Net
- The Buckaroo and the Demand for Money
- College Flunks Four Times; Eliminates Tuition
- ECB May Be Willing to Take a Haircut on Greek Bonds
- College Flunks Four Times; Eliminates Tuition
- New York Housing Market Could Still Collapse: Analyst
- Ouch! UBS's Bonus Pool Got Whacked
- Banks Already Slipping Through New Capital Requirements
- Greek Default: Why Now May Be Best Time to Do It
- What Germans Really Think About the Greeks
- Why the Social Security Tax Fight Is Stupid
- Stuff We Missed: Wednesday, February 22
- Chart of the Day: Europe and U.S. Decoupling
- Will Greek Credit Default Swaps Fall Short?
- Kevin Book: Beware the Downside Potential In Oil Prices
- Stuff We Missed: Tuesday, February 21st
- Modern Monetary Theory’s Big Weekend: The Problem with Surpluses
- ‘Greece Fatigue’: Market Hopes Bailout Plan Will Work
- Sallie Krawcheck: The Euro Is “Fundamentally Flawed”
- Compensation Clawbacks: Bad for Banks, Bad for Shareholders
- Get Ready for Gas Prices to Hit $5 by Summer
- Playing the Banker/Lawyer Game at Stone Rose Lounge
- Memo From the Big Board: Monday Is Not President’s Day
- Government Critic John Kinnucan Arrested for Insider Trading
- Weather Service In Eye of Budget Cut Storm
- Colbert Report Suspends Production
- The Trend Initiation Test for New York Fashion Week
Call: 201-735-4638
Text Message: 917-740-8477
- Euro Zone Economy to Shrink in 2012, EU Stagnates
- Winners and Losers in Obama's Corporate Tax Plan
- More Asset-Buying Depends on Economy: BOE
- Greece Readies Debt Swap Under Bailout Deal
- Stocks Sputter as Investors Seek Next Catalyst
- RBS Hurt by Greek Charges But Pays Bonuses
- Nissan to Recall 250,000 Cars Globally
- T-Mobile USA Wants to Grow Again
- Greek Writedown Hits Commerzbank Earnings
- Wife of UK's Tony Blair Sues Over Phone Hacking
Mitt Romney's Firing People Gaffe
Senior Editor, CNBC.com
![]() |
Getty Images |
This fit nicely into the narrative being constructed by Romney's opponents that he is a "predatory capitalist." It's just a personalized version of the long-standing complaint that private equity firms like Bain Capital, which Romney founded, make money by viciously reducing the workforces of the companies they take over.
What makes this unfair is that Romney wasn't talking about laying off workers. He was talking about choice in health insurance.
Here's the full quote in context (via Business Insider):
"I want individuals to have their own insurance. That means the insurance company will have an incentive to keep you healthy. It also means that if you don’t like what they do, you could fire them. I like being able to fire people who provide services to me. You know, if someone isn’t giving the good service, I want to say, I’m going to go get someone else to provide this service to."
Joe Weisenthal at BI argues that this is still a gaffe. Why?
"Because saying 'I like being able to fire people' is something that nobody would ever use in this context, unless they're someone for whom firing people (restructuring, right-sizing, etc.) is their modus operandi, which applies to a PE guy," Weisenthal writes.
I think Joe's right here. Let me elaborate.
When most of us sign up for insurance, we don't think that we're "hiring" our insurers. The same applies to all sorts of our dealings with large corporations. We don't "hire" our cable company. We don't "hire" our phone company or Internet provider. We don't "hire" the car dealership that leases our car.
And when we drop cable, a car lease, a phone plan, or an insurance plan, we don't "fire" them. We stop using them. Sometimes we might even say we "quit" using them.
In other words, most of us experience our interactions with these large corporations not as if we were their bosses, but as if we were subservient to them. Which we are. We generally need them far more than they need us. Where I live in Brooklyn, for instance, I only have one choice of Internet service. If I don't use the provider, they will hardly notice. But I won't have Internet access. If I stop paying the provider, it feels far more like I quit something than I fired someone.
Romney's line about firing insurance companies revealed that he doesn't experience interacting with these companies the way most Americans do. He's not below the corporate power structure, he's above it. Which means, by extension, that he's above us.
For a guy trying to combat his image as a predatory capitalist, that's not the message he wants to send.
Questions? Comments? Email us at
Follow John on Twitter @ twitter.com/Carney
Follow NetNet on Twitter @ twitter.com/CNBCnetnet
Facebook us @ www.facebook.com/NetNetCNBC
















