We are assuming a very simple world, were the is no taxes, we have no debt, we have no intrest or things

Our starting cash here is 50,000. It's our ending cash of the previous period.

This is really important to pay attention to, because so many people say, oh, a company made this much.

But here you see it means very, very different things.

My head I think implicitly made the numbers work out nicely.

And at least it'll give you a sense of how revenues, gross profit, operating profit, pre tax income and net income really are different.

Our interests clash with theirs.

Minus 500,000.

Many of you probably have never heard of this term.

This is what the owners of the company get before they pay the government.

(Laughter) But I know it's the bottom line, or one's perception of it, that motivates people in the end.

Kill the goose that lays the golden eggs.

If you and I one sell individually what little we produce,

He sees profit in you, so he's with you

A benefit to both our worlds.

I'll just abbreviate that as Nl.

And I won't go into all of the details of an income statement, but any income statement you look at will have this operating profit line.

Go ahead, eat.

And when people talk about earnings of a company, this is what they're talking about.

And that's my dad found that.

He always puts himself first.

And that's what these brands did.

FDlC insured.

The rewards would be... enormous.

So you've probably heard not only the term earnings, you've probably also heard the term earnings per share.

They buy more of your service and they tell more of their friends, which leads to more profit.

And let's say, assume if I inherited this million dollars, I didn't finance it.

Robert got a small proportion of the profit.

Ichiro puts friendship above profit.

The reason this is happening boils down, in my mind, to one basic problem, which is our inability to perceive the difference between public benefits and private profits.

This is 350,000 of net income.

Why make this thing?

All the profits go toward Phillip's hospital bills.

The taxes will be 153,000.

I'm not a charity commissioner.

It's also important to think about what the benefit is.

So now look at the different lens.

Peter The greatest benefit to all.

Science comes first, but business comes a close fucking second.

It is to his advantage.

We're better off without the TPP

There is no doubt about what they have done.

And this is, I think, a perfect example of what Robert Wright was talking about in those non zero sum things.

So, let's see, you have to do 1.85.

Quick example from the corporate world.