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How Private Equity Is Destroying Jobs and Killing the American Economy

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The Buyout of America: How Private Equity Is Destroying Jobs and Killing the American Economy

by Josh Kosman

4 out of 5

Language	:	English
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Private equity firms are a major threat to the American economy. They are buying up companies, loading them with debt, and then slashing jobs and benefits. This is destroying the middle class and killing the American dream.

How Private Equity Works

Private equity firms are investment firms that raise money from wealthy individuals and institutions. They use this money to buy companies, often taking them private. Once they own a company, they can do whatever they want with it, including selling it, merging it with another company, or breaking it up and selling off its assets.

Private equity firms typically make money by buying companies that are undervalued and then selling them for a profit. They also often charge high fees to the companies they own.

The Impact of Private Equity on Jobs

Private equity firms have a devastating impact on jobs. When they buy a company, they often slash jobs to reduce costs. They also often outsource jobs to other countries where labor costs are lower.

A study by the Economic Policy Institute found that private equity firms destroyed 2.5 million jobs between 2005 and 2016. The study also found that private equity-owned companies have lower wages and benefits than non-private equity-owned companies.

The Impact of Private Equity on the Economy

The job losses caused by private equity firms are having a devastating impact on the American economy. The loss of jobs is leading to lower consumer spending, which is slowing down economic growth. It is also leading to higher unemployment and poverty.

In addition to the job losses, private equity firms are also contributing to the rising inequality in the United States. The wealthy investors who own private equity firms are getting richer, while the workers who are losing their jobs are getting poorer.

What Can Be Done to Stop Private Equity?

There are a number of things that can be done to stop private equity from destroying jobs and killing the American economy. One is to regulate private equity firms more closely. The government can require private equity firms to disclose more information about their investments and their fees. It can also limit the amount of debt that private equity firms can take on.

Another way to stop private equity is to support worker-owned cooperatives. Worker-owned cooperatives are businesses that are owned and controlled by their workers. They are not subject to the same profit-maximizing pressures as private equity-owned companies, and they are more likely to invest in their workers and their communities.

Private equity firms are a major threat to the American economy. They are destroying jobs, killing the middle class, and contributing to rising inequality. The government needs to take action to regulate private equity firms and to support worker-owned cooperatives. Only then can we stop private equity from destroying the American economy.

The Buyout of America: How Private Equity Is Destroying Jobs and Killing the American Economy

by Josh Kosman

4 out of 5