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.

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.

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.

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

Our interests clash with theirs.

Minus 500,000.

This is 350,000 of net income.

The taxes will be 153,000.

Kill the goose that lays the golden eggs.

A benefit to both our worlds.

I'll just abbreviate that as Nl.

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

Quick example from the corporate world.

We had 200 of expenses.

Go ahead, eat.

And that's my dad found that.

They have no interest expense, because that's not the point of this video.

I asked them all.

He was a good another.

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.

This was interest. This was non op income.

This guy makes what is this?

And then I was left with 1 million.

Why isn't it on every poster across the third world?

And we had no expenses in that month.

Our profit here, if we just take the number that we have here,

This guy makes 21,000.

Are you using historical earnings?

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

Company is 10.

There are also real business benefits.

Look at the people in these photos I've been showing you.

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.

Why make this thing?

All the profits go toward Phillip's hospital bills.

And you might wonder, where does that come from?

Are the profits exclusive of taxes?

And then if you subtract your costs from your revenue, or if you just add these two numbers, because this one is negative, you have your gross profit.

And you'll hear these numbers, gross and operating profit and net profit and pretax profit, and it's very hard to understand that these are actually very, very different things, because they all have the word profit, and what does gross and operating and all that mean?