Quote:
Originally Posted by Dadhawk
I'm assuming you do realize the risks these folks took to get into the position you describe, correct? .
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Yes. They are both my friends personally and my clients professionally.
I am not arguing there is no risk nor that business owners don't carry risk. Do not misinterpret what I write. I am a former sole-proprietor and operator of an LLC as well. I know many small business owners that used their own personal capital to create and operate the business and it is their sole source of revenue - but my original statements were not about them at all. It was specific only to qualifier "multi-millionaire business owner." It also doesn't ONLY apply to entrepreneur demographic either as the core of my argument was that system exists such that the tools and means to mitigate or eliminate risk grow as one's income grows and those who are often the labor (employees) are at greater risk due to their financial reality and thusly carry the real burden of what can arguably considered "real risk". It's not just risk endured by the labor force in failiure of the company either, but also that same labor force is as risk when the company finds efficiencies to be further profitable. An increase in efficiency almost always results in a reduction in the need of human capital. Example - in 5-10 years when AI trucks displace the million+ truck drivers - the owners of those trucking companies will be wealthier than ever but the majority of the truckers will be unemployed with no alternate skill set to generate revenue - in that industry those truckers carry ALL the risk.
Also, most of the folks I know, with some exception, carry very little risk - their business entity may have taken risk - but not them, not their personal assets and that's because they used other people capital to initiate their enterprise and like the smart capitalists they were, the UBI borrowed that money, carried that risk...not the individual. The small biz owners who are sole-proprietors using their own capital for both finance and operations - yeah, they're LOADED with risk but they usually have <5 employees but my other friends businesses are funded by OPM loaned to the UBI so their business could be dissolved in bankruptcy court and none of their personal wealth, savings, retirement or other revenue streams would be impacted - unlike their employees.
It's all about calling a spade a spade. The concept that the owner/CEO etc, "carries all the risk" is a long proven fallacy. For those that don't understand that, I have a golden parachute to sell you.