Lying Liars Tell Lies

So I was really bored and wide awake at 3:30 am so I dropped by Big O Tree blog to see what mischief they were up to today. In addition to the usual hate-spew there was a link to this story by Paul Davidson at Alternet:

How Mitt Romney Got Rich Destroying American Jobs and Promoting Sweatshop Capitalism

Right now, a man whose predatory career has claimed the jobs of countless Americans is trying to wrap himself in the flag and call himself a “job creator” and “wealth creator.”

Does he mean miserable jobs in Chinese factories? Wealth for the 1 percent? Apparently that’s exactly what he means.

Republicans claim that Mitt Romney’s entrepreneurial activities at Bain Capital have been good for Americans. The truth is that Romney has spent his career offshoring and outsourcing American production processes — and associated jobs — to countries like China where human labor is valued in the market at a very low wage rate.

Mitt Romney’s tenure as Bain’s CEO has long linked him to offshoring and outsourcing. Even today, although he is no longer in that position, Romney still makes a nice profit on undertakings done long after he left the day-to-day management of the firm.

Well that doesn’t sound very nice.

But wait! There’s more:

Bain’s engagement in outsourcing under Romney’s leadership can be traced back to at least 1993, when the firm bought into a company called Corporate Software Inc. CSI provided a range of services for hi-tech companies such as Microsoft. One service you’ll be familiar with if you have ever had a computer glitch is the outsourcing of customer support, often through call centers. At first, CSI employed U.S. workers to provide these services, but by the mid-1990s CSI was establishing call centers in other countries.

Then CSI merged with another enterprise to form Stream International Inc. Stream immediately became active in the growing field of overseas calls centers. According to SEC reports filings, Bain was active in running Stream, providing “general executive and management services.”

I thought I’d look up this “Stream International Inc” but when I googled the name I found this in the Washington Post:

Bain’s foray into outsourcing began in 1993 when the private equity firm took a stake in Corporate Software Inc., or CSI, after helping to finance a $93 million buyout of the firm. CSI, which catered to technology companies like Microsoft, provided a range of services including outsourcing of customer support. Initially, CSI employed U.S. workers to provide these services but by the mid-1990s was setting up call centers outside the country.

Two years after Bain invested in the firm, CSI merged with another enterprise to form a new company called Stream International Inc. Stream immediately became active in the growing field of overseas calls centers. Bain was initially a minority shareholder in Stream and was active in running the company, providing “general executive and management services,” according to SEC filings.

Those two paragraphs bear a remarkable similarity to the ones from Mr. Davidson’s article, but he seems to have forgotten to give proper attribution. However, if you look closer you will notice that neither passage states anything about a single American job being destroyed.

“Outsourcing” is a buzzword that merely means “we pay someone else to do it.” It is synonymous with subcontracting. I don’t brew my own beer, I outsource it to Adolph Coors. (Except I don’t drink anymore.) When you outsource it to another country that is called “offshoring.”

If you were to research Stream International Inc. you would discover that they are now called Stream Global Services (Stream) and that they have 50 service centers around the world, including 14 in North America (6 Canada, 8 US). They do this because they provide customer service around the world in numerous different languages.

IOW – They didn’t “offshore” American jobs, they expanded into other countries! The American jobs are still there and new jobs were created elsewhere. That way if you live in Austria you can talk to someone who speaks Austrian. Currently Stream has only three call centers in Asia, including one in India and one in China.

But wait! There’s more!

Bain has gone on with a host of additional offshoring activities since Romney left day-to-day operations. Romney’s enormous wealth is partly derived from a golden handshake package he received when he left the management, which included a share of profits.

In 2006, for example, Bain created the Sensata enterprise, which manufactures sensors and controls for major U.S. automobile companies. Recently, Sensata Technologies has announced plans to close a U.S. plant and outsource 170 jobs to China. Even more astonishing is that Sensata’s U.S. employees are training their Chinese replacements, who have been flown to the U.S. plant by the firm’s management.

