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May 25, 2012
Mark Clayton: Is Hillary's State Dept. hacking Al Qaeda? Not quite
Erika Bolstad: Temple cancels Wasserman Schultz speech
The Kosher Gourmet by Ethel G. Hofman: The former president of the International Association of Culinary Professionals, whose members included the likes of Julia Child, is back with contemporary Shavous cuisine: Ruby Fruit Soup, Sweet Noodle Kugel with Cheese, Key Lime Curd, Calsone Casserole Frittata with Wild Mushrooms, Sun-dried tomatoes and Olives, Baked Tilapia with Pepper Cheese Cream and Brown Sugar Shortbread
May 24, 2012
Jeff Jacoby: The peace process battered Israel's reputation
Michael Muskal: 'Pro-choice' position hits record low, according to poll
Chris Farrell: Are We in a Tech Bubble?
The Kosher Gourmet by Penelope Wall: PHILLY CHEESE STEAKS --- hold the steak!
May 23, 2012
Tony Pugh: More private colleges offering tuition discounts
Mary Beth Franklin: How to Choose the Right Annuity for You
Tina Susman: The wig wasn't enough: Man gets 13 years for posing as his dead mom
The Kosher Gourmet by Emma Christensen:A simple way to do fish right
May 22, 2012
Warren Richey: Can US group challenge overseas surveillance act? Supreme Court to decide
Thomas M. Anderson: Walking Away From a Mortgage
The Kosher Gourmet by Megan Gordon: Enjoy a celebration of the most rich and layered flavors: Black bean, sweet potato and quinoa chili
May 21, 2012
Mark Clayton: Cybersecurity: How US utilities passed up chance to protect their networks
Howard LaFranchi: NATO summit: Who will foot the bill for long-term Afghanistan security?
Chris Farrell : Earn Dividends in Emerging Markets with This WisdomTree ETF
Stephen Whiteside, Ph.D. : Mayo Clinic Medical Edge: Social anxiety disorder --- or just shy?
Guy Jackson : Victim's father regrets death of Lockerbie bomber
The Kosher Gourmet by Mario Batali: Famed chef's veal shoulder farsumagru: A festive meat course for late spring
May 18, 2012
Rabbi Berel Wein: Striving: The People of the Book's Book for (All of) the People
Steven Goldberg: 5 Great Stock Picks and the Exchange-Traded Fund that Owns Them
Mary Pickett, M.D.: Ask the Harvard Experts: Don't be forced into gluten-free lifestyle based merely on a doctor's false-positive test
The Kosher Gourmet by Carolyn Malcoun: DIY healthy lunchbox treats: HOMEMADE FRUIT BARS for kids and brown-bagging adults alike
May 17, 2012
Warren Richey: Teacher fired for being unwed and pregnant can sue religious school, court rules
Josh Mitnick: Netanyahu's 'centrist' coalition is already proving it's anything but
Steven Goldberg: Earn Dividends in Emerging Markets with This WisdomTree ETF
Amina Khan: Research links coffee to lower death rates
The Kosher Gourmet by Faith Duran : Cheesy Potato Breakfast Casserole with Cheddar and Sun-Dried Tomatoes
May 16, 2012
Carmen Terzic, M.D., Ph.D. : Mayo Clinic Medical Edge: A variety of exercises can help improve balance
Melissa Healy: National strategy on Alzheimer's disease aims to halt it by 2025
The Kosher Gourmet by Joyce White : GOODNESS GRACIOUS: GREENS! 4 winning recipes that are no longer just for down-home folks (Includes expert tips & techniques)
May 15, 2012
Kristen Chick: Obama administration resumes arms sales to Bahrain despite serious unresolved human rights issues. Activists feel abandoned
Pat Mertz Esswein: Homes are now affordable again and mortgage rates are low. What you need to know before you buy
Kathy Kristof: Our Practical Investor Fights Inflation with These 6 Investments
Sue Hubbard, M.D.: The Kid's Doctor: Lactose intolerant young child? Check again
The Kosher Gourmet by Kathy Hunt: Spread a Little Excitement with EXOTIC CONDIMENTS (4 RECIPES)
May 14, 2012
Lisa Gerstner: How to Protect Your Identity, Finances If You Lose Your Phone
Harvard Health Letters: Heart disease and dementia
The Kosher Gourmet by Megan Gordon: MANGO COCONUT OAT MORNING MUFFINS are a bright but hearty delight
May 11, 2012
Jessica L. Anderson: Get the Best Deal on a Used Car
Jett Stone: Forget face-lifts and fake knees. Scientists have seen the fountain of youth --- and it's broccoli
The Kosher Gourmet by Chef Mario Batali: The famed chef's vegetable dish that tastes true to the season: FAVAS AND SUGAR SNAP PEAS WITH POTATOES AND TARRAGON
May 10, 2012
Sergei L. Loiko: Putin sends warning to U.S., NATO in Victory Day speech at Red Square
Mary Rourke: How being a 'mentch' got Vidal Sasoon his start and fighting in Israel's War of Independence provided him with confidence and a strong sense of his own identity
Jeff Bertolucci: Get Home Phone Service for Less Than $10 a Month
The Kosher Gourmet by Betty Rosbottom: Gleaming with its golden, crimson, and snowy white hues, this silken smooth and creamy STRAWBERRY ORANGE TRIFLE looks impressive, but is easy to prepare
May 9, 2012
Sharon Palmer, R.D. How you can reduce your risk -- or delay -- chronic diseases associated with aging
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Jewish World Review
Jan 13, 2012/ 18 Teves, 5772
Don't Abandon Capitalism
By
Linda Chavez
http://www.JewishWorldReview.com |
It's bad enough when Democrats start playing class warfare, but when Republican presidential contenders begin using phrases like "vulture capitalism," it's time to be really worried.
It's easy to dismiss as sour grapes Newt Gingrich and Rick Perry's attacks on Mitt Romney and Bain Capital, which Romney co-founded. It's no coincidence that the attacks are getting nastier in South Carolina, site of the next presidential primary and perhaps the last chance one of the challengers has of stalling Romney's path to the nomination. But Romney's critics should be ashamed of themselves for promoting anti-business stereotypes.
The left has always treated wealth as suspect. If one person becomes rich, the assumption is that it is at another's expense, which is why the left believes government has the obligation to redistribute wealth.
But it isn't just the left that has a poor understanding of wealth creation or how free-market capitalism works. A growing number of populist conservatives are deeply suspicious of corporate America, too. You can hear it in their rhetoric about everything from the bank bailouts to immigration.
Corporations seem to be the new villains for everyone to hate. And no candidate in recent memory quite invokes the corporate image as much as Mitt Romney. He is the son of a car company executive. He looks like he just stepped off the pages of Fortune magazine. And it turns out that he made his own fortune heading up a private equity firm that specialized in corporate takeovers.
Bain Capital's model was to identify underperforming companies; tighten or replace management; and make them profitable as quickly as possible — which often meant cutting jobs, at least initially. And since Romney and Bain are so closely identified, the implication is that Romney got rich by destroying jobs.
Bain also invested in younger and riskier enterprises than some other private equity companies, which meant a fair number — about one in five — ended up failing despite Bain's involvement. Nonetheless, Bain also helped create more than an estimated 100,000 additional jobs by providing the equity for companies such as Sports Authority. Yet some people seem to think it's immoral for Bain — and Romney — to make money if any jobs were lost.
But is it really fair to blame Bain Capital or Mitt Romney? Not every takeover will be successful, and even the successful ones entail pain in the beginning. Private equity companies that specialize in turnarounds don't usually get involved unless the company is already struggling. And like all companies, the purpose of private equity firms is to earn a profit for investors who have risked their own money.
The alternative would be to treat companies as if their primary purpose is to provide employment rather than turn a profit. That system might work for a while — a very short while. But it would destroy innovation, reduce productivity and ultimately make everyone, including workers, poorer.
If a company isn't profitable, it won't stay in business, even if the owners are pure altruists. Companies fail for lots of reasons: Their products or services are inferior, they lose market share to competitors or they become bloated and inefficient. Turnaround firms like Bain Capital specialize in solving the last problem.
But in order to get a company back on its feet, someone has to make tough decisions by eliminating positions that are extraneous, cutting jobs that aren't vital to the bottom line and trying to produce more or better products and services with fewer people.
The country could do a lot worse than electing a president who knows how to do exactly that. After all, one of the biggest problems facing the new president will be dealing with the debt we've accumulated running a Leviathan federal government. Who better than someone who has cut costs for years in the private sector to bring those same skills to the job of president?
Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.
JWR contributor Linda Chavez is President of the Center for Equal Opportunity. Her latest book is "Betrayal: How Union Bosses Shake Down Their Members and Corrupt American Politics". (Click HERE to purchase. Sales help fund JWR.)
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© 2006, Creators Syndicate
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