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To: Stock Farmer who wrote (174579)5/14/2003 2:00:08 PM
From: Don Lloyd  Read Replies (1) | Respond to of 186894
 
John,

Clearly you aren't married :o) My guess is she'd demand to be paid $35K

No, 50% of all his assets including a joint checking account.

Seriously though, yours is an example of false economy. Assuming the secretary enjoys a $25K/y lifestyle, either her hubby pays the bill or she earns it. It doesn't materialize out of thin air.

She now gets it in the form of 50% of the profits. You can still pay her a salary from the joint checking account, but it goes right back in without a real effect. There is no thin air required because she no longer has certain expenses of living alone, such as rent, etc., and he may have less entertainment costs.

...irrelevant as far as the wealth of the owner is concerned.

No, in fact the economic unit of the married couple CAN be more efficient than the separate units.

Clearly widgets can be made and sold for a price at which revenue exceeds expenses that may not be possible if the $25K salary is paid.

It is you who entertain the fallacy, although you may be right in some other specific case.

Regards, Don