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.]
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After reading your plan of all plans here ,I have concluded that in my unbias oppinion only, your completly insane .Tell me ,how many takers do you have willing to risk it all to let you take half of there earnings ,then another 20% when they want to sell and then on top of that, let you take another 50% when they die ? Give the american people a little credit would you?
Again my statments are based on oppinions only!!
Thanks' I feel better now!
He's referring to the federal government, dolt… You already do all of these things whether you realize or not.
Doesn't it make sense to be illegal? A different branch of big government handles that and is not nearly as threatening. I have used this argument over and over again about how, 30 years ago, when my dad had a toilet on a rental property overflowing, his partner wasn't there. Now he wants to sell and they are all over with their hand out. I do not mind the thought of paying some taxes, but it is to the point where there are taxes on the taxes. P. S. Contrary to what FOX may say…these things occured before OBama.
Sounds about right. How do we get back?
Thank you for your excellent, informative, sarcastically humorous artikle!
Dear Porter,
I wouldn't mind being your partner.
Because you fail to mention what you do for me:
– roads
– a policed state
-an army to protect me
-social services, etc…
As a french-born American citizen, raised under the socialist beliefs common in Europe, I truly believe it's fair to share some of the burdens. SO DO YOU, indirectly: you have Auto Insurance, Home Insurance, Life Insurance, and medical coverage. All risks you accept to share, and pay for.
So, I don't mind giving you part of my money, to share these risks.
WHAT I DO MIND, though, and what I HATE in our partnership, is HOW YOU USE MY MONEY: while I'm thrifty, saving any cent I can, I see you spending whole dollars foolishly, basically wasting the hard-earned money you colledct from me. THAT HAS TO STOP.
You claim any government system can never be as efficient as a private enterprise: this is b…S…, and some systems in Europe prove it. There is no law, no principle, that says a government administration CAN'T be efficient. The fact that most aren't is no proof.
I just need to kick your derriere, and not allow you to work that sloppily. I need to force you to fire your bad workers. And, if you refuse, I need to VOTE YOU OUT.
Our problem is NOT taxes. Our problem is HOW LITTLE WE GET, in exchange for what we pay.
That's called government / political waste, and THAT'S what need to change.
J.P. Rouland
Dear Jean-Pascal,
The problem here in the US is something called the Constitution. Our government structure is fundamentally inconsistent with the degree of socialism found in European countries. The chasm between the left and right is actually an argument about Federalism, something our founding fathers argued about to a great extent. Regarding money, I'd rather deal with some greedy capitalist than a greedy politician. With the former I can always choose to not buy the product or invest my money elsewhere. With the latter I have the choice of being thrown in jail if I don't hand over my money. And please don't tell me that European politicians are so ethical that they don't abuse their power and position for personal gain.
JEAN, I liked the way in which you explained Porters letter., but i do believe that is exactly what porter was saying. the next question is how do you stop in trenched ,liers thieves and parrasites from pulling the gravy out of the trough.
Therein lies an argument for a flat tax of 10%. However that would raise more revenue, reduce regulation and put a lot of lawyers and regulators out of work.
This is a great article – would it be possible to get permission to share it more widely? (w/ credit to the author and MM of course)
ART
We encourage the sharing of our material on other websites – please see the syndication button at the top of the article in the toolbar…
Thanks,
Money Morning