I’m writing in response to the announcement of Mr. Rasmusson’s campaign to replace Rep. Nornes. The article on Mr. Rasmusson described his career as working to “create good jobs.” This is a fundamental misunderstanding of the purpose of venture capital groups like Bain Capital and “consulting” groups like McKinsey.
These businesses don’t create jobs, they eliminate them. Their purpose is to increase the wealth of shareholders in New York, Washington, and maybe, if we’re lucky, Minneapolis. For these groups, the loss of hundreds of jobs doesn’t matter if the stock price goes up a cent or two—it’s all about getting as much as you can in a short period of time before dumping the stock before it crashes. And there’s no surer way for a company to create this instant-equity for shareholders than by firing workers. Both of these companies are famous for suggesting (or forcing, in the case of Bain) companies to make the same products or provide the same services as before but with fewer employees. An Axios article from 2018 credited private equity buyouts (what Bain does) with 61% of retail layoffs. When the readership of this paper wonders who they need to blame for Herberger’s and Shopko closing in Fergus Falls, groups like Bain should be at the top of the list.
The people that create jobs are small businesses, not the big East Coast elite companies—like Bain and McKinsey—that think the solution to every problem is to lay off half the workforce. Perhaps Mr. Rasmusson’s new consulting group is different, but Bain and McKinsey are absolutely responsible for killing a heckuva lot more jobs than they created and I feel that’s worth stating for the record.