From JTO
Con is right again on the VC/Private Equity distinction.
Venture Capital is either public or private equity and involves high risk investment in emerging companies with new technologies. these funds assume they willl lose on most of their investments, but the successful ones are so successful they more than pay for the losses. There is a very substantiL VC industry in San Francisco that funds new technologies/firms often located in “incubator” buildings containing dozens or even hundreds of tiny tenants with 1-2 employees in very small spaces.
Private equity firms are just as they are labeled – private cash invested in any sector with a design on making money for investors. Private equity funds are an importNt part of the financing system and should not be demonized in the political process, and I do not think Obama is doing this.
Private equity funds that specialize in distressed companies with the intent of using the bankruptcy laws to protect investors, while liquidating the physical and financial assets of the companies, often including tapping the pension funds of the workers, are called “Vulture Funds”. again, I would not demonize these investors as they move cPitL from less productive to more productive endeVors.
These are some of the “creative” and “destructive” forces in the financial system that are the basis for Peter Scumpeter’s “process of creative destruction” that finance the overall wealth creation inherent in capitalism. But the capital formation system operates in a public policy context – a system of laws that protect property rights, enforces contracts, etc. But the political system in a democracy also protects the public interests such as environmental regulations and labor laws that protect children and rights of workers to organize unions to negotiiate working conditions, etc.
So a pure free market capital system, as sen by a libertarian, requires government to provide only those services that protect the capitalists. It is the democratic imstitutions that do the rest. Keeping these systems running side by side has been the key to our success as we have gotten the advantages of wealth creation inherent in the private market economic system, while managing the negative impacts such as pollution and caring for those unable to do so themselves.
But make no mistake, this system has proven over history that it will continue to maximize short term profits at the expense of the public interest. And Mitt Romney is a poster boy for this mentality. It is clear that Obama will make this the central issue in the campaign and after 30 hears of deregulation I would say it is about time.
Wonderful contributions from both Con and JTO. It should be noted that there is an inverse relationship between the level of intellect that goes into posts and the visitation of right wing trolls. Thank you for reminding us that there are progressive voices in Woodstock and that the Cafe is a place where they can be heard.
Thanks LibDem and you as well Con. I hope those voices continue ti be heard,
LibDem you are raising a legitimate concern regarding progressive voices being heard in Woodstock.
These voices have been all but completely driven out of the town’s boards. There are many, many good and qualified people who would serve on these boards, but the extreme right wing element has made their service so miserable that they simply avoid the entire mess. Many start by ignoring the loudmouths, at fown meetings and attempt to imfluence things as best they can.
About ten years ago, several moderate Republicans became involved in an effort to stabilize funding of the public schools and bring some better land use planning to town. The first objections were from Citizens for Prudent Spending, who targeted individuals with a malicious, personalized gossip sheet they circulatalong then, a new team of pro-education Democrats ran for office. CPS, led by Joe Klusek, ran as a third part and won about 17% of the vote. The Democrats won across the board, but with small minorities or large pluralities. The Republicans lost across the board for the first rime ever, except for a few moderates.
The Republicans realized their error which was to allow the moderates into the nominated positions, which allowed CPS to run as a third party and split off the right wing of the dominant Republican vote. So they shifted tactics, accommodated the extreme fiscal conservatives, eliminated the moderates from the nominating process, publicized their endorsement of Prop 46, and re-aligned with the Academy which receives funding priority over all other needs.
I don’t think this represents the true majority view of most Woodstock residents. The undercurrent is the intimidation of any progressive leadership on these issues through the harsh, personalized and often malicious treatment of anyone who shows the guts to take these interests on. If you think about it, it is what the Republicans do at the national level setting up independent attack campaigns, funded by wealthy interests, to undermine Democratic candidates.
The other approach is the press. When a truly independent, moderate but forward looking local newspaper, Our Town, was established in Woodstock, it was an immediate hit in a town starved for news. Unfortunately, by advertising the new progressive candidates, Our Town made itself a target. The response was the invasion of the Villager, a very conservative newspaper chain in south central Massachusetts, with connections to the leadership of Citizens for
Prudent Spending. As with the personal attack campaigns above, this example also has national comparisons with Fox News and Rush Limbaugh.
What is really unfortunate is the same dynamic present in Woodstock Town Hall, with intelligent and skilled people being dissuaded from participation by personal attacks, has extended to the one local alternative which is here at the Cafe. For reasons I do not understand, Admin has allowed people like LoadStar, and a string of others, to pretty much bulldoze people off the page. Like those serving on town boards, they soon realize that while they have something to contribute, they soon tire of the belligerence of people like
Loadstar, and simply drop out. And that leaves the field to the right wing Republicans.
No justhisidiot, people don’t participate on this website because they’re sick and tired of your nonsense. If you can’t see that then there’s no hope for you. You are in desperation mode now aren’t you as you see Obama getting ready to go down in flames. He just might lose so badly that Romney will even win here in Connecticut and that has you foaming at the mouth. It’s kind of funny to watch.
JTO-
While I believe what you say is true, I am ever surprised by how quickly people concede to fear. Recently I was privy to a multitude of propaganda put into print by CPS several years back. It was used to sway the opinion of a local board from being present outside of a local referendum, in fear that they may be “perceived” as having a political stance- when clearly their intentions were non-political. The fear of backlash that would come from those false perceptions were used to vehemently argue in favor of cancelling a relatively innocuous endeavor by those who experienced this fallout in the past. I respected this advice, understood its source and favored an err to caution, but I wanted to scream.
LibDem – Yes that is pretty typical and consistent with my own experience. In the words of one local political veteran, a moderate with 20+ years experience, “eventually, you just get sick of it”. Loadstar’s vitriol is pretty typical. Funny how he never seems to have anything of substance to say, but keeps himself at the center of the discussion, shrieking like a banshee.