Let’s talk about capitalism. Granted, self-interest fuels the “animal spirits” that create our great business enterprises. Because the benefits of capitalism flow down to society at large, we are often at pains to divide ethical behavior from the other kind. Sometimes labor costs must be cut to stay competitive. Not every factory can be saved. And Bain apologists argue with some merit that the companies acquired were in trouble to begin with.
OK, but if a company is in trouble, do you multiply its debt by a factor of 22 and immediately take out millions for yourselves? That’s what Bain did at Ampad, and, sorry, “looting” is the word.
And here’s another question. What kind of people would walk away from a company with their money doubled but break a promise to workers for severance pay and health coverage if it went bankrupt? This was the case at GS Technologies. You answer that.