Below is a common business story:

  1. A person starts a business, becoming a business owner
  2. The owner hires multiple employees
  3. The owner settles upon a bad business model that depends on some combination of:
    1. Swindling customers
    2. Poor quality of life for employees
    3. Violating laws
  4. When the business model is challenged, the owner defends the model by claiming:
    1. There is no other alternative for the business to survive
    2. Multiple people depend on the business for their own survival
  • Those arguments are fallacies


  • Customers, employees, and the government are all entities that a business relates to
    • In this context, Government is a representative of other citizens, with laws that protect one citizen from another

Mutual Benefit

  • When two entities engage in business, they should agree upon a mutually beneficial arrangement

  • A business should provide goods and/or services that are mutually beneficial to both itself and its consumer

  • A business should employ workers that benefit the business and benefit from the business

  • A business should operate in a manner that does not conflict with its surrounding environment and neighbors

  • It is not enough for a business to simply try to benefit others, the benefits needs to flow both ways for the business to be healthy

    • For example, if the business charges customers too little, employees may suffer for it
      • Conversely, hiring an ineffective employee can hurt customers
  • Benefit should be measured as net profit

    • Sometimes a business rationalized its practices by focusing on individual benefits it provides, when those benefits are nullified by larger costs the business requires other parties to pay
  • When a business is not benefiting others, it is hurting others


  • A healthy business with good practices does not need to hurt others
  • When a business needs to hurt others in order to survive, that business is compensating for its own deficiencies
    • The business is cheating to remain competitive


  • If a business is significantly hurting others and incapable of becoming mutually beneficial, it is an inferior business and should be dissolved
  • The dissolution of a business does not need to be catastrophic—often the elements of a dissolved business are absorbed by other businesses
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