.
Bain: government failure versus private sector success. No one doubts Mitt
Romney’s ability to turn around ailing entities, and no one believes in Barack
Obama’s ability to do so. And while it’s too late to save Solyndra, the bankruptcy
process through which it traveled presents a useful metaphor. In bankruptcy,
debts are discharged, creditors paid, and viable businesses emerge reorganized,
often under new leadership. November’s election presents voters a similar
opportunity to reject the bad deals made by the Obama Administration,
reorganize America’s leadership, and oust the man responsible for it all, the
Debtor-In-Chief.
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