By Mike Thayer
The bloggers over at iowaliberal.com seem incapable of telling the truth. Virtually everything they post is flawed, half-truth, misinforming or just flat out lies.
The latest example is a post titled,
It's liberal parrot talking point stuff, complete with total misrepresentation of reality. Iowa Liberal perpetuates the lies from liberal pundit Paul Begala as if it was factual information.
False iowaliberal.com claim #1: When Romney drove GST Steel into bankruptcy, he and his partners made $12 million in profit and another $4.5 million in consulting fees.
Reality: With Romney at the helm of Bain Capital, Bain and its partners decided to buy Kansas City based GST Steel for $75 million in 1993. Bain itself put up about $8 million to gain majority control of the company and renamed it to, GS Technologies Inc. That name change and company umbrella is important to remember. Other steel companies were brought into the fold as a part of the Bain Capital investment.
NOTE: Mark Essig, GS Industries’ former CEO - this is the big umbrella company now - never met Romney. Essig came aboard in January 1998, the year before Romney left in 1999 to run the 2002 Salt Lake City Winter Olympics.
"His name never came up in conversation," Essig told PolitiFact. "In my tenure at GSI, he wasn't involved at all."
So Romney wasn't involved in the day-to-day operations of GS Technologies (to include GST Steel in Kansas City). Look how Paul Begala and the liberal parrots at iowaliberal.com try to falsely paint Romney with, "When Romney drove GST Steel into bankruptcy...."
Here are the parts of the story liberal Paul Begala and Iowa Liberal intentionally LEFT OUT:
After Bain Capital and partners bought GST Steel in 1993 and put it under the umbrella of GS Technologies, the company started generating some big time revenue. Let me repeat that, what had been a struggling company prior to Bain's involvement, generated big time revenue. The company generated $1 billion in revenue in both 1996 and 1997. Then the downturn of the entire steel industry took hold, GST Steel was one of 31 companies nationwide that went bankrupt in the '90's through 2003. GST Steel filed for bankruptcy in 2001, two years after Romney left Bain Capital and remember, he wasn't even involved in the day-to-day operations of GST Steel.
Why did the steel industry suffer in the late '90's? Prices for electricity and natural gas skyrocketed. According to GST Steel company reports, the power bill in September 1998 for example was more than double what it had been in 1997. For those of you not familiar with the steel industry, say, like iowaliberal.com (but they sprewed nonsense anyway), GST Steel depended heavily on electrical equipment to produce product. Paul Begala and iowaliberal.com didn't tell you that. Meanwhile, a flood of cheap steel imports from Asia drove down steel prices in the late ‘90s. Paul Begala and iowaliberal.com didn't tell you that either. Paul Begala and iowaliberal.com also didn't tell you that Kansas City based GST Steel was a union mill. Specific to GST Steel, the United Steelworkers Union went on strike at the company in 1997, making pension and other benefit demands. Operating income for the company fell to just $9.6 million in 1999. Meanwhile, costs to cover the severance pay, health insurance, life insurance and pension supplements that had been negotiated during the 1997 strike became unsustainable. Paul Begala and iowaliberal.com also doesn't tell you that GS Industries employed 3,500 and that the Kansas City plant (with 750 workers) a.k.a., GST Steel was the only part of the company shuttered. Meanwhile, Indiana based Steel Dynamics for example, a non-union steel company purchased by Bain Capital, profited during that same period and continues to do so today.
Without Bain Capital's investment in 1993, GST Steel would have gone belly up in 1993.
Bogus misinforming iowaliberal.com claim #2: This one is all iowaliberal.com, not parroting of liberal liar Paul Begala here: Is it really such a surprise Mitt Romney ran for governor of Massachusetts with that same Bain record and ended up 47th in the nation in job creation?
Romney served as the Governor of Massachusetts from 2003 to 2007. The newly elected Republican Mitt Romney entered office facing an all liberal legislature and inherited a sour state economy that was losing jobs every month. Romney had to deal with a hostile legislature that overrode 700 out of the over 800 line-item vetoes he made. The unemployment rate when Romney took office was 5.6 percent. By the time he left, Massachusetts was gaining jobs every month and the bay state's unemployment rate at the end of Romney's term as governor was 4.7 percent. It's no wonder the 47th in the nation in job creation came to be, the all liberal legislature held Romney back.
FACT: Romney established a net gain in jobs during his term as governor.
BET ON THIS: In contrast, Obama will have a significant net loss in jobs during his term as president.