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. And I won't give you any labor – that's definitely up to you. What I will do, however, is demand that 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: to tell you what to do.
In return for telling you what to do, I'm going to take roughly half of whatever you make in the business. 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 your share of the business whenever you'd like…because our agreement says that, 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 the labor. That's 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. 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. 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 them.
All in all, if you're a very successful entrepreneur – if you're one of the rare, lucky, and hardworking 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…
[ Editor's Note : Since the current economic crisis started, Porter Stansberry's dead-on predictions have caught the attention of CNN , Barron's , and Forbes .
He's shown his subscribers how to make an enormous amount of money, no matter what the government and stock market did. Today, many of his readers are much wealthier. Donald Scheidt, for example: "You helped make the last two years of my father's life something great … you made him a millionaire." For a special preview of Stansberry's next moneymaking prediction, please click here.]
News and Related Story Links:
- Money Morning Commentary:
"Financial Reform" Just Camouflage for Wall Street's Latest Power Play