Most people over the age of twenty have realized that Social Security will not be there when they retire. Many of the younger generation have already been planning for this by setting up 401K plans, IRA’s and other ways to finance their retirement. One important aspect of this planning is choosing a competent financial advisor. As the presidential election approaches, who would you choose are your financial advisor–Barack Obama or Mitt Romney.
Marc Thiessen at the Washington Post posted some information last week that might make that choice easier. In recent days the President has been attacking Mitt Romney’s record at Bain Capital, stating that it is a record of wealth creation–not job growth. Keep in mind that Bain Capital works with money volutarily put under their control by investors who invest in the company in order to make money. When the investors make money, they spend it or further invest it and the economy grows. Let’s contrast that with how the Obama Administration has invested taxpayer money in various companies.
The article points out:
Since taking office, Obama has invested billions of taxpayer dollars in private businesses, including as part of his stimulus spending bill. Many of those investments have turned out to be unmitigated disasters — leaving in their wake bankruptcies, layoffs, criminal investigations and taxpayers on the hook for billions. Consider just a few examples of Obama’s public equity failures:
The article lists some of the Obama Administrations investments:
Raser Technologies–The plant now has fewer than 10 employees, and Raser owes $1.5 million in back taxes.
ECOtality–According to ECOtality’s own SEC filings, the company has since incurred more than $45 million in losses and has told the federal government, “We may not achieve or sustain profitability on a quarterly or annual basis in the future.”
Nevada Geothermal Power (NGP)–its own auditor concluded in a filing released last week that there was ‘significant doubt about the company’s ability to continue as a going concern.’ ”
There are more examples in the article, but you get the picture. This reminds me of a story from my youth. During the time my family lived in North Carolina, we went to Florida for a vacation. During that vacation, my parents went to a dog race. As the dogs were marching around the track before the race, my father spotted one he was convinced was a winner. He placed a small bet on the dog. Not only did the dog not win–he refused to leave the starting gate. My father always said that it was because the dog was simply too smart to chase a mechanical rabbit. The moral of the story is, “Don’t place a bet unless you have some idea of what you are doing.” The Obama Administration has a record of placing bets with taxpayer and stimulus money on companies that are not capable of leaving the starting gate. Is this an appropriate role for government, and if it is, shouldn’t they be doing it better?
The article does not mention the jobs lost in the government takeover of General Motors–the dealerships put out of business, the mechanics and other workers in those dealerships.
Considering their track record, do you want the government to continue to make investments with your money?