This Is Why There Are No
Jobs in America
By Porter Stansberry
Saturday, August 21, 2010
I'd like to make you a business offer.
Seriously. This is a real offer. In fact, you really can't
turn me down, as you'll come to understand in a
Here's the deal. You're going to start a business or
expand the one you've got now. It doesn't really matter
what you do or what you're going to do. I'll partner with
you no matter what business you're in – as long as it's
But I can't give you any capital – you have to come up
with that on your own. I won't give you any labor –
that's definitely up to you. What I will do, however, is
demand you follow all sorts of rules about what
products and services you can offer, how much (and
how often) you pay your employees, and where and
when you're allowed to operate your business. That's
my role in the affair: to tell you what to do.
Now in return for my rules, I'm going to take roughly
half of whatever you make in the business each year.
Half seems fair, doesn't it? I think so. Of course, that's
half of your profits.
You're also going to have to pay me about 12% of
whatever you decide to pay your employees because
you've got to cover my expenses for promulgating all of
the rules about who you can employ, when, where, and
how. Come on, you're my partner. It's only "fair."
Now… after you've put your hard-earned savings at
risk to start this business, and after you've worked hard
at it for a few decades (paying me my 50% or a bit
more along the way each year), you might decide
you'd like to cash out – to finally live the good life.
Whether or not this is "fair" – some people never can
afford to retire – is a different argument. As your
partner, I'm happy for you to sell whenever you'd like…
because our agreement says, if you sell, you have to
pay me an additional 20% of whatever the capitalized
value of the business is at that time.
I know… I know… you put up all the original capital.
You took all the risks. You put in all of the labor. That's
all true. But I've done my part, too. I've collected 50%
of the profits each year. And I've always come up with
more rules for you to follow each year. Therefore, I
deserve another, final 20% slice of the business.
Oh… and one more thing…
Even after you've sold the business and paid all of my
fees… I'd recommend buying lots of life insurance. You
see, even after you've been retired for years, when you
die, you'll have to pay me 50% of whatever your estate
After all, I've got lots of partners and not all of them are
as successful as you and your family. We don't think
it's "fair" for your kids to have such a big advantage.
But if you buy enough life insurance, you can finance
this expense for your children.
All in all, if you're a very successful entrepreneur… if
you're one of the rare, lucky, and hard-working people
who can create a new company, employ lots of people,
and satisfy the public… you'll end up paying me more
than 75% of your income over your life. Thanks so
I'm sure you'll think my offer is reasonable and happily
partner with me… but it doesn't really matter how you
feel about it because if you ever try to stiff me – or
cheat me on any of my fees or rules – I'll break down
your door in the middle of the night, threaten you and
your family with heavy, automatic weapons, and throw
you in jail.
That's how civil society is supposed to work, right? This
is America, isn't it? That's the offer America gives its
entrepreneurs. And the idiots in Washington wonder
why there are no new jobs…
Mr. Stansberry is rather well known on the investment
speaking circuit. He’s a wise man; a good man and in
this instance an imminently insightful man. Job
growth? It is none existent and so long as this
Administration remains in power intact it will remain so.
That’s fair, isn’t it?