While reading Dana Milbank’s column distributed by the Washington Post Writers Group, titled “Romney’s “regular-guy’ efforts as odd as Gore’s”, (see Tweet) I recalled several life experiences related to the debate around Mitt Romney and how many jobs he really created.
Anyone old enough to have been working during the 1990′s will remember huge international corporations loaded with cash acquiring small corporations and some companies that were family owned from inception. The prices these corporations were willing to pay were as unbelievable as salaries demanded by our best athletes. Small corporations could not resist. During the long acquisition process employees would be assured their jobs were secure. Of course, this was not totally true. Positions were eliminated as headquarters were consolidated. The true intentions were not revealed until the corporations were ready to deal with a huge attrition rate. Until the end employees were told their jobs were secure and not to worry. In some cases they were told their jobs were not only safe, but would become more interesting.
Were jobs created in the above example? It is very possible that jobs were created at headquarters where jobs were consolidated. Was creating jobs the goal? Absolutely NOT. It was all about acquisitions and making the founders, conglomerate and shareholders wealthy.
The same can be said when corporations and government improve their technology and become more efficient. They assure workers during IT projects that their jobs will not be eliminated. Executives often suggest to employees that their jobs will only change and/or become more interesting. Is this accurate? Of course NOT. There will be fewer jobs because the goal is efficiency and eliminating tedious work that can be automated. Employees are told their jobs are safe until they are no longer needed. Executives and managers do not want employees to depart early. Will jobs be created? Yes! Jobs will be created for those with the skills needed to maintain the systems.
In the above examples one could argue jobs were created. Mitt Romney may have seen jobs created while at Bain, but that was not the goal of the corporation during acquisitions.