Joe the Plumber
Biden vs Welch
V P Joe Biden said that private equity executives and plumbers were equally prepared to be president. Jack Welch, former head of GE, in a Fortune article1 took issue and listed the attributes of such executives as such as Mitt Romney of Bain capital.
Jack’s list included “sophisticated negotiations, strategy development, and a global mind set.” He did not mention how often the first move is to fire people working on longer term program, nor did he mention how often enormous debt is added to the balance sheet to pay special dividends to the private equity executives. These executives are not investing capital, they are extracting capital.
Perhaps the plumbers are better prepared to be president. As their priority will be adding jobs, not extracting capital.
1 Fortune, July 2, 2012 “Why Joe Biden Is Wrong About Private Equity Executives” p. 42.