05 February, 2012

Let Us Now Praise Private Equity - Reihan Salam - National Review Online

Let Us Now Praise Private Equity - Reihan Salam - National Review Online: The difficult truth that virtually no politician is prepared to acknowledge is that the road to job creation runs through job destruction. Yet it is a truth that workers and voters must understand — and Mitt Romney carries the almost impossible burden of explaining it. The controversy over Bain Capital won’t blow over. The only way forward is to show how his work at Bain contributed to growth, and how the excessive regulation and crony capitalism his fiercest critics advocate is a recipe for stagnation.

In a healthy economy, failing firms fade away, and their assets — including their work forces — get reallocated to more promising ventures.