A win-win deal is a contract or transaction where both participants benefit.  Usually this means both parties receive profits.  Here’s a simple example how…

An entrepreneur pencils out a money making enterprise…say an automatic car wash station.  He makes some assumptions, runs the numbers, weighs overhead against projected revenue, and sees a worthwhile profit potential to exploit.  Then he borrows money from his local credit union to get the venture off the ground.

If he’s a good business man, the deal will work out for both he and the bank.  He’ll cover his costs and have a healthy profit to take home.  The credit union will have a performing loan on their books.  But if things don’t pan out, the credit union will take a loss and the would be entrepreneur will have to find a wage job until he comes up with a new – hopefully better – venture.

In private enterprise, win-win deals are commonplace.  What’s more, they bring wealth to the world.  In public dealings, or when an element of political engineering’s involved, win-win deals are humbug.  They don’t exist.  Moreover, they subtract wealth from the world. Continue reading →