Business Simplified for Idiots

Business is simple. But apparently some people can’t handle ‘simple’.

 

 

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One thing that scares me on occasion, is when people tell me I’m intelligent.  Oh I’m no moron, but I write about a lot of what seem to be obvious things, yet a lot of folks seem to have missed these basic facts.  For instance, we’ve been subjected to a lot of whining about how hard graduates are finding it to get a good job, and politicians are shocked to learn that gimmicking the system to help their buddies is bad for the economy.  It’s really pretty simple to understand how money works in an economy, and what someone has to do to get a job, yet a lot of folks seem to fail at even basic comprehension.

 

Money works by moving.  Money has value only when someone accepts it for a product or service, which means a transaction takes place.  The money moves, whether it’s gold, paper, credit, or any other accepted mode of commerce.  Holding, saving, and investing any kind of valuable works only on the assumption that the commodity or currency will be accepted in a later transaction. 

 

Period.

 

This starting point leads directly to the second point – money is made through work.  You either make something of value, or perform a service of value, and you do so either to use the product or service, in which case it’s not business but self-provision, or you create the product or service for someone who will provide you a good or service of agreed quantity and quality, or an accepted token of value which you believe will hold its value for use to get a product or transaction you need or want from someone else.

 

Period.

 

All employment, therefore, is done with the intent of collecting units of assumed value for use in later transactions, and all employees are hired on the promise and assumption that they will work to produce a net gain for their employer in the desired currency.

 

Period.

 

Consequently, there is no basis for hiring someone just because they want to earn money, or because they have finished school, or because they think they are entitled.  Also, all groups and organizations, including government, which seek to compel employment of persons whose net effect does not increase profitability for the company, are by nature inefficient and contrary to the company’s basic reason for existing.  Activity, therefore, by governments, unions, or outside forces is by definition parasitic, and increase of such activity always damages the industry and economy where the company operates.

 

Period.

 

Taxes are collected by government to pay for goods and services the government uses, at all levels.  Therefore, taxes are by nature damaging to a business’ operation, and so a business will generally seek to locate and operate wherever taxes are the least damaging .

 

Period.

 

Because most adults work as employees of businesses, the general effects of government, unions, and special political interests are inimical to the employees’ best interests, as more damage than help is done by these forces to the business, and all such costs and consequences are passed along to the employees and consumers, which includes all employees since wages are used to buy things (see point one). 

 

Period.

 

Why do politicians not understand?  Why do so many kids graduating from high school and college miss these basic facts?  Because neither group has worked for a living, neither has experienced the truth of how money and employment work, and so they are alien to reality. 

 

Period.