Somehow Obama's disingenuous attacks on Mitt Romney for his work at Bain Capital back in the day manages to be simultaneously maddening, pathetic, and hilarious. [By the way, Mr. Obama, we all know you are just trying to avoid talking about the painful economy under your watch - you're not fooling anyone.]
That said, these attacks do represent a nice opportunity for discussion about how free markets actually function, and the incredible benefits that can come from free markets and the drive of individuals and groups of personally motivated individuals to create success (not just monetary success, by the way, but many other kinds of success that these individuals are motivated to achieve).
Consider just a few thoughts on this:
(1) Consumers (whether individuals or organizations) look to purchase goods/services at the lowest price still consistent with adequate quality. Businesses that provide adequate quality at a lower price tend to succeed. Aiming for this can, in the short term, sometimes mean cutting jobs that do not contribute efficiently to the company's production of goods and services. But in the long run, if sales go up then the company grows and hires more people.
(2) There is an even greater impact beyond an individual company on whole sectors of the economy and the economy as a whole. Because of competition in a free market, if one company is succeeding, other companies watch and start to copy. This puts downward pressure on prices and upward pressure on quality. This frees up more money of consumers to look for other places to spend their money. Many jobs are created and many people benefit from this process.
Read more about this and how it happened at Bain Capital under Mitt Romney's watch here. It's well worth the read.
Commentary on the political campaigns across America this year, with focus on the 2012 Republican Primary, the 2012 US presidential campaign, as well as the battle for the US Senate and the US House of Representatives in 2012.
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