As a major investor in Sensata, Romney could gain from any outsourcing move that is likely to cut costs and increase the company’s profits. It is reported that Romney owns at least $7.8 million in eight Bain funds that collectively hold 51 percent of Sensata’s shares.

Even using the date most favorable the the Obama campaign’s claims, Mitt Romney left Bain in 2002. He is no longer involved in the management of that firm. And while it may be true that Romney “owns at least $7.8 million in eight Bain funds that collectively hold 51 percent of Sensata’s shares” that doesn’t tell you how much his total net share in the company is. Mr. Davidson also neglects to mention that Sensata is based in the Netherlands.

Now here is where the article gets really stupid as well as dishonest. Mr. Davidson has presented all of his “evidence” against Romney in the preceding quotes. This is how he proceeds:

What if China built a shoe factory in California that was operated in the same way that factories are run at home? Here’s what it would look like:

(1) Children under 14 would work with their elders more than 60 hours a week.

(2) There would be no occupational safety standards for workers.

(3) The wage would be much less than the U.S. minimum wage.

(4) Workers would not have social security or pension benefits.

(5) The factory would have free-rein to pollute the surrounding environment.

If such a company were built, then the laws of the U.S. would shut it down, thereby preventing the factory from selling any shoes in American markets. Nevertheless, under the banner of “more capitalism please,” Brooks argues that the Americans (especially managers of large corporations?) gain from having open access to cheaper goods from offshoring and outsourcing production to such grotesque factory conditions. He seems to forget entirely why the U.S. outlawed sweatshops and child labor, and introduced social security laws. Hint: it wasn’t to enrich predatory capitalists at the expense of ordinary Americans.

The plea for more Romney-style capitalism would have us abandon our civilized social beliefs in treating all American workers with dignity. If we permitted American entrepreneurs to produce under the same uncivilized and unhealthy factory conditions as those practiced in China, their factories might very well sell cheaper products. But Brooks “more capitalism” is really a rallying cry for more sweatshop jobs, more child labor and more impoverishing of American workers so that offshoring and outsourcing entrepreneurs can make more millions and keep their incomes in offshore banks and out of the hands of the U.S. Internal Revenue Service.

Do you see any facts in there that are connected to anything Mitt Romney has actually done? Let’s go back to that title:

How Mitt Romney Got Rich Destroying American Jobs and Promoting Sweatshop Capitalism

Has the author supported his thesis with facts and logic? Or is he just spreading lies?

You decide.

This entry was posted in Mitt Romney and tagged . Bookmark the permalink.

74 Responses to Lying Liars Tell Lies

  1. DeniseVB says:

    DNC talking points to portray Romney and Evilllllllll, Bad, Bad Man as I read on the other site. And her readers just lap it up. No facts to support her claims or independent thinkers to debate the “other side” of the story. It’s.Just.Not.Allowed.

    • Mary says:

      No mention, of course, that WAPO is now reporting that David Plouffe took a $100,000 speaking fee from a company doing business in Iran.

      $100,000 for a speech??? Who’s the 1% now?

    • dm says:

      Anytime I go there and say anything (about any topic mind you) I am immediately assaulted verbally by one of the resident Ph.D’s…no one there really wants to discuss anything…the only acceptable post is the one that completely agrees with everything ever stated…particularly the “we hate Romney” meme.

      • Oswald says:

        Ph.D – “Piled higher and deeper”

      • cj says:

        If I said I posted once every six months over there, I’d be exagerating, so as an outsider, I try not to comment about the place. However, I will say this, it never really felt very welcoming to me. It seemed that if you crossed some random, arbitrary line, all hell would suddenly reign down on you.

        After the sh*t we went through in 08, I’m done with that kind of crap. A civil debate is fine, but basically, I’m just looking for a sanctuary away from the BOTs where I won’t catch a lot of flak for expressing my opinions and thank god, Crawdad’s fills the bill.

