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Venture vs vulture capitalism.

The recent debate of what constitutes good business pratices and the obligations of an employer is a best a misunderstood thing.

Governor Perry and Newt Gingrich both referenced Governor Romney’s experience at Bain Capital. The language used was not perhaps the best, and if we are honest, it may help Democrats in the general election.

Keep in mind, as I type this, I am a hard core Perry supporter.

The problem is that there is no context to what happens in corperate America - regardless of what type of free enterprise we are discussing. I know, Ive been there personally.

Companies are free to hire and fire who they like.

Companies are for the most part free to do business where ever they like without fear of unjust government hindering.

There are reasonable but important exceptions to these points including preventing child labor, firing people due to descrimination or running a business which dumps toxins into the environment - doing harm to people and the surrounding community.

Productive workers, who put in long hours to support their family, lose their jobs due to cuts made to give the share holders of the company an extra one or two percent of profit.

Leaders doing this may pat themselves in the back and high five each other by beating the quarterly estimate, but lets not mince words, such actions are morally wrong.

This is where the disconnect happens with many people within both the Republican and conservative heirarchy and grass roots level.

To be clear, the government has no right to intercede in such affairs. No law should be made to interject society into a private industry’s internal employment concerns.

Organizational leaders would do best to abide by the motto just because you can do something doesnt mean you should.

To be fair we must note there are cases where hiring decisions bloated organizations and in order to survive cuts must be made. In those instances it is a matter of life and death of the company.

This is what Governor Romney is referencing his experience in Bain Capital.

Some times a company is taken over, trimmed down and then can move forward and grow again. Job cutting is painful but necessary.

Private industry, unlike government, cannot just make up money out of thin air to pay for its services.

Of course that brings us to what matters in the hear and now. We are currently facing is a nanny state in which the government not only tells the business, even small ones, who they can fire and fire and where they can do business.  This is what we should be focusing on during this election cycle. To do other wise is fool hardy and plays into the narrative Democrats want to run on.

This is what we should be motivating us.

Posted by Paul Seale on Wednesday, January 11th, 2012 at 4:00 pm. Filed under Business, economy.

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