How Private Equity is Destroying the American Dream

What do Toys R Us, Sears, Walgreens, and even your rent all have in common? They’ve been gutted by private equity. It’s sold to us as “saving struggling businesses,” but behind the curtain, the reality is far darker. Private equity doesn’t build. It extracts, it loads companies with debt, slashes jobs, and turns even the American dream of owning a home into just another Wall Street asset.

In this blog post, I’ll break down how private equity actually works, why I believe it’s destroying iconic companies, jobs, housing, and even professions like accounting, and what it means for the future of the U.S. economy.

Toys R Us, Sears, Walgreens: What They All Have in Common

Let’s start with the big names you know. Toys R Us was once a beloved giant, then private equity swooped in. They saddled the company with massive debt, drained it of resources, and when it collapsed, 33,000 people lost their jobs.

Sears? Another American icon, stripped and left for dead. Walgreens? Private equity is circling, and the uncertainty is growing about what the future will hold.

Different names, same story: private equity comes in, extracts value, and leaves wreckage behind.

How Private Equity Really Works (Buy, Strip, Exit)

The private equity playbook is simple:

1. Buy a company using borrowed money.
2. Strip it—sell assets, cut jobs, load it with debt.
3. Exit—cash out quickly, often through bankruptcy or sale, leaving employees, customers, and communities to deal with the fallout.

This isn’t about creating long-term value. It’s about short-term profit, no matter the cost.

Beyond Retail: Healthcare, Housing & Even Accounting

Private equity isn’t just targeting retail anymore. It’s spreading into healthcare, accounting firms, and the housing market.

In housing, Wall Street-backed landlords are buying up homes, raising rents, and tacking on hidden fees. Families get priced out, while rental-backed securities—similar to the mortgage-backed securities that fueled the 2008 crash—are being created behind the scenes.

Healthcare clinics and even accounting practices are now being rolled up by private equity firms. No profession, no industry, seems safe.

From Homes to Wall Street Assets: Families Priced Out

This is where private equity crosses from destroying companies into destroying communities. Homes aren’t just homes anymore—they’ve become assets on Wall Street’s balance sheet.

Entire neighborhoods are being scooped up, rents are rising, and families are being forced out. In some cases, firms have even been accused of collusion, coordinating rent hikes across markets.

When the American dream of owning a home is turned into a profit machine for Wall Street, what’s left for working families?

Vulture Capitalism: Profits Over Stability

Private equity calls it efficiency. Critics call it vulture capitalism—picking apart once-thriving businesses and communities for quick profit.

The incentives are short-term. The risks are long-term. And in the end, Wall Street wins while workers, families, and communities lose.

Key Takeaways

• Toys R Us collapse: 33,000 jobs lost after private equity loaded it with debt.
• Sears stripped of assets, left bankrupt—another American icon gone.
• Walgreens faces uncertainty under private equity control.
• Private equity is spreading into healthcare, accounting, and housing.
• Wall Street landlords are driving up rents with hidden fees and collusion.
• Homes are being turned into Wall Street assets, pricing out families.
• Critics call it vulture capitalism—short-term profits over long-term stability.

Closing: The American Dream at Risk

From Toys R Us to Sears, from housing to healthcare, private equity has shown one thing: nothing is safe. This isn’t capitalism creating growth. It’s predation, extracting value until there’s nothing left.

Watch the full YouTube video here for the complete breakdown—and share your thoughts in the comments. Do you think private equity is destroying the American Dream?

Thanks for reading, and see you there!