Sensata Nonsense

How do you know the liberals are worried about the polls? Because they are dragging out things like Sensata. Apparently, Bain Capital owns a little over half of Sensata. Sensata recently bought a plant in Illinois and decided to outsource all the jobs to China. So, since Mitt Romney is part of Bain …

I understand the bitterness of the workers in Freeport, who have lost their jobs. I have no idea whether Sensata’s decision is good idea or a bad one. I do know that this has nothing to do with Mitt Romney, who does not run Bain and whose assets are in a blind trust. Even if he wanted to stop this move, he couldn’t. This is just a liberal ecosphere desperately trying to pin a scandal on Mitt. They even posted a picture of a Sensata plant in China, claiming it was the Freeport one.

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  1. dbaggins

    I guess I don’t get the point here. Rationalizing the cost structure of a corporation is more or less what a private equity firm like Bain does and its certainly not alone in that regard. This idea of protecting American jobs from being shipped abroad in the context of a global economy is more or less futile as the skill gap and infrastructure constraints that would have previously prevented outsourcing have decreased substantially. I understand that its easy for a white collar yuppie like myself to talk about this without fully understanding the implications it has for Americans who rely on manufacturing jobs for income, but this is just one of the ugly realities of global modernization that comes with technology advancements and the economic/educational development of Asia. There really isn’t a policy that can be adopted to reverse this without seriously handicapping the US in the long run and neither Obama, Romney nor Bain can do anything about it except adapt to the flow to the best of their abilities. I know a lot of people will simply see this as another way that the wealthy takes it piece out of the working middle class but keep this in mind. Bain’s investors breaks down into a mix of employees, wealthy individuals and large pension funds with significant capital. Many of these consist of pension funds for unions and state retirees who directly benefit if Bain’s able to earn its 20% target IRR by maximizing the margins of its portfolio companies. So if you’re of the opinion that private equity vehicles and hedge funds offer a lucrative opportunity to wealthy individuals that most don’t have access to, it might be time to organize and petition your union/state pension fund to alter its mandate to take more advantage of these vehicles.

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