View Full Version : Difference Between Government and Business
Chris
06-04-2013, 06:11 AM
The difference between government and business is captured in two signs:
Government:
http://i.snag.gy/e6i4g.jpg
@ Those Threatening “Customers” (http://bastiat.mises.org/2013/05/those-threatening-customers/)
Business:
http://i.snag.gy/IiqOF.jpg
@ And the Actual Customers…. (http://bastiat.mises.org/2013/06/and-the-actual-customers/)
jillian
06-04-2013, 06:27 AM
the diffeence between business and government is that business will work to make a profit no matter what deleterious effects its efforts have on the populace, it's workers or our environment.
government doesn't operate on a profit motive so can act in the public interest so long as it's not obstructed
a balance between the two is generally a smart idea
Chris
06-04-2013, 06:37 AM
the diffeence between business and government is that business will work to make a profit no matter what deleterious effects its efforts have on the populace, it's workers or our environment.
government doesn't operate on a profit motive so can act in the public interest so long as it's not obstructed
a balance between the two is generally a smart idea
But a business sans the power of government can only make a profit by providing goods and services consumers want.
That's key, the government doesn't operate on that motive or means, it operates on a power motive by means of force.
zelmo1234
06-04-2013, 07:21 AM
this just outline the misunderstanding that most people ahve about business today!
We were going through the numbers yesterday with out insurance, accounting, and legal staff!
OUr legal firm has a young new want to be lawyer that is interning for the summer. And the Partner thought it might be good for them to see what regulations and the ACA are having on business.
About 2 hours into the debate I see the young man working feverishly on some numbers. He then stated that if we would only raise our rent payments across the board by 175.00 per month, we could break even on the rentals!
Allowing us to keep the same level of insurance, and that a 9.5% price increase on the distribution side would do the same thing for that arm of the company!
Then I would still have the profits from the housing sales to live on and reinvest in the company?
The others at the table laughed at the youngman, in which I was very quick to scold them. In his equation he had forgotten taxes! The profits from the home sales I pointed out are very close each year to our tax liabilities.
Then I too about 2 hours showing him that while we are already the high water mark in l'suxury house and kitchen wares. that increase at wholesale woudl turn into about 15% on a retail floor, putting us out of the morket and reducing sales. becasue many of our customers are wealthy, it would not bebusiness killing but the reduction of 20 to 30% would cause the same number of layoffs and still leave little money for the increase in premiums
We then went through the rental prices in the area and while these are not luxury units he did find that I was on the high end of my price bracket! Turns out he was renting from me as well which I though was funny! So the increase would not be absorbed by the market place, though with the addtions of clubhouses, sporting complexes and unit upgrade it could be done, though there was no area to get the money to provide such upgrades.
When finished he said that in the real business world it is a lot harder that his professors taught in collage, they all taought him that business has the money to provide more for their employees but the take advantage of the public to become more and more rich. For the revenue of your company you sure dont' take a very large portion! What makes you different. When I told him that for theemost part I am not different, his jaw dropped, I could tell that he didn 't want to beleive, but that gate had been opened!
killianr1
06-04-2013, 12:18 PM
government doesn't operate on a profit motive so can act in the public interest so long as it's not obstructed
Government operates on self preservation and power. They do so under the force of law. It has a monopoly on using the law to force you to meet their requirements (whatever they may be at the time.) Business operates on profit. You are not forced to buy their product or service. It is your choice, unlike with the government. In a free market there is a selection of suppliers that you may choose from with products and services commensurate with their costs.
TheDictator
06-04-2013, 12:44 PM
government doesn't operate on a profit motive so can act in the public interest so long as it's not obstructed
Government operates for it own interest.
Sammy the Jedi
06-04-2013, 04:27 PM
Both groups do some good things, as well as some bad things also.
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