BloggeRhythms 5/21/2012

It seems to me that the Dem's may have made a critical mistake by attacking Mitt Romney’s career at Bain Capital. And I believe they did it for one of two reasons. Either they’re assuming that most of the public, and especially their own constituents, don’t know what venture capitalists do, or perhaps don’t understand venture capitalism’s function themselves. And that’s why the Dem’s are playing with fire.

Because venture capitalism is all about developing and growing businesses to their maximum potential, thereby increasing productivity and revenue, and most often -creating jobs. All of which are what the nation needs desperately at the moment and the complete reverse of the Dem mantra of regulate, tax and inhibit business success.

Consequently, I believe the best thing the Romney campaign can do for itself is to educate the voting public as to what venture capitalism is, how it works and the boon it is to economic productivity. And that can be done by pointing out in the simplest of terms that venture capitalists invest their funds, support, and skills across a variety of businesses they select for various reasons. And naturally, if and when any of these entities succeed, the capitalists are usually rewarded for their gamble with equity of some sort in the venture. And in that way, significant numbers of new, struggling or undercapitalized entities survive to prosper via this win/win risk-filled approach.

Now certainly, although venture capitalists may be very astute business folks and highly experienced as well, none of them have crystal balls nor can they predict the future with guaranteed accuracy. And that’s why significant numbers of businesses in which they take risks ultimately fail. In fact, as I recall the rate of failure for new businesses in general is somewhere around 80% in their first year of existence. And that’s why many of these aspiring operations indeed do close. However, without the invested capital behind them, they’d have no chance at all.  

And now we come to another point, which may be the most important of all. As mentioned on Fox News Sunday, Paul Ryan, Congressman from Wisconsin pointed out that "What Bain did is they used private capital to try and help struggling businesses. What President Obama's doing is he's gambling with taxpayer money and giving money to corporate contributors like Solyndra, and he's losing taxpayer money." Ryan said this in reference to what he called the "crony capitalism" of taxpayer-backed loans to well-connected firms like Solyndra, the solar panel company that filed for bankruptcy after receiving nearly $530 million in taxpayer loans.

So, as I said at the start today, perhaps the Dem’s should rethink about targeting an opponent who spent his career actually trying to help businesses grow and prosper…because their leader’s done the complete reverse. And if the voting public really does learn the tremendous difference between the ways that these two men think and actually perform, the incumbent hasn’t a chance of reelection.

That’s it for today folks.

 
Adios