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A Business That Made No Profit

Revoltingest

Revoltingest

Pragmatic Libertarian
Premium Member
Talking to a friend....a Maga recently.
He lamented how bad the Biden economy is.
Trump would fix it.
He said that he wonders why he bothers to show up
to run his business (shared with his brother) when the
company has made no money for years. He really
wants to sell the company or its assets.

I asked how he gets by, because his wife doesn't
work. Oh, he gets a paycheck from his business.
Duh!
The reason the company makes no profit is
because he & his brother take all the profit
as wages. Turns out that they each make a
pretty good living. They just weren't aware
of it.
(Both had liberal arts degrees...no business
courses.)

It shows how some people are so poor at
analyzing a situation. It's the same with his
reasons for voting for Trump. I'll not go into
those, but they're at least as dumb as his
financial accounting skills.
 
Shadow Wolf

Shadow Wolf

Certified People sTabber & Business Owner
Revoltingest said:
The reason the company makes no profit is
because he & his brother take all the profit
as wages. Turns out that they each make a
pretty good living. They just weren't aware
of it.
(Both had liberal arts degrees...no business
courses.)
Click to expand...
I don't get how so many make that mistake. If you find something with incredibly low overhead you can approach it more like that. But still not totally.
I worked for one bozo who did that, and because he did that the business didn't have the funds to pay me what my checks were short (I wasn't there long at all).
 
Revoltingest

Revoltingest

Pragmatic Libertarian
Premium Member
Shadow Wolf said:
I don't get how so many make that mistake.
Click to expand...
This same guy figured that he could have the company
buy a $20,000 BMW motorcycle, & it wouldn't cost him
anything.
How so?
The bike would be paid for with "theoretical money"
(his term). It works this way....
They'd always been able to pay all their bills, no matter
what equipment they bought. So he figured that
always being able to pay was a given, no matter what
he bought, ie, the business automatically delivers whatever
amount of profit is needed.
That was over 20 years ago. I still rib him about
"theoretical money". It annoys him.
BTW, his degree is in philosophy.
 
Revoltingest

Revoltingest

Pragmatic Libertarian
Premium Member
Shadow Wolf said:
As I tell people I only wound up with a philosophy minor because they didn't have a major.
That's no excuse for making such dunce decisions and beliefs.
Click to expand...
What he should've done is treat college
as a place to learn useful skills....not
spend 4 years & lots'a lucre on what
is essentially entertainment.
BTW, his brother got a degree in "film",
ie, watching movies.

They consult me on all major business
decisions. I give them credit for this.
They give me wood chips. The last
load retailed for $1,000. Woohoo!
 
W

wellwisher

Well-Known Member
Revoltingest said:
Talking to a friend....a Maga recently.
He lamented how bad the Biden economy is.
Trump would fix it.
He said that he wonders why he bothers to show up
to run his business (shared with his brother) when the
company has made no money for years. He really
wants to sell the company or its assets.

I asked how he gets by, because his wife doesn't
work. Oh, he gets a paycheck from his business.
Duh!
The reason the company makes no profit is
because he & his brother take all the profit
as wages. Turns out that they each make a
pretty good living. They just weren't aware
of it.
(Both had liberal arts degrees...no business
courses.)

It shows how some people are so poor at
analyzing a situation. It's the same with his
reasons for voting for Trump. I'll not go into
those, but they're at least as dumb as his
financial accounting skills.
Click to expand...
Wages are part of the cost of doing business. A profit is after all expenses are paid, including wages. A business is not like government where you can borrow and run huge deficits and not be forced out of business. You cannot borrow to give yourself a profit like DNC did with the COVID fund; ripped off the fund.

If you take a wage, but there is no profit, it would be easier to take a wage at another person's business, and not have all the headaches of being the owner. You become part of someone else's expenses and headache, before they make any profit. As a business owner you not only have to pay wages, but match their social security, provide medical benefits, holiday and vacation pay and even retirement options just to attract and retain good employees There are benefits of being an owner, such as writing off your automobile, computers and cell phones as business expenses. Technically that is not considered profit but work expenses.

What has happened with the economy is the Harris and Biden Administration borrowed too much money for boon doggle green energy projects and caused inflation, which then caused everyone to become poorer. People have less money to spend and many businesses flounder. That is why you need experts at the economy, like Trump, and not the B or C Teams like Harris and Walz, who know little about business, other than how to mess all of them up for personal gain. Career politicians who have never had to make payroll have no place near the economy.
 
Revoltingest

Revoltingest

Pragmatic Libertarian
Premium Member
wellwisher said:
Wages are part of the cost of doing business. A profit is after all expenses are paid, including wages. A business is not like government where you can borrow and run huge deficits and not be forced out of business. You cannot borrow to give yourself a profit like DNC did with the COVID fund; ripped off the fund.

If you take a wage, but there is no profit, it would be easier to take a wage at another person's business, and not have all the headaches of being the owner. You become part of someone else's expenses and headache, before they make any profit. As a business owner you not only have to pay wages, but match their social security, provide medical benefits, holiday and vacation pay and even retirement options just to attract and retain good employees There are benefits of being an owner, such as writing off your automobile, computers and cell phones as business expenses. Technically that is not considered profit but work expenses.

