Skip to main content
Update
Non-financial boards have been closed.

Non-financial boards have been closed but will continue to be accessible in read-only form. If you're disappointed, we understand. Thank you for being an active participant in this community. We have more community features in development that we look forward to sharing soon.

Fool.com | The Motley Fool Community
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
Businesses start from zero, someone or some group invests their own money, or leverage their homes and assets to borrow the money, etc. Just for the opportunity to take a risk that most people will not take.

These risk takers win some but lose more, more businesses fail than succeed.

For those that succeed, the risk takers "ARE OWED" the fruits of their risk and pay people accordingly for their labor to support the business.

What anti capitalists fail to realize is even successful businesses have bad years, its not auto profit every day, every week, every month, every year. You can make a million one year and lose $750,000 each for the next two years, before returning to profitability the year after that. You can't go an give everyone raises because you made a million in one year, that just significantly raises your SGA permanently for the next year, which in the ups and downs of markets and businesses increases the losses in bad cycles.

The left in particular try to get everyone to view all businesses as fortune 500 companies, if everyone views all businesses that way then they will have the world view that all businesses are making millions, every year, with greedy millionaire CEO's, etc. that take the money and won't share it. That is far from the truth in the real world. Most businesses are small to medium sized, these small and medium sized businesses are who are employing the masses, not the large companies. So it is wrong to say employees need massive pay increases because that is death to the majority of small and medium sized businesses out there who cannot raise their SGA significantly year to year as margins fluctuate yearly (win some years, lose some years). It's a seesaw in reality, not static auto millions.
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.