Thursday, August 9, 2007

The Calculus of Interest-Free Loans and it’s Logical Derivatives or Consequences - Part VII

. Diverging the business interests requires a plurality of agreement between business partners. Corporations have greatly profited by increasing or expanding the market spheres of their business. Never the less, all partners merit the opportunity to consider and weigh invading anther market. An example, a business partner who has responsibility to sow in a certain field, but fails to plant the seed. The loss of the crop clearly damages the potential profits that might have accrued. But ascertaining damages requires a known entity. In this case, the cost of the seed and its relationship to giving charity unto the poor among our peoples. A second comparative case, a person who arbitrarily invests his/her partners shared working capital into other un-related businesses. All business losses become personal debt obligations that this person owes unto his/her partners. While all profits that result from this “horse gambling”, the partners evenly split. . Companies that require transporting their products unto markets. They can either employ their own people who receive a fixed and determined salary for this support work. Or they can employ independent contractors to transport their merchandise. All necessary business expenses, the consumer eventually eats. But businesses that so to speak establish a partnership loan with the consuming public, by shouldering half of these necessary expenses, extends their diplomacy toward establishing a consumer alliance with their products. Salary negotiations require flexibility. Hence, it seems to me that the three opinions of ר''מ ר''י ור''ש compliment one another rather than mutually and exclusively oppose each other. The capitalist who hires employees and bases a salary upon the Torah principals of partnership loans, as opposed to Western fixed hourly wages, elevates the dignity of the employer/employee union. Still the Capitalist labor boss remains the first among equals. For at the end of the day he/she determines who to keep and who to let go. Finding people who can work independently and that do not require constant supervision – employees like this function as a treasured asset to any business. Knowledge of how to work, and work well, not all peoples share this unique ability equally. It’s not reasonable to pay an inexperienced and/or unmarried worker equal and fixed salaries paid unto all workers. The services rendered vs. the risks involved with untrained help in no way compares to talented, experienced married with children employee partners. Simply because a Jew studies Talmud in no way makes him fit to be a Rav. Furthermore, basing a salary scale on principals of partnership loans must also weigh the service of supplying jobs to workers. This act in itself merits a certain appreciation. The workers owe a debt of gratitude to their employer. Salary equations have to weigh human feelings. The purpose and intent of this Torah establishes the principals of partnership loans – or recognition of our shared humanity within the bnai brit alliance. It’s important to remember that this humanity cuts in both directions in employer/employee partnerships.
Salary negotiations require wiggle room. It’s not a simple communism where one size fits all. The risks require consideration. If the business partnership fails all lose. The capitalist employer faces financial ruin, and the workers face unemployment. Business resembles a high wire balancing act. The wise do business with a safety net underneath them, less they fall.

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