Donald Trump has based his political standing and career on the basis of one important characteristic:
His ability to run a profitable business, to make big money, to know how to manage. Better than Hillary Clinton.
He promises to Make America Great Again with his entrepreneurial know how.
But, is this true at all?
Lets check the facts and look closer back to Atlantic city.
Only recently we learned that he lost more than $ 900 million in the 1990th in Atlantic city. This was a disaster, for Donald Trump and all involved.
The Democrats have made a strong point against him:
Trump has exploited small business owners and risked other people’s money to make his billions. #BetterThanThis pic.twitter.com/oROn07UI5C
— The Democrats (@TheDemocrats) 22 July 2016
The bankrupt casinos at Atlantic City and poorly faring Trump Taj Mahal reveal another shocking story – Trump is usually concerned with his own profits, and doesn’t really care if his business goes bust. All that matters for him is that he can walk away with as much money possible.
- Using his ‘charming’ persona to convince investors: Much like he is doing with the presidential campaign, Trump showcased his background as a successful businessman in order to secure funds for his casinos. Trusting his business acumen, banks were willing to lend large amounts of money, which eventually sunk into large debts.
- Drawing large salary and bonuses as the business suffered debt: While the casinos struggled to make a profit, Donald Trump remained unaffected. The reason? He paid himself a large salary and bonuses from the businesses even as they spiraled into losses. Much like a captain sailing away with a comfortable life-boat while his ship sunk haplessly in the sea.
- Borrowing at high interest rates: Going against advice by financial regulators, Trump took high-interest loans to fund the businesses at Atlantic City. This inadvertently caused the casinos to lapse into bankruptcy multiple times.
- Not paying local contractors: Shockingly, local contractors and suppliers claimed that they were not paid for their goods and services, once the businesses started spiraling into losses. Steven P. Perskie, New Jersey’s top casino regulator in the early 1990s, said about Trump, “He put a number of local contractors and suppliers out of business when he didn’t pay them.”
- Didn’t pay construction bill: When Trump declared the Taj Mahal hotel as bankrupt, it nearly caused the collapse of Trias Building Specialties. Unfortunately, as the construction bill also went unpaid, the company Edward J. Friel Company eventually shut shop.
- Defaulted on interest payments to bondholders: Trump didn’t pay bondholders their due interest, and caused them enormous losses due to going bankrupt.
- Led the businesses into bankruptcy four times: Trump led the Atlantic City businesses into bankruptcy a shocking four times, and it seemed like he knew the business was headed for losses, yet he forged on. It appears like his new strategy to borrow money, earn exorbitantly and then leave the company bankrupt again – earn riches while everyone else lost.
- Caused abrupt unemployment for thousands: Quite evidently, as the business shut shop, several locals were left without jobs. It is ironic that Donald Trump didn’t do much for them then, but now promises to offer Americans better jobs and economic prosperity.
- Made exaggerated, false promises: In April 1990, at the launch of the Taj Mahal gambling resort launch, worth $1 billion, Trump told reporters, “It’s truly going to be an incredible place. We’re calling it the eighth wonder of the world.” Ironically, this ‘wonder of the world,’ attracted a lot of attention because of Trump’s earlier reputation, but then sunk into bankruptcy four times.
- Walked away with exorbitant earnings and left business to losses: Donald Trump himself proudly claims that he left the Atlantic City casinos as the ‘perfect time.’ Ironically, it was ‘perfect’ timing only for him – the investors, contractors, suppliers and employees were left reeling in losses.
Beth Rosser of West Chester, Pa., whose father launched Triad Building Specialties, is quite a sharp opinion about Trump:
“Trump crawled his way to the top on the back of little guys, one of them being my father. He had no regard for thousands of men and women who worked on those projects. He says he’ll make America great again, but his past shows the complete opposite of that.”
Lessons learned?
- Trump may be good at making money, but only for himself. He cares not about the other people and the small guys involved.
- As his business history shows, he knows exactly when to leave a project before it fails miserably, often walking away with his amassed wealth or in this case a $ 900 million tax bonus.
- Is his new big project, the United States of America, next?
