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Sorry, Washington Post, Romney didnít get rich moving U.S. jobs overseas
AEI ^ | June 22,2012 | James Pethokoukis

Posted on 06/22/2012 7:21:21 PM PDT by Hojczyk

Edited on 06/22/2012 8:06:58 PM PDT by Admin Moderator. [history]

In what is meant to be a bombshell political story, the Washington Post is attempting to paint Republican presidential nominee Mitt Romney as a private equity boss who got rich by shipping American jobs overseas.

But the WaPo seems more than a little fuzzy about the basics of how international business works — and the difference between outsourcing and offshoring.

Or maybe this was a story just too politically juicy to properly check.

But whatever the reason, WaPo World’s version of Romney’s business career at Bain Capital may not correspond with reality, via a source familiar with Bain’s activities as well as a detailed analysis of the piece.

Romney Reality: What CSI actually did was provide U.S. software developers with technical support and sales. Example: It provided domestic outsourcing — which is different than overseas offshoring — for call centers and help desks. As far as its international business goes, CSI was reseller of U.S. software in European markets. In other words, they helped distribute U.S. software around the world.

Romney Reality: Those overseas call centers in the WaPo story were based in Europe and Japan, and serviced international customers of U.S. companies in their local languages.

Some more accurate options:

– “Romney’s Bain Capital invested in companies that expanded overseas jobs overseas after he left”

– ”Romney’s Bain Capital invested in companies that had international employees before it bought them”

– “Romney’s Bain Capital invested in companies that created foreign call centers to deal with foreign customers”

And it’s also just bad economics to suggest offshoring is necessarily a job killer. As this study suggests, “Increased globalisation of manufacturing processes does not necessarily imply a hollowing-out of domestic production … Firms that go abroad expand employment at home relative to non-globalizers.”

Bad reporting, it would seem, and bad economics, absolutely, from The Washington Post.


TOPICS: Business/Economy; Crime/Corruption; Front Page News; Politics/Elections
KEYWORDS:

1 posted on 06/22/2012 7:21:27 PM PDT by Hojczyk
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To: Hojczyk

It’s not like this line of idiocy hasn’t been thoroughly covered by the desperately seeking Ron Paul nuts. I guess the White House has gotten out the old memos from the teleprompter, and passed them around the media again.


2 posted on 06/22/2012 7:47:25 PM PDT by pallis
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To: Hojczyk

These Romney critics would not recognize Corporations-101 if it hit them in the noggin. They have never worked in a business which survives by making a profit, much less owned or run a business.


3 posted on 06/22/2012 7:54:10 PM PDT by entropy12 (Hate is the most insidious emotion, it will rot your gut from the inside.)
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To: Hojczyk

Didn’t Jeff Emmelt - Obumo’s job creation buddy - move All of GE’s medical imaging R, D, and production to China? The same GE that got sufficient “green” credits that it paid NO federal taxes last year? Seems to me the GE story is more damning but maybe that’s just me.


4 posted on 06/22/2012 8:45:33 PM PDT by bossmechanic (If all else fails, hit it with a hammer)
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Comment #5 Removed by Moderator

To: Hojczyk

Moving jobs overseas?

Try having the highest corporate tax rates on Earth.


6 posted on 06/22/2012 10:47:39 PM PDT by GeronL (The Right to Life came before the Right to Pursue Happiness)
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To: entropy12
These Romney critics would not recognize Corporations-101 if it hit them in the noggin. They have never worked in a business which survives by making a profit, much less owned or run a business.

Yep - yet they do persist with their lunacy and single-minded hatred. They're more dishonest than they claim him to be.

7 posted on 06/23/2012 3:05:11 AM PDT by trebb ("If a man will not work, he should not eat" From 2 Thes 3)
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To: Hojczyk

Is the Washington Poo still counting America’s war dead, or did that stop when Boosh left office?


8 posted on 06/23/2012 10:48:44 AM PDT by a fool in paradise (The media ignored the 40th anniversary of Bill Ayers' Pentagon bombing but not Watergate. Ask Why.)
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