Example: a PE firm buys a family-owned aerospace engine component maker. The company supplies a critical component that accounts for only 2% of the total cost of the engine it goes into. The PE firm sees this and says "we have pricing power" and then doubles the price out of the gate and continues to raise it every year. Because, well, it's critical and still a relatively small percentage of the overall cost of the engine. Mind you that the family that ran the business never raised prices because there was no need and they weren't actually doing anything new to warrant the price increase.

Now take this one example and multiply it across every segment of the economy. (And every part inside of an airplane engine, for that matter.) Oh, what business mastermen!

(http://www.autoadmit.com/thread.php?thread_id=5851679&forum_id=2/#49782023)

But yes, Jack Welch was a pioneer of the extraction-in-lieu-of-value-creation approach. PE just has it as its entire operating model.

(http://www.autoadmit.com/thread.php?thread_id=5851679&forum_id=2/#49782204)

Apps everywhere that do nothing

Why don’t cars come from china, you ask? Bc the auto industry employs like 10,000,000k people directly or indirectly

Video games that cost $500,000,000k to develop and then fail immediately

(http://www.autoadmit.com/thread.php?thread_id=5851679&forum_id=2/#49782041)