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How the Twinkie Made the Superrich Even Richer
Article

How the Twinkie Made the Superrich Even Richer


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Editorial Rating

8

Qualities

  • Innovative
  • Overview
  • Engaging

Recommendation

Private equity has a proven track record when it comes to making money, but the jury is still out on how these firms’ dealings affect workers. In this in-depth article for The New York Times, reporters Michael Corkery and Ben Protess offer a detailed analysis of private equity’s involvement in the 2013 revival of the Hostess snack brand. They present a nuanced picture of private equity’s complicated relationship with workers and show how private equity executives became America’s wealthiest individuals. getAbstract recommends this article to those keen to learn about how the tentacles of private equity affect everyday life.

Take-Aways

  • Private equity firms generate profits for their executives and investors by buying and restructuring failing companies or parts of them.
  • Among private equity’s biggest investors (and beneficiaries) are public pension funds.
  • If private equity firms hadn’t invested in the Hostess snack brand after the company filed for bankruptcy, Hostess’s products and all its workers’ jobs might have been lost permanently.

About the Authors

Michael Corkery and Ben Protess are reporters at The New York Times.