Simply put, if you loose money you are a social criminal. Your crime? You extracted more from society than you returned. How so? Let me walk you through an example.
One of our competitors, the FlyByNite Aviation Company buys airplanes at $X apiece. They burn fuel at ~$5.00 per gallon. They hire pilots off the street for $20 per hour. And they pull from the economy various other valuable assets whose value is set by supply and demand in our almost free economy. At the end of the year FBNA has taken in $1 million in revenue and spent $2 million. And, based on FBNA’s poor business model, inefficient management, and below average execution, there does not appear to be much better expectations for next or subsequent years. FBNA has removed valuable assests from the economy which might otherwise have been put to good use. Assets that you and I and the rest of the economic system valued at $2 million. And what did they do with them? They produced a service that was valued at $1 million. They destroyed $1 million dollars of value. Personally I think they should do hard time!
Conversely, Virtual Virtual, a company which has developed a software product whose function is not describable, nor comprehensible to anyone over the age of 24, buys a couple of computers, works day and night in grandma’s garage and produces, Voilá! A couple of very cool apps. And by twittering away to generate “buzz,” putting some man-hours person-hours into a great website, and being at the right place at the right time for a first year cost of $500,000 they have $8.43 million in sales. (I think I’m going to puke!) But! And I do mean butt! They have produced a product that many people want and are willing to pay for. Those $7.93 million in profits have created value for society. People (God only knows what kind of people) greatly value VV’s product and are willing to spend their hard earned money on it.
Those obscene profits represent the creation of wealth. They represent creating a product whose value is perceived to be massively more valuable than the sum of the components. The geeks and goons of VV should be considered national heros. They should be on trading cards with the likes of Babe Ruth.
Meanwhile those social criminals at FlyByNite Aviation should be brought before a Congressional Committee Star Chamber and held up for public derision. Tar and feathering is not too severe. They have robbed society! There is no excuse. Make profits, contribute to society, or pay the consequences!
http://www.collegescholarships.org/grants/101-grants.htm
