Wednesday, October 10, 2012
Romney Bashes China On The Campaign Trail Whle Bain Capital Benefits From China's Trade Practices
We learn a lot about the person who wants to be the President of the US from this article. He will say anything to win an election, but he will do almost anything he can to make money. Bain Capital has invested in Chinese firms that are subsidized by the Chinese government. On the campaign trail Romney is critical of those practices, but Bain knows a good investment opportunity when it sees one. If the Chinese government is subsidizing a firm, and it has an 85% cost of labor advantage over American firms, it is a great investment opportunity. When Romney ran Bain Capital, he claimed that investing in China was another example of the wonders that come from free trade. It certainly has been good for Bain Capital and its investors. Money can move anywhere in the world, and investors can benefit from unfair trade practices no matter where they reside. This is one of the marvels of globalization. Investors are no longer dependent upon prosperity in one of the countries in which they may have a home. They are residents of the world when it comes to making money and avoiding taxes in the country of their birth. Romney wraps himself around the American flag on the campaign trail, however. He does not wave the UN flag which many of his supporters despise.