What has happened with the economy is the Harris and Biden Administration borrowed too much money for boon doggle green energy projects and caused inflation, which then caused everyone to become poorer. People have less money to spend and many businesses flounder. That is why you need experts at the economy, like Trump, and not the B or C Teams like Harris and Walz, who know little about business, other than how to mess all of them up for personal gain. Career politicians who have never had to make payroll have no place near the economy.
Click to expand...
Trump also borrowed massive amounts of money,
thereby greatly increasing the deficit. Harris will
too, however what happened while she was VP
is on Biden & Congress. She exercised no power.

However, we can agree that one thing she didn't
do is significant in this election...she didn't stage
a violent failed coup (unlike her rival).
 
LuisDantas

LuisDantas

Aura of atheification
Premium Member
Revoltingest said:
This same guy figured that he could have the company
buy a $20,000 BMW motorcycle, & it wouldn't cost him
anything.
How so?
The bike would be paid for with "theoretical money"
(his term). It works this way....
They'd always been able to pay all their bills, no matter
what equipment they bought. So he figured that
always being able to pay was a given, no matter what
he bought, ie, the business automatically delivers whatever
amount of profit is needed.
That was over 20 years ago. I still rib him about
"theoretical money". It annoys him.
BTW, his degree is in philosophy.
Click to expand...
Theoretical money can probably buy theoretical bikes if you have enough of it.

Is it even "theoretically" money if its amount are irrelevant, utterly malleable according to any fancy or immediate convenience?

I'm no financial expert, but I am fairly sure that is not how money works. Even "theoretically".

If you ask me, I will guess that your friend has become too enamored of a personal fiction, fantasy or myth of his own that dictates that he is entitled to certain goods and comforts and has yet to fully realize that fact.

Not an uncommon occurrence, I hasten to add.
 
Revoltingest

Revoltingest

Pragmatic Libertarian
Premium Member
LuisDantas said:
Theoretical money can probably buy theoretical bikes if you have enough of it.

Is it even "theoretically" money if its amount are irrelevant, utterly malleable according to any fancy or immediate convenience?

I'm no financial expert, but I am fairly sure that is not how money works. Even "theoretically".

If you ask me, I will guess that your friend has become too enamored of a personal fiction, fantasy or myth of his own that dictates that he is entitled to certain goods and comforts and has yet to fully realize that fact.

Not an uncommon occurrence, I hasten to add.
Click to expand...
I see it as childish thinking.
Reminds me of something my youngest
sister said when my father said he didn't
have money for something.
"Write a check!"
 
Revoltingest

Revoltingest

Pragmatic Libertarian
Premium Member
Shadow Wolf said:
Just because you don't know how or where it's used doesn't mean its useless or entertainment.
Click to expand...
I do know how he used it.
He never did.
4 years of study that was never applied to anything related.

To spend 4 years & much money, often borrowed,
without regard to how the info gleaned would be
applied is a dumb move. Especially if one gained no
skills marketable enuf to enable paying back the loan.

These guys, with their degrees in philosophy & film
immediately went into lawn mowing, & then tree work.
No education in their chosen fields. They desperately
needed business law, marketing, & especially accounting.
Alas, that lack caused them much grief over the years.

This isn't the Star Trek economy, wherein everyone can
pursue whatever interests them, with no thought given
to supporting oneself. Replicators won't even be for
sale until 2026. And the first models won't even have
a cupholder!
 
Revoltingest

Revoltingest

Pragmatic Libertarian
Premium Member
Shadow Wolf said:
A philosophy degree is a solid start for those who want to be lawyers.
Click to expand...
It's true that studying philosophy can be good
training to do writing, reasoning, & research.
But that's true of pretty much any degree.
Why do you think the actual material learned
studying philosophy is useful?
 
Revoltingest

Revoltingest

Pragmatic Libertarian
Premium Member
Shadow Wolf said:
No, it's because law is heavily steeped and rooted in philosophy. And not only is it a defacto study in law, it's also training for critically examinig and questioning things.
Click to expand...
I edited the post.
Please re-read.
Have an example where studying philosophy
provided a needed foundation for studying law?
Better would be to study a technical field, so
that the lawyer has some diversity of knowledge,
& some analytical tools.
 
Wirey

Wirey

Fartist
Revoltingest said:
Talking to a friend....a Maga recently.
He lamented how bad the Biden economy is.
Trump would fix it.
He said that he wonders why he bothers to show up
to run his business (shared with his brother) when the
company has made no money for years. He really
wants to sell the company or its assets.

I asked how he gets by, because his wife doesn't
work. Oh, he gets a paycheck from his business.
Duh!
The reason the company makes no profit is
because he & his brother take all the profit
as wages. Turns out that they each make a
pretty good living. They just weren't aware
of it.
(Both had liberal arts degrees...no business
courses.)

It shows how some people are so poor at
analyzing a situation. It's the same with his
reasons for voting for Trump. I'll not go into
those, but they're at least as dumb as his
financial accounting skills.
Click to expand...
I work with some of these nimrods. I had an inspector ask me for a raise (he made $180k annually) because he was on the edge of declaring bankruptcy. I told him no, so he quit to show me! I hope his kids like No-Name mac and cheese.
 
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