Bain Capital invested in a series of firms that outsourced jobs during the time Mitt Romney was involved with the company. According to a report in the Washington Post, the companies Bain invested in specialized in outsourcing jobs to low-wage countries such as China and India.
Romney has in recent months criticized President Barack Obama for allowing American jobs to be outsourced.
“They’ve been able to put American businesses out of business and kill American jobs,” Romney told workers in February, according to the Post. “If I’m president of the United States, that’s going to end.”
But according to the report, Bain under Romney was involved at the beginning of the trend toward outsourcing, when the process began to accelerate.
Among the companies Bain invested in was Corporate Software, Inc., a company that built overseas call centers for companies like Microsoft.
The Post also reported that Bain encouraged companies it invested in to take advantage of the outsourcing trend.
The Obama campaign ripped Romney’s record, Obama adviser David Axelrod said in a tweet that Bain’s actions under Romney amounted to “breathtaking hypocrisy.” In a conference call with reporters, Axelrod expanded on his statement.
“It’s particularly egregious when you try to repackage yourself as someone who’s going to be tough on countries that you sent jobs to,” Axelrod said.
The Romney campaign tried to limit the damage. Romney spokesperson Andrea Saul said that the report was “fundamentally flawed,” because it “does not differentiate between domestic outsourcing versus offshoring.”
Offshoring jobs does not necessarily mean an American job was lost in the process. It just means that jobs were created overseas, rather than in America.
Saul added, “Mitt Romney spent 25 years in the real world economy so he understands why jobs come and they go.”
The danger for Romney is that this report will convince people that Romney definitely knows how to make jobs go. It also seriously dents Romney’s claims that he created jobs as head of Bain Capital. While Romney undoubtedly created wealth, it becomes hard to argue you have a record of creating jobs when you’ve created them overseas.
Obama evidently agrees; in a speech at Hillsborough Community College in Florida, Obama said, “Tampa, we don’t need an outsourcing pioneer in the Oval Office. We need a President who will fight for American jobs and American manufacturing. And that’s what my plan will do.”
Image Credit: Donkey Hotey
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