Bankruptcy for Billionaires
Sep 3, 2012
When Bain walks out on its debts, its business as usual.
Is it any coincidence that the first private-equity baron to run for president is proposing something similar? The Ryan plannow largely the Ryan-Romney planis an exercise in walking away. Medicare and Social Security, we are told, are in danger of going bankrupt. Thats because these enterprises wealthy backersi.e, Washington politicianshave chosen not to fund the levels of expenditures promised to Americas rapidly aging population. Rather than raise new funds or reallocate existing resources, Republicans propose to turn Medicare into a voucher program and to consider raising the retirement age for Social Security. Across the country, governors and legislators who repeatedly refused to fund the retirement and health-care benefits promised to state employees are also trying to walk away.
Just like private-equity bosses, political leaders are choosing not to afford financial commitmentsand betting they wont suffer any sanctions as a result.
Bankruptcy Filing by Bain-Owned Firm Shows Inequity of System - Newsweek and The Daily Beast
Sep 3, 2012
When Bain walks out on its debts, its business as usual.
Is it any coincidence that the first private-equity baron to run for president is proposing something similar? The Ryan plannow largely the Ryan-Romney planis an exercise in walking away. Medicare and Social Security, we are told, are in danger of going bankrupt. Thats because these enterprises wealthy backersi.e, Washington politicianshave chosen not to fund the levels of expenditures promised to Americas rapidly aging population. Rather than raise new funds or reallocate existing resources, Republicans propose to turn Medicare into a voucher program and to consider raising the retirement age for Social Security. Across the country, governors and legislators who repeatedly refused to fund the retirement and health-care benefits promised to state employees are also trying to walk away.
Just like private-equity bosses, political leaders are choosing not to afford financial commitmentsand betting they wont suffer any sanctions as a result.
Bankruptcy Filing by Bain-Owned Firm Shows Inequity of System - Newsweek and The Daily Beast