Letter to the editor: Romney wealth not due to job creation

Sue Ravenscroft

Creating jobs is not how Mitt Romney became rich and continues to grow richer. A common way that private equity funds get high returns is by shipping jobs overseas and denying pensions.

For example, in Freeport, Ill., Sensata Technologies Company, which has been highly profitable, is shipping all of its jobs to China by the end of December. Who owns the company? Bain Capital, the company Romney founded and is still invested in. Sensata employees and the mayor of Freeport have asked Romney repeatedly to intervene. He ignores their requests.

The next example is much more complicated, so please bear with me. It turns out that the Romneys have made millions off the General Motors bailout that Romney has severely criticized.

A hedge fund the Romneys invested in is heavily invested in Delphi, a former subsidiary of GM, which makes essential parts for GM. We, the taxpayers, allowed GM to give Delphi over $2.8 billion of TARP funds and to forgive $2.5 billion Delphi owed GM. Delphi used the fact that it was a sole-source provider to extort this bonanza. After this generosity, Delphi shipped jobs to China, fired every U.S. worker and refused to contribute to the workers’ health insurance or to make good on promised pensions. We taxpayers picked up the pension tab via the government-funded Pension Benefit Guaranty Corporation.

On their Financial Disclosure filing, the Romneys provide only the minimum required disclosure, admitting to investing at least $1 million in the hedge fund. Analysts say for every million the Romneys invested, they’ve made at least $10 million; a great return for them, but really lousy for the Delphi workers who lost their jobs, and us, the taxpayers, who paid rich investors to get even richer.