What Happens When Money is On the Line

There’s a big segment of Americans who have a problem with people making a lot of money. They forget that other people making money does not affect them making money.

Just because Bill Gates is a multi-billionaire does not take money out of my pocket or reach into my bank account.

In fact, it’s people like Gates and the late Steve Jobs whose companies have made life easier and less expensive for all of us with no government interference. If you hate Microsoft, you can buy an Apple product, and vice versa.

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Take a look at this short video comparing the pit crews of 1953 and 2013 and ask yourself this question: What made the difference?

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Money is on the line. As the competition increased over the years, and every second counted, improvements needed to be made. Time is money when it comes to changing tires in professional racing.

No government had to tell these crews to do this. It was competition with money on the line that made the difference.

Making money is an incentive. No company can stay in business if it does not turn a profit. Not everybody who wants to make money produces something that consumers want or need. It’s not the desire to make money that actually makes money.

People have to want a product or service and be willing to pay for it. The exchange of money for a service or commodity is equal. The seller is willing to sell his product or service for a certain price, and you and I are willing to purchase it.

No one forces us to buy a certain phone or computer. There are millions of people who don’t even own a cell phone or computer. No one is forcing them to purchase either of them.

Competitors enter the market and offer more services and better devices at a lower price. It happens all the time. Who benefits? Consumers, even though the companies selling the products and services get rich in the process.

While the companies making these products make a lot of money (actually their stock holders who are partial owners do), costs keep coming down while features are added and improved.

“Guido’s Revenge” from Pixar’s Cars:

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