Preface: “Happiness is the meaning and purpose of life, the whole aim and end of human existence” — Aristotle
Business Profits – The Journey to Bondage or Freedom
Credit: Donald J. Sauder, CPA | CVA
More than two thousand years ago as portrayed in Gospel of Luke, Joseph and Mary went up from Galilee out of the City of Nazareth into Bethlehem to be taxed. While many are familiar with the Christmas story, our purpose of mentioning it in this blog is that Joseph was required to take a mandatory vacation from his likely trade as a carpenter on account of a tax decree from emperor Caesar Augustus. Although the timing with the world-wide taxation decree was less ideal for the couple for whom God had a special purpose, the Wisemen knew it was all according to the perfect plan and additionally that Joseph and Mary were in complete compliance with the emperors tax regulations. For most tradesmen that historic time was supposedly not a journey of happiness or liberty.
Today as we enter 2022, business communities in the United States from east to west, north and south, are enjoying a journey through time that is unprecedented, extraordinary, and exceptional. It is to this cause that we wish reflect from an accounting perspective.
Double entry accounting is an incredible and wonderful invention and widely applied in managing business finances. While all that and more, it also has the ability to aid financial subterfuge. Therefore, the art of accounting is based on a high-level of trust. What business doesn’t want accurate, trustworthy, reliable financial data? While we would all agree on that, what often is overlooked is the underlying unit of that accounting—and more precisely money.
Today, truth be told, while some would agree that typewriters are a business tool for museums, our assumption is that the money we account for with business transaction is stable and timeless. Is that truth? Now, the purpose of this is not to say that any central bank currency, including the US dollar is facing forthcoming doom and that you need to prepare for some type of end; or that only using cash is the necessary. Certainly not. This is not investment advice, and this is not business advice. This is to say plainly and simply that no matter your social affinity, that at present, while enjoying the freedoms of this journey we could quickly see the realization that it is actually financial bondage for scores. If you believe the story of Genesis, then you should consider Proverbs 22:7– The rich rule over the poor, and the borrower is slave to the lender. There is money of kings, there is money of gentlemen, and money of peasants, but debt is the money of slaves – paraphrase of sage words from Norm Franz.
Along this unprecedented, extraordinary, and exceptional financial journey where we see RV’s driven for enjoyment that cost more than a decade of prime-year working salaries of a minimum wage earner, we need to appreciate the while world-wide taxation is not a new concept to history of world civilization, central banking certainly is.
I recently read a book about two adventurers who journeyed the globe in approximately 37 days. One of the most memorable facts of that read for me was that of the million-dollar smiles, accounted on the faces of some happy Asians heading home to their families after a good day of work where daily wages would be less than what some American’s spend daily on a cup of coffee.
Perhaps a people who do not know the history of their successes at present, whether family, community, or financial are likely at risk of missing a big key to their future successes. Likewise as truth has always prevailed in history, we too should continue to believe it will prevail again. Subsequently, do we realize what is financial truth? The reality is that anyone searching for financial truth will realize that being materially subject to “money” risks with perhaps changing tax regulations, increased money printing, or interest rate shifts, we should humbly consider possible expectations if financial truth prevails, and secondly and more concerningly, if we even want it to prevail with freedoms it brings. Yet, if financial truth prevails, will you be in bondage? Any therein is the purpose of this blog.
In closing, the Wisemen knew exactly what journey they had embarked upon, and we should ponder that in our hearts this Christmas Day. Our encouragement to you looking towards the new year is like the angels words to the shepherds — “Fear not!” You too can understand the historical truths of money and its freedom.
God Bless on your journey ahead.