With finance under fire, business students discuss Romney, Bain
In this May 10, 2012 file photo, Republican presidential candidate Mitt Romney speaks in Omaha, Neb.
Terms like “private equity” and “securities” might mean little to the average liberal arts student, but for undergraduates pursuing careers in business and finance, they’re just part of the everyday lingo. Recent controversies, however, have thrust the elusive world of Wall Street into the spotlight, prompting a national conversation about a once-mysterious industry.
At the center of the debate is Bain Capital -- the financial services firm that presidential candidate Mitt Romney co-founded in 1984.
Some commentators argue that Romney’s experiences at Bain fail to qualify him for the nation’s highest office. In a recent Rolling Stone cover story, the political journalist Matt Taibbi argued that the candidate’s tenure at Bain suggests that he would advance a “crazy, vicious and almost unbelievably selfish” vision of society as president. And in July, President Obama told CBS News that there are “questions that have to be asked” about Romney’s record at Bain.
Just this past week, Bain came under fire again when the New York attorney general revealed that the firm was one of a dozen companies being targeted in a recent investigation. Attorney General Eric Schneiderman will review Bain’s tax strategies, searching for signs of rule breaking.
Though the investigation made national headlines, many business students say that the inquiry won’t deter them from pursuing a career in finance. Sam Kinsman, a junior finance major the University of Georgia, said he believes these kinds of investigations are par for the course -- in fact, they’re a sign the system is working.
“Regulators should be investigating,” Kinsman said. “That is their job.”
Linda Zhong, a sophomore at Princeton University interested in pursuing a career in finance, said the investigation didn’t surprise her, but for different reasons than Kinsman’s. Zhong said that complex loopholes in the tax code make tax violations especially enticing for firms hoping to profit from cheating.
“I’m disappointed these disgustingly wealthy firms are trying to get more disgustingly wealthy, but I’m not shocked.”
Though the interviewed students all emphasized their personal interest in finance, they were split on whether Romney’s business background would be an asset in the Oval Office.
Manas Rajaram, a freshman Schreyer Honors Scholar at Pennsylvania State University, said that while some voters might perceive Romney’s experiences in the financial sector as an asset, they should consider the human impact of the policies that the candidate’s background might move him to implement.
“Balancing the budget in a Romney White House would mean the end of welfare, food stamps and other security measures,” Rajaram said. “Our welfare budget is a corporate inefficiency, but a human necessity.”
Kinsman, the UGA finance major, disagreed. He said he believes that Romney’s business experience is a testament to his strength as a candidate.
“Private equity firms employ some of the smartest people on the planet,” Kinsman said. “Mitt Romney’s success in this very competitive industry demonstrates he has the intellect and the leadership skills to address the country’s massive fiscal problems.”
Given the differences between Wall Street and 1600 Pennsylvania Ave., voters should look beyond Romney’s business record when casting their votes, Zhong said.
“Romney is not spending millions trying to get elected so he can lower the tax rate of his peers and himself,” she added. “He's doing it because he thinks he has a solution for our country.”
Marissa Medansky is a Fall 2012 Paste BN Collegiate Correspondent. Learn more about her here.
This story originally appeared on the Paste BN College blog, a news source produced for college students by student journalists. The blog closed in September of 2017.