Ed Conard, economist, and founding partner of Bain Capital, alongside Mitt Romney, joins Jason Hartman in this episode of Commercial Investing Center. Jason and Ed dive into his New York Times Bestselling book Unintended Consequences: Why Everything You’ve Been Told About the Economy is Wrong, along with his soon to be released book, The Upside of Inequality: How Good Intentions Undermine the Middle Class. The two discuss CEO pay, the growing technology sector, and the impact regulations have on competition.
Key Takeaways:[1:28] Ed discusses his time at Bain Capital with Mitt Romney, when they experienced enormous growth. [3:30] Bain Capital gave clients the opportunity to invest in capital investment and management supervision related opportunities. [5:07] Bain Capital also provided a higher risk strategy, so they could capitalize on investment opportunities of undervalued assets. [7:21] The Upside of Inequality tackles the productivity of the American worker [12:18] The US economy is picking up, and Fortune 400 companies continue to turn over, suggesting companies aren’t just negotiating for a bigger piece of the pie [14:47] People may find it hard to believe, but CEO pay may not be as ludicrous as it appears [19:36] Compared to other sectors of the economy, tech companies pay less taxes and have much looser regulation [21:22] Tech sector profitability has been amazing [22:23] The economy is squeezing the profitability out of most other sectors. [24:45] The way to grow in today’s economic landscape is to have trained talent and the willingness to take a risk