You go to Burger King today and you buy a Whoper Junior for $1
The real cost of this burger is $10
$ 1 is for Warren Buffet (He is one of th biggest shareholders of Kraft)
$ 1 is for Warren Buffet again (He is among the largest shareholders of Heinz)
$ 1 is for me (You are not truly a Mexican if you do not hold at least one share in Grupo Bimbo)
$ 1 for the man growing the tomatoes
$ 1 for the person growing the pickles
$ 1 for the man growing the lettuce
$ 1 for the guy growing the onions
$ 1 for the truck driver really moving all these things to the dining establishment
$ 1 for the guy doing the cool TV commercials like this one:
$ 1 for the Hamburger King shareholders due to the fact that they need to consume too.
This is the theoretical distribution where everyone gets a reasonable share of the earnings and NO ONE IS LIVING IN POVERTY.
I am spreading out all the wealth equally for simpleness purposes. Some may say the guys selecting the tomatoes in California ought to get $2 due to the fact that it’s a great deal of hard work and other may state the guys shooting the ads in Hollywood should get $3 due to the fact that you need a sound man and an editor and a star and director and $1 is not enough to endure if you split the revenues between 100 people however let’s keep things easy for now.
The truck man desires more cash.
When I state the truck guy I imply Federal Express, DHL and UPS.
These three billionaires are not happy with $1 per hamburger.
They desire $3 per hamburger for themselves.
You can not simply increase the price of the burger from $10 to $13 due to the fact that you would sell less hamburgers and you would wind up with less money rather of more cash.
You can only make more money if you a STEAL $2 from the rest of the men actually building the hamburger.
Here is the evil plan taken directly from the truck person’s computer servers:
- Let’s purchase the onion farm from the existing onion owner (Most likely a farmer) and fire all the existing employees working there for $1 and replace them with unmployed employees and pay them just $0.50 We are so clever! We can now make $1.50 instead of $1.0050%of our task is currently done.
- Let’s purchase the tomate farm and the lettuce farm from the present tomato and lettuce owners (Probably 2 farmers) Let’s minimize the salaries from $1 to $0.75 and we are now making $3 each time we sell a burger. Who cares if the farmers are now earning less cash? That’s not our problem. We did not put a weapon to their heads and force them to sell their farms.
Now we are in the country club.
” That’s an extremely nice Rolex. How did you purchase that?” States Warren Buffett to the truck man.
This is back in 1970.
” I went to Mexico and acquired a lettuce farm from a dumb Mexican farmer for $1,000,000 He was so pleased, he has never ever seen that much cash in his whole life”
” A million dollars is a lot of money, how are you going to pay your Wells Fargo MasterCard?”
” That’s the creative part. I fired all the employees and I hired new ones and I am just paying them $0.50 for each burger and I use the additional $0.50 to pay Well Fargo. Ultimately, I will be debt-free and I will obtain a $2,000,000 loan to purchase another two tomate farms from the silly Canadians and possibly from the dumb farmers in Argentina”
” I see.”
Warren Buffett leaves the country club and he now has his own strategy to take $1 from the milk person (You need milk to make cheese) and from the wheat man (You require wheat to make bread)
Quick forward to 2016 and we have the whole world residing in poverty and Warren Buffet has 365 Rolex on his bed room.
He can actually wear a brand-new Rolex watch everyday.
By the way, I am buying used cars to offer on eBay. Do you have one that you can sell me? I will pay you countless dollars for your car
By the method, I am buying houses in your location to rent on AirBnb. Do you have one that you can sell me? I will pay you numerous countless dollars for your house.
By the method, I am buying small restaurants in your area to tear them down and develop a McDonald’s there. Do you have one that you can sell me? I will pay you millions of dollars for your little dining establishment …
It’s a domino effect.