Don't Bash Romney's Experience, Embrace It

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Published January 11, 2012

| FOXBusiness

Over time, many companies throughout the world accumulate inefficient processes and duplication of efforts. Private equity firms are in the business of finding companies that have inefficiencies.  Their goal is to make an investment in a company and provide working capital to nurture expansion, new product development, or restructuring of the company‚Äôs operations, management, or ownership. 

Sometimes unfortunately, in an effort to go forward, management needs to make tough decisions in regards to laying people off.  This process has been in practice in the United States for well over 100 years and has given rise to better, more efficient companies that have grown to employ tens of thousands of more people than they had previously. 

I am in disbelief and shock that Mitt Romney and Bain Capital have come under attack for, quite frankly, making companies run better -- and all Americans have benefited from this. It is obviously a desperate move by Romney's fellow Republicans to try to turn the tide and momentum from him winning the nomination. Their position holds no merit and is counter-productive to the economic crisis we currently face .

I am and have always been greatly disturbed by those who always want to keep the status quo. We need to challenge all the "sacred cows" that exist in the economy and the government.  If those who object to progress got their way we would still be using candles for lighting in our homes, riding in horse-drawn carriages for transportation and only getting our news from the newspaper. Private equity firms are set up and designed to help companies and individuals progress and become more valuable.

We actually need this type of leadership and experience in the White House. As Romney said, "we need to be lifted up by our desire to succeed, not dragged down by a resentment of success." 

Our country has become a receptacle of wasteful processes and earmarks. We need a leader who can identify these undesirable situations and correct them. If the United States was a corporation, any private equity firm, including Bain Capital, would jump in and start getting rid of repetitive and outright ridiculous programs to make the "company" run better. 

As Mary Meeker, famed analyst  who is currently at Kleiner, Perkins proved in her recent piece, USA, Inc., the United States has a huge potential for growth, but the wasteful programs hold it back.

Attacking Mitt Romney for his success at Bain Capital is very similar to the Occupy Wall Street people attacking the one-percenters for their success. That argument has no substance to it, and neither does attacking private equity firms for making businesses more efficient.

Ed Butowsky is an internationally recognized wealth manager. His upcoming book titled "Are You Committing Financial Suicide?" is expected to be released this spring.

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