Just going to note here that in this mini-example you claim it’s fair to give the cookie to the individual who did the task of creating it. No. I am speaking toward the ‘owner’ of the cookies. It does not matter if they were created by you personally. EASILY paid you to make them, They are owned by me, not you.
Your labor would have already been compensated in what I paid you to make them. There’s an improvement between legal and moral however. There sure is and what is moral is perfect for debate without agreed to standard up. Legal though is well defined and based on the commonly decided to morals theoretically. In the cookie example, the individual who does the work morally deserves the cookie.
Not if these were paid by someone to make sure they are. See, the nagging problem is that not only does work make money, money makes money. This is true entirely. The reason why money makes money is that individuals need money to do things plus they don’t possess enough of it personally. Therefore, people make investments (buy into) businesses to provide them money. This possession buy-in is a risk.
Just ask the stockholders of Enron about risk and losing money. You are neglecting this ‘risk’ to be valuable. That risk is characterized in loans by the interest charged. People give others money on the pretense of making additional money later now. Obviously, money doesn’t magically generate money.
The money that is produced by investments and stocks and everything is in fact value that was generated by someone else’s labor at one point or the other. Nevertheless, you see, the labor deal is also about risk. If you don’t want to pay this value for an employer, you need to be self employed and provide the various tools and materials to make value and then take every one of the risks to sell that value/product for a profit.
- 10 years back from Sri Lanka
- Is my investment better positioned with an increase of successful football clubs
- Single investments (one-time debris)
- Know the person you are speaking to
If you do that, you keep 100% of the value you created. In order to gain more cookies, we decide to sell cookies to other folks with which we can purchase more elements. I provide the initial cookies to market. Predicated on that contribution, I argue that it is fair for me to get 50% of most cookie profit in perpetuity, thus making sure I have more cookies than you without doing actual work. That is not typically what the preparations look like.
The better characterization is that we go directly into business to bake cookies. I provide all of the initial money to choose the supplies needed, the gear needed, and the facilities had a need to open. For this, I get a particular ownership stake available – perhaps 50%. The formula is provided by you and labor to run it. For this, you get a portion of the business enterprise as well.
For perpetuity, the gains paid to owners (not salary) would be split predicated on the possession stake. So yes, since I put up all the money to choose the needed starting points, I get my cut for the risk I had taken. That long-term incentive is the benefit of the amount of money I put at risk. In the end, if the cookies don’t sell and the business enterprise fails, I don’t get my cash back.