The Bain attack is back.
This time it’s being used against Hostess Brands, the Twinkies and Wonder Bread maker that announced Friday it was closing. AFL-CIO President Richard Trumka drew the comparison in a public statement Friday.
“What’s happening with Hostess Brands is a microcosm of what’s wrong with America, as Bain-style Wall Street vultures make themselves rich by making America poor,” Trumka said in a public statement. “Crony capitalism and consistently poor management drove Hostess into the ground, but its workers are paying the price.”
Yep, in a lot of ways it is like Bain’s purchase of GST Steel.
As was the case with Bain and GST Steel, Hostess was in bankruptcy before the current owners were involved.
As was the case with Bain and GST Steel, Hostess was purchased out of bankruptcy with private equity. In this case, $130 million.
As was the case with Bain and GST Steel, the Hostess union immediately went on strike causing the already struggling company to tip over.
As was the case with Bain and GST Steel, the owners, faced with a company bleeding cash, were forced to liquidate assets.
As was the case with Bain and GST Steel, the union employees of Hostess were tossed out of work due largely to their own actions.
As was the case with Bain and GST Steel, the union blamed the people who invested in and attempted to save the company for its failure.
Why? The guiding principle behind the union movement is classic Marxism: Profit on capital is theft and only labor has value.
A non-trivial percentage of Americans agree with and have adopted the crypto-Marxism of the American labor movement. This alone was enough to cost Mitt Romney the election and its socialist agenda will continue to be a major force in the public lives of Americans.