Profit is good. Loss is bad. Profit enables profitable companies to hire more employees. Profitable companies pay many taxes. The more employees on the payroll, they more Federal and States Taxes, the more Sales taxes and the more other taxes the government has hung around our necks. Profit means more other companies can hire more people and pay more taxes.
Loss means layoffs and unemployment. No taxes paid because there is no income generated. Loss makes people grumpy and some to break the law just to be able to eat. Loss does not make momma happy, and if momma is not happy, ain’t nobody happy.
Venture Capital companies take their own money, and sometimes the money of investors, and take a big risk by investing in companies that are doing good, but could do better, and struggling companies that could be profitable. They know by experience that the bigger the risk, the possibility of a greater return on that investment exists. They lose THEIR money because the risk was too great, oh well. They took the chance and it didn’t pay off. That is why more people are NOT in the Venture Capital business.
They succeed in their risk; they get a return on that investment. That is fair. They risked their own money; they should be able to enjoy the benefits of that investment. They also pay State income taxes on that profit AS WELL AS Capital Gains Taxes. Profit good. Loss is bad.
The Venture Capital Company sometimes makes changes in the company they invest in, and that can mean staff is laid off, or let go. That happens every time any company has to do to become more profitable. It’s never a person thing, but a business decision to keep the company going and most of the employees keeping their employment. It is never pleasant, and yes, it can make for some bad feelings. I have been laid off more than once. It is not fun.
When government thinks it knows how to run business better than the business people, regulators are created to make business very difficult. That can also cause people to lose their jobs.
President Obama claims he has a better way than all business people. He is so smart, and has so much experience in running multimillion-dollar business, that he says he will make everything fair. Of course, no one bothers to ask him to define “fair”, just like no one asked him to define “change you can believe in” from the last election. President Obama says he wants to make sure that everyone has a “fair shot.” Again, no one has asked him to define what he means.
President Obama says that Mitt Romney is a bad man because he closed down a steel company and took all the profits of the company for himself. The past president of that steel company says that is not true. Bain Capital, the Venture Capital Company that Mitt Romney once run, actually closed the doors of one of the five companies in that steel company in order for the other four plants could stay open and thrive (that means they made profit and those employees kept their jobs, income and benefits). Why is that bad Mr. Obama?
Let us summarize. Profit is good because it enables the business owner to hire, train and develop employees who earn an income and benefits. When companies prosper, taxes are paid. When Americans are working taxes are paid. When businesses have to shut down because they can’t afford to stay in business because the government has made it too difficult to stay in business and make a profit, employees lose their jobs, have no income and no one is paying any taxes to keep the government running.
Telling lies about your political opponent is really ugly. President Obama does not like Mitt Romney’s experience, but it is far more leadership experience than he had going into office.