565. Are Private Equity Firms Plundering the U.S. Economy?

They say they make companies more efficient through savvy management. Critics say they bend the rules to enrich themselves at the expense of consumers and employees. Can they both be right? (Probably not.)

 

RESOURCES:

• Plunder: Private Equity's Plan to Pillage America, by Brendan Ballou (2023).
• Two and Twenty: How the Masters of Private Equity Always Win, by Sachin Khajuria (2022).
• “The Economic Effects of Private Equity Buyouts,” by Steven J. Davis, John Haltiwanger, Kyle Handley, Ben Lipsius, Josh Lerner, and Javier Miranda (SSRN, 2019).
• "In Silicon Valley, Even Mobile Homes Are Getting Too Pricey for Longtime Residents," by Tracy Lien (Los Angeles Times, 2017).

EXTRAS:

• "Should You Trust Private Equity to Take Care of Your Dog?" by Freakonomics Radio (2023).
• "Mobile Home Parks," by The Economics of Everyday Things (2023).
• "The Secret Life of a C.E.O.," series by Freakonomics Radio (2018).
• "Extra: David Rubenstein Full Interview," by Freakonomics Radio (2018).