Romney and private equity: the new ruling class

When Fraser Bullock–author of this fawning paen–met Romney, Romney was “was leading the company he founded, Bain Capital, one of the leading private equity firms in the world.”

Question: What is private equity? The Economist offers insight in an article titled The trouble with private equity; Private equity has come in for much political criticism, but its more serious problems are financial.

Further question: what sort of professionals manage private equity funds?

Romney articulates himself in the rhetoric of enterprise and finance capitalism; but Romney himself belongs to a different phase of capitalist development, what Drucker refers to in his Post-Capitalist Society as “pension-fund capitalism,” the era of the institutional investor where putative owners (present employees and future pensioners in the case of pension funds) aggregate vast wealth through the medium of institutions. This vast wealth is managed by a professional class of specialists. Yet, argues Drucker, neither the managers (of the funds) nor the owners are “capitalists”. “This is capitalism sans the capitalist.” And sans the capital too, as the money that accumulates in equity funds, pension funds, mutual funds etc. “does not fit any known definition of capital.” In other words, pension-fund capitalism is the abolition of capital and the management of the economy by other means (other than political); hence, for Drucker, our state is rapidly although unevenly transitioning to a post-capitalist era.

The social and political implications for corporate governance in a post-capitalist era, and for market-democracy, the political expression of finance capital, remain an open question.

But this much we do know. The new non-capitalists, in the person of Willard Milton Romney, are attempting to enter public life at the top: the equity sector may soon occupy the White House! Urgent question: What is the character of this new non-capitalist? What does he or she value? How does he or she articulate the historical tasks of our era? We should like to know, only Romney isn’t helping us. So far he speaks to us only in empty platitudes.

Where is the real Romney? What does he really have to say?

yours &c.
dr. d.g.

Advertisements

  1. 1 world financial system in crisis; Romney, who made his fortune in the equity sector, has nothing to say « who is willard milton romney?

    […] Romney and private equity: the new ruling class […]

  2. 2 Geraghty suggests Romney’s father as cause of Romney’s gaffs and pratfalls « who is willard milton romney?

    […] argue—an artifact of his professional temper and apolitical habits of mind. The man is an equity sector manager of funds. What you do when you manage funds is you hedge against uncertainty or against any sense of being […]

  3. 3 Romney ponders Ross Perot « who is willard milton romney?

    […] the equity sector candidate, who wants to apply principles of problem solving familiar to capital managers to Washington etc., […]

  4. 4 the candidate from Bain Capital; more on Romney and the private equity sector « who is willard milton romney?

    […] have harped on this string before—see: Romney and private equity: the new ruling class. As much as we wish it were so, Romney is not an aberration. He and his peers represent the most […]




Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s



%d bloggers like this: