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IN HER NEW book, Bad Company: Private Equity and the Death of the American Dream, journalist and WIRED alum Megan Greenwell chronicles the devastating impacts of one of the most powerful yet poorly understood forces in modern American capitalism. Flush with cash, largely unregulated, and relentlessly focused on profit, private equity firms have quietly reshaped the US economy, taking over large chunks of industries ranging from health care to retail—often leaving financial ruin in their wake.
Twelve million people in the US now work for companies owned by private equity, Greenwell writes, or about 8 percent of the total employed population. Her book focuses on the stories of four of these individuals, including a Toys “R” Us supervisor who loses the best job she ever had and a Wyoming doctor who watches his rural hospital cut essential services. Their collective experiences are a damning account of how innovation is being replaced by financial engineering and the ways that shift is being paid for by everyone except those at the top.
In a review of Bad Company for Bloomberg, a longtime private equity executive accused Greenwell of seeking out sad stories with inevitably “sad endings.” But the characters Greenwell selected don’t just sit back and watch as private equity devastates their communities. The book is a portrait of not only how the American dream is being eroded but also the creative tactics people are using to fight back.
