Republicans Attacking Capitalism Is Unforgiveable

Ronald Reagan must be turning over in his grave given the recent behavior of Newt Gingrich and Rick Perry, and their attacks on capitalism. I don’t care what adjective they used – crony, predator, vulture – to try to lessen the impact of, or clarify, the statements. Their behavior is patently unacceptable and the mark of desperate men. While desperation often leads to errors in judgment, neither Gingrich nor Perry get a pass on this issue from me, and apparently many others!

Republicans do not assail or attack capitalism and a free-market economy ever!

The comments made by both candidates, though they seem to be walking back some of their rhetoric, strike at the fabric of the Republican party and speak directly to why neither is remotely qualified to be the nominee. Their tactics have come under extreme fire from many sides and appear they may well backfire, which would only be proper given the incredible hypocrisy of their statements.

Neither man is unfamiliar with the benefits of a free-market economy as they have individually reaped the rewards, directly and indirectly, in amassing their own financial fortunes. If Mitt Romney did a better job in his days at Bain Capital and amassed a bigger fortune than Gingrich or Perry, then I say good for him and look upon that as evidence the man knows how to run a business. I for one don’t see where a successful business background is a deterrent in the current economic climate for a presidential candidate.

Then there is the issue of ignorance where Gingrich and Perry exposed their lack of understanding of private equity investment practices as one portion of a capitalist marketplace. Here though they are not alone as many journalists, bloggers, pundits and naysayers are attacking Romney and Bain Capital using misguided statements predicated upon a lack of knowledge. The varying investment practices of different types of equity firms is a topic unto itself so I will not cover it in detail here, but when and how Bain Capital operated is well within acceptable and appropriate parameters given their business model.

Certainly there are issues embodied here that President Obama, Democrats and liberals collectively will use to attack Romney in the general election. So be it as this is one of the great divides between those who believe in a free-market economy that creates opportunity and those who think they are owed something for doing little or nothing to earn it. That’s a debate that I welcome and am confident that Mitt Romney can win, but there is simply no excuse for any Republican candidate to help the Democrats.

There will also be contention over economic principles such as “creative destruction”, a term coined by economist Joseph Schumpeter, and there will be battle lines drawn over the appropriate amounts of regulation that should be placed on the financial services industry. But those are fights for the general election that will be used by many to determine who has the better path for the country.

In the meantime if Gingrich and Perry must resort to their recent tactics to remain in the race then all Republicans lose and that is simply unacceptable. As to the politicking of Newt and Rick it does seem the fallout may already be taking its toll as Sen. Jim DeMint, the influential South Carolina Senator, said last night he’s a “little concerned about the few Republicans who have criticized some of what I consider free market principles here.”

This statement on the heels of a DeMint prediction of Romney winning the South Carolina primary may be enough, even without a direct endorsement, for  Mitt to win in DeMint’s home state. If that happens then Newt Gingrich and Rick Perry are finished in the Republican primary to which I say, good riddance.