Guys, could you stop referring to the “corporation” as if it had anything to do with the free market??
October 17, 2010 · Posted in Government
This was something I recently posted on reddit.com, and I wanted to share the responses here. So this is what I wrote:
The corporation is a legