Published Articles

Why I Support Mitt Romney

SuperUser Account posted on November 02, 2012

Rick Rummage

is CEO of the Rummage Group, a recruiting firm.

This is the second of two opinion articles about November’s presidential election. The first article in the series argued the case for the reelection of President Barack Obama.

If you were going to start a business, would you rather have Mitt Romney or Barack Obama as your business partner? I prefer Romney and here is why.

Romney has spent most of his life as a businessman creating jobs, giving him firsthand experience in free-market capitalism. Romney is in tune with the needs of professionals in the wealth management industry. He understands the free market and knows that the best way to revitalize the economy is by focusing on top producers, whereas Obama focuses on the low producers.

Just as Romney would make the better business partner, he clearly would be the better president and would do more to benefit the wealth management industry and the U.S. economy as a whole. Romney has had a huge track record of success in his life. He has spent most of his life as a business man creating jobs. He has firsthand experience in free-market capitalism. He has been a very successful governor in a very Democratic state. If anything, he is not conservative enough. Romney is a little right of center, which should make him attractive to all.

What's compelling about the Romney plan is its simplicity: Make it easy for those who control capital to grow and the result will be more jobs and a faster-growing economy. He understands that the top 20% really control the economy, not the bottom 20%. This does not mean that Romney does not care about the bottom 20%. He knows that a strong economy will positively affect all Americans.

To make it easier for the top 20% to grow, Romney will take several steps that will benefit the wealth management industry both directly and indirectly. He will work to reduce regulation, which acts as a road block for business growth.

Furthermore, Romney will reduce taxes for those at the top, that is, those who control capital, which will give those wealthy Americans more to invest in existing and potentially new businesses. That enables them to create more jobs.

There is a historically high amount of capital sitting on the sidelines. Overall, having a president who vigorously supports business will in itself make business owners more willing to make more investment risks now. During campaign speeches, Obama loves to rip on the millionaires and billionaires, but they are the individuals who create jobs. Job creation is what the U.S. economy needs above all else.

The wealth management industry knows firsthand that Romney’s focus on the top producers is the best way to ensure growth. Indeed, his plan is similar to the commission structure that wealth management firms have in most, if not all, divisions. A firm’s small producers keep less of the firm’s profits because they produce less. Meanwhile, the firm’s bigger producers keep more because they produce more. Firms do this because they know that dangling the carrot of higher earnings yields better results, and it works.

As a country, we must get back to focusing on the carrot of capitalism. Obama focuses on the bottom 20% of the population, a segment that doesn’t control capital and doesn’t create jobs. We’ve already seen the results of his political stances. The wealth management industry knows that nothing starts to change for the better until somebody works hard, takes risk, becomes innovative and ultimately employees others.

This country needs a president who understands the benefits of free-market capitalism and how to create economic growth as well as the wealth management industry does. That’s why I support Mitt Romney for president of the U.S.