This Sunday on ABC’s This Week, George Will said the following about Romney:
WILL: I think they do both. But they probably, on balance, immunize him more. It’s been 70 years, George, since Joseph Schumpeter, a famous Austrian economist then at Harvard, put into our vocabulary the phrase “creative destruction.” American people are clear that capitalism destroys jobs on occasion.
Actually Mr. Will, Karl Marx first used the term to describe the cannibalistic nature of capitalism. Then, your Austrian friends white washed the term to describe a rebirth. I am not an economist, but unlike the Federal Reserve governors, I saw the economic collapse coming. Where George WIll and Romney see creative destruction making room for new companies, I see that society is left with the people and the things destroyed. Same with the American people, they know that jobs will be lost, but they need and want some kind of help from the nation when that destruction takes place. In fact, sometimes, if not often times, the Romney style “creative destruction” did not take place because of some up coming new idea, it happened because there was money to be made in simple “destruction”. The creative element was not part of the Romney equation.
Romney, the “creative destructor” moved to find another body to destroy. The destruction, the unemployed and the empty factories then became a social responsibility. Picking off the carcasses of dying companies, or even viable companies, simply to nourish portfolios from the transaction of the kill has negative outcomes that are never considered in the cost of the Romney style transaction. The negative social outcomes are then left to the individuals and the communities that were effected to manage. Will and Romney tell us that wait, the public funds, like a Canadian Teachers Union Retirement fund benefited. Well if they did, that was just as bad and they should have had policies to not invest in such transactions. There are socially responsible policies that do not rely on such outcomes.
Romney claims that this expertise, the “creative destruction” niche, gives him the expertise to manage the economy. Well, if you consider that the economy has been savaged and is on the brink of more catastrophe, why, would we hand it off to an expert in “creative destruction”? There are other capitalists, such as venture capitalists, who invested and financed new companies and new ideas. Romney was not a “work out genius”, nor did he have a keen eye for new ideas that would take economic sectors out of the “creative destruction” phase. Now he claims that he has the skills, the knowledge and the credibility to fix the “creative destruction” remnants.
Romney, was good at what he did. In fact at Bain he was very good at “creative destruction”. As far as I can tell, these are not the skills we need to serve the nation and the people. Capitalism may be fueled on “creative destruction”, but nations are not. Nations are populated and serve all the people, not just the segments that are growing and or have potential. Nations have to serve the people who were creatively destroyed because frankly, the markets never look back. Romney has never served or cared for the communities or the people he “creatively destroyed”. Wrong man for the wrong job.
Is America going to be his last project in his “creative destructor” career? Creative destruction has negative outcomes and consequences. Romney never paid attention only to the outcomes that served him and his company. Let me put it kindly, or in the language he would understand: ” Mr. Romney, you are the wrong fit for the position of President of the United States”.
The picture is from my garden. The leaves fall, I gather them . They go into the tomato cages. By summer I will have some mulch for the new plants. Creative destruction at work in the garden and in nature. Not the same idea in Bain style capitalism.