Skip navigation

Net

Popular NetNet Posts


Current DateTime: 03:03:44 23 Feb 2012
LinksList Documentid: 45166246
  • 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

Recent NetNet Posts


Current DateTime: 03:03:44 23 Feb 2012
LinksList Documentid: 38910464
Expiration DateTime: 2/23/2012 3:06:44 AM

Got a Tip for NetNet?

Email:
Call: 201-735-4638
Text Message: 917-740-8477

Subscribe


Current DateTime: 03:03:44 23 Feb 2012
LinksList Documentid: 39085620

Contributors


Current DateTime: 03:03:44 23 Feb 2012
LinksList Documentid: 38852222

Slideshows


Current DateTime: 03:03:44 23 Feb 2012
LinksList Documentid: 43730562

CNBC Top Headlines


Current DateTime: 03:03:44 23 Feb 2012
LinksList Documentid: 38910635
Expiration DateTime: 2/23/2012 3:06:35 AM
    • 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

RSS Feed

» Help

Current DateTime: 03:03:44 23 Feb 2012
LinksList Documentid: 38851925

Mitt Romney's Firing People Gaffe

Published: Tuesday, 10 Jan 2012 | 12:01 PM ET
Text Size
By: John Carney
Senior Editor, CNBC.com

Mitt Romney NH Primary
Getty Images

Mitt Romney took some unfair heat for recently saying "I like being able to fire people."

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

© 2012 CNBC.com


Current DateTime: 01:25:37 23 Feb 2012
LinksList Documentid: 29778428

Current DateTime: 03:38:29 22 Feb 2012
LinksList Documentid: 29779196

Current DateTime: 12:30:56 22 Feb 2012
LinksList Documentid: 29779197

Current DateTime: 02:40:55 23 Feb 2012
LinksList Documentid: 29779199
CNBCCNBC
About CNBC  |  Site Map  |  Video Reprints   |  Advertise  |  Help  |  Contact
Privacy Policy  |     |  Terms of Service  |  Independent Programming Report
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2012 CNBC LLC.  All Rights Reserved.
A Division of NBCUniversal
Thomson ReutersThomson Reuters