BUSINESS OFFER
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 out 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? That's the offer America gives its entrepreneurs. And the idiots in Washington wonder why there are no new jobs.
uncle Ben? did you write this or is it yet another chaim mail that you folks so adore?
Sure, I am that partner of yours. But first off, if you are actually needing to pay me 50 percent of your profits, you are a fool. I may indeed loan you capital at nice low rates if your business looks good, or if you are a woman or a minority, but we will have to see. I won't "give" you labor but I will see to it that the labor you get is punished should they steal from you, that labor will be at least moderately healthy and I will do my best to ensure that you can select from a labor pool of at least moderately educated people.
Now, here, as your partner is what I will also do. I will ensure that the roads upon which your products are shipped are connected and efficient, that the mail you use to send your products will go to each and every home or business in America. I will see to it that not only you but ALL of your competition plays by the same set of rules.
I will see to it that "your hard earned money" is safe in what ever banking institution you choose. Furthermore, I will see to it that your foreign competition is curtailed, that they won't dump products that would put our little partnership out of business. I will ensure that the exchanges you make are secure. I will ensure that the contracts you enter into with others are backed up by a very complex system that I myself will provide. I will see to it that your business and your employees are not hampered by air and water conditions that look like China's. I will see to it that the products you need in order to run our little enterprise are safe not only for you but for your employees. and our customers.
i will do my best to see to it that the money supply is stable so you can take part in something other than barter in our business. I will see to it that no other country will physicaly come and confiscate you, our business, or our employees. Yes, my services as your partner don't come cheap and of course I am quite insistant that you do agree to be my partner - but you see, I insist that from EVERY legal enterprise and so you sustain no more burden than any of my other partners. If they can be sucessful with me as their partner then surely you have the good business sense to be able to do so?
All in all, your paying 30 percent, and usually LES for my partnership is a damn good deal for what I provide to the relationship.
Oh, and about that 50 percent of your estate? well, unless you are willing to give it to me, then you shouldn't have much of a problem avoiding that little extra bonus I would certainly love to have - after all, you will be dead, and I am not obligated to dead partners.
And lastly, I am your partner, if you screw me, I will screw you - that is the final bargain between business partners and has been since the beginning of business.
So what do you say? shall we start something up? Your choice, millions of others are my partners and most of them do fairly well, a number of them have gotten quite rich - and of course when they get THAT successful, then I tend to get screwed while they get away scott free.