This Is Why There Are No Jobs in America
By Porter Stansberry
Saturday, August 21, 2010
I’d like to make you a business offer.
Seriously. This is a real offer. In fact, you really can’t turn me down, as you’ll come to understand in a moment…
Here’s the deal. You’re going to start a business or expand the one you’ve got now. It doesn’t really matter what you do or what you’re going to do. I’ll partner with you no matter what business you’re in – as long as it’s legal.
But I can’t give you any capital – you have to come up with that on your own. I won’t give you any labor – that’s definitely up to you. What I will do, however, is demand you follow all sorts of rules about what products and services you can offer, how much (and how often) you pay your employees, and where and when you’re allowed to operate your business. That’s my role in the affair: to tell you what to do.
Now in return for my rules, I’m going to take roughly half of whatever you make in the business each year. Half seems fair, doesn’t it? I think so. Of course, that’s half of your profits.
You’re also going to have to pay me about 12% of whatever you decide to pay your employees because you’ve got to cover my expenses for promulgating all of the rules about who you can employ, when, where, and how. Come on, you’re my partner. It’s only "fair."
Now… after you’ve put your hard-earned savings at risk to start this business, and after you’ve worked hard at it for a few decades (paying me my 50% or a bit more along the way each year), you might decide you’d like to cash out – to finally live the good life.
Whether or not this is "fair" – some people never can afford to retire – is a different argument. As your partner, I’m happy for you to sell whenever you’d like… because our agreement says, if you sell, you have to pay me an additional 20% of whatever the capitalized value of the business is at that time.
I know… I know… you put up all the original capital. You took all the risks. You put in all of the labor. That’s all true. But I’ve done my part, too. I’ve collected 50% of the profits each year. And I’ve always come up with more rules for you to follow each year. Therefore, I deserve another, final 20% slice of the business.
Oh… and one more thing…
Even after you’ve sold the business and paid all of my fees… I’d recommend buying lots of life insurance. You see, even after you’ve been retired for years, when you die, you’ll have to pay me 50% of whatever your estate is worth.
After all, I’ve got lots of partners and not all of them are as successful as you and your family. We don’t think it’s "fair" for your kids to have such a big advantage. But if you buy enough life insurance, you can finance this expense for your children.
All in all, if you’re a very successful entrepreneur… if you’re one of the rare, lucky, and hard-working people who can create a new company, employ lots of people, and satisfy the public… you’ll end up paying me more than 75% of your income over your life. Thanks so much.
I’m sure you’ll think my offer is reasonable and happily partner with me… but it doesn’t really matter how you feel about it because if you ever try to stiff me – or cheat me on any of my fees or rules – I’ll break down your door in the middle of the night, threaten you and your family with heavy, automatic weapons, and throw you in jail.
That’s how civil society is supposed to work, right? This is Amerika, isn’t it?
That’s the offer Amerika gives its entrepreneurs. And the idiots in Washington wonder why there are no new jobs…
If, after reading this, you think that every business owner, especially the small business owner (the “mom & pops”) have it made and don’t need relief from the tax burden of the government, then you are truly drinking government-branded Kool-Aid.
What many people do not realize is it is the small businesses making the products for the larger businesses to either sell or incorporate into their own products. And it is these businesses that provide the majority of jobs throughout this country. For instance…
My wife worked for a small cosmetics company for a while that sold their products to Walmart for Walmart to resell. The company is constantly teetering on bankruptcy between the pressure of the government taxes & regulations and Walmart’s aggressive buying practices. That company has less than 25 people in it, which is defined by the government to be a small business.
Think of how many other companies are in the same situation, and now it becomes easier to understand why so many larger businesses are fleeing this country and setting up shop in places like China and Mexico. Hell, look at the exodus of companies from California because of that state’s tax structure (Bloviating Zeppelin has a great post on this).
Companies & businesses do what they do for one reason only – to make money (profit) for the owners or shareholders. It is not, as some believe (like Obozo), to create that money for the government to take & spread around to the rest of us. Remember – Socialism and Communism have been spectacular failures when applied to governments and countries. Why anyone in their right (or left) minds would want to put a similar system in place in the United States is beyond my comprehension.
We all know that government is one of the worst money managers around. If they were running a business with their fiscal policies, they would have been bankrupt many, many years ago. Yet they spend money, our tax money, without regard to the burdens that is placed upon the citizenry. And mostly, they are doing it without any consequences.
Our national debt is screaming along, increasing by staggering amounts every second as the interest piles up. With companies & businesses abandoning this country for better tax rates elsewhere, the burden of this debt now falls upon the people, the average taxpayer, who is struggling to keep whatever job, home, & life that they may have. The burden doesn’t fall on the morons that put us in the debt to begin with. Perhaps if our duly elected leaders spent that money as if it was coming out of their own pockets, this country wouldn’t be heading down this economic road to ruin. Unfortunately, it’s going to come out of the pockets of generations to come.
And that’s the real tragedy, the real decimation of the American Dream by the power-hungry politicians that we have allowed to put us in this mess by our own inattention and indifference. We have bought into the premise that government has our best interests in mind, only to find that that is far from the truth. Government, as it is now, is ruled by the political elite that has their own power-grabbing agenda, supported by a lapdog media promoting “social justice” through government control, and elected by a population that increasingly has its hand out for sustenance because they do not have any other choice!
If anyone paid attention in ancient history class, this is a variation of the situation ancient Rome found itself in, and that civilization collapsed. And it didn’t collapse in a graceful manner, either – history shows that it was the beginning of an ugly, violent period that affected the direction of the world. With the economic situation of the world as it is now, and Radical Islam fulfilling the role of the Barbarians, the pieces are in place for the United States, that grand experiment in government by the people, to follow Rome. And that, dear readers, doesn’t bode well for our progeny.