        I don’t know where I’d settle if this place didn’t exist. Maybe Uppity’s. I love John Smart; read him everyday, listen to every radio show. He seems to echo my own political leanings the best, but even over there, the waters are way too rough for me to do anything but lurk.

      • So. Post anyway. It always helps. There’s an audience that doesn’t post, and they do pay attention. Lurkers rule the internet. That’s the real audience.

        • cj says:

          Don’t feel the need to, really. You, John and Tamerlane usually say what I’m thinking anyway so I’d just be redundant. I lost my temper one too many times with the BOTs until I finally realized that a quieter voice suits me better.

    • Oswald says:


      BTW, there’s a rumor going around that we are going to ban people who want to vote for Romney. The person who is starting this rumor knows better. We hardly ever ban people. We *do* moderate them however.

      If you want to vote for a party that is totally into crazy, loves kissing the whip and secretly reads 50 Shades of Gray under the covers, go right ahead. Apparently, there is no amount of greed, hard hearted, mean, selfishness, judgmentalism, ignorance or just plain stupid that will embarrass you. Your inability to remember the past will condemn you.

      Not my problem. It’s the Democrats’ problem and if they don’t know how to deal with it, maybe it’s time they make like a dinosaur and meet with a meteor. I’m of the opinion that the rest of us reasonable, FDR style Democrats have to form our own club and begin the long hard slog back to relevancy.

      But if YOU want to hate the party that fucked you over in 2008 (and it did, noooo doubt about it) by voting for the most looney and dangerous bunch of pseudo- religious conmen since the Ku Klux Klan discovered the whitening power of bleach, knock yourself out. I personally think that any person not making $500+K per year and is still voting Republican should have their head examined but we don’t lock people up for their own safety anymore.

      In other words, the left might have been right about some of you guys in 2008. You are dumber than a box of rocks.


  2. DandyTiger says:

    HIs pants are totally on fire.

  3. angienc says:

    Last night someone posted a link that Romney & the RNC raised $101.3 million in July. Turns out Obama & the DNC raised a mere $75 million.

    Hence, this crap.

  4. votermom says:

    I love how we are supposed to blame our 8.3% unemployment on Mitt Romney.

    • DandyTiger says:

      That’s what they’re doing in a nutshell. The blame everything on Bush hasn’t been working, so it’s Romney’s turn. Who else are you going to blame? 🙂

  5. Nice work deconstructing. They got nothing. Bupkus. Nada. They’re so used to this game plan now, they haven’t even gamed it out. They just look stupid, and not just because the post was likely typed on an iPad.

  6. HELENK says:

    for those who want to follow the mars news

  7. HELENK says:

    lets see Romney owns one investment company and the unemployment of the whole world is his fault.
    backtrack occupies the office of one of the greatest , strongest nations on earth and nothing is his fault.
    have I got that right??

    • jeffhas says:

      Well, I’m not really familiar with Klavan, and some of what he says seems satirically accurate… but, I’m just not going along with the Valerie Plame or Katrina segments; those two incidents WERE scandals.

      Outting a CIA agent is wrong… no matter how ‘deceitful’ someone might decide they or their spouse is (and I’m not riding THAT train either), or how low level or ‘not’ undercover they may be (the RW storyline at the time)… it’s just plain wrong – and most Repubs/Conservative I know agree privately – it is/was not OK.

      Bush WAS president at the time of Katrina, and his administration does have a responsibility to provide quick and competent relief during a disaster. There are some catastrophes that ONLY an apparatus the size of the Federal Government can intervene and provide necessary assistance. Expecting State or local governments to be able to handle something of that magnitude is disingenuous – could they have done more? – probably… but the Federal Government has the broadest scope to provide aid. If the Bush Administration did such a heckuva job, why was the FEMA head removed? More people likely died from the unpreparedness of the Feds…. THAT is a scandal.

      • DM says:

        Or the Katrina response. I have no problem putting the blame with the Democrats for not being prepared, just like Japan with the nuclear reactor, but that doesn’t mean that the government must do everything to respond to the emergency of the people. I don’t feel Bush did that.

      • I had to stop watching at that point, too. It’s one thing to agree on certain policy issues, and on the fact of #ABO, but it’s entirely another to rewrite history like that.

  8. HELENK says:

    even back in 2000 the dems were trying to disqualify the military vote. I did not know this or maybe I just was not paying attention.
    This year the sue Ohio to disqualify military votes.
    There should be such screaming and should an an outcry over this that the walls of congress should be shaking

  9. Poofy speaking has nothing to do with any politics or Islam or Iran or anything right? Cuz only female aides to Hillary are evil and bad right? /s–finance.html

  10. HELENK says:

    in the you can not make this up catagory

    if you or someone you know owns a small business, write and tell us how obama is helping you succeed

  11. DM says:

    And empty seats at the beginning of the games required an investigations. Maybe Romney knew what he was talking about, but the media will never admit it.


    London Olympics an ‘Economic Failure’: Roubini

    “The Olympics are an economic failure as London is totally empty: hotels, restaurants, streets,” Roubini tweeted. “It turns out London is totally empty. A zombie city.”
    “The West End – usually packed on any Saturday night – was an empty waste land last night: barely a soul to be found in theatres, bars, etc,” he said on Twitter. “They pushed most Londoners to escape, they told 2 million to work at home.”
    He blamed U.K. policymakers for scaring citizens and tourists alike in the run-up to the Games.

    more at link

  12. Oswald says:

    Is it just me or does this guy set off anyone else’s gaydar?

  13. DM says:

    If Obama continues not to get all that money, the Democratic Party insiders will abandon him. The Democrats raised $75 million in July, well below Romney and company, again.

  14. HELENK says:

    Romney campaign announces bus tour: 8/11 in Virginia, 8/12 in North Carolina, 8/13 in Florida, 8/14 in Ohio – @mpoindc

    27 mins ago by editor

  15. HELENK says:

    this website is good when you are looking for something that might be archived in the web

  16. DeniseVB says:

    Tinfoil/on …. over at the conservative blogs, they’re most upset McCain is speaking at the RNC convention. Then I thought, who better to introduce Sarah for VP ! /Tinfoil/off

    A lot of big names haven’t made the speakers list, not sure if it’s complete.

  17. Oswald says:

    It’s more accurate with the volume turned off.

    • HELENK says:

      this ad reminds me of watching TV when the Shah of Iran was ousted, There were female Iranian college students shouting how wonderful this was. They were going back to Iran dressed in the burka. My first thought was how could you be so dumb? you are going back to a 7th century way of life. You should know better.
      These women in the ad have to know better and should be a lot more interested in how they or if they marry their husbands are going to be able to have a livable life style in this economy

  18. HELENK says:

    your choice

    Romney who generated millions


    backtrack who wasted trillions

  19. Let’s see… under Obama economy, no job, dwindling bennies, unemployment running out, losing mortgage, impending tax penalties for forced buy of insurance. under Romney, one just might get a job & make some $.

    The interesting part is that as the Obama economy goes on further, people are happy to get ANY job, including “sweatshop jobs” and those that “no American will work”. Then when they’ve had time to gather their strength, they’d fight to extend their worker’s rights. Just like they did about 100 years ago. So I really don’t get how the more of the same Obama economy will do anything to help us other than tie us further to govt dependence.

    Is this Liberal really saying this? Yes, because if you can’t put food on the table & shelter your family … you will sell out any employee right (or societal principle you may have) to get a job & survive. History tells us this repeatedly.

  20. Romney ad in Spanish with a Latino small business owner.

Comments are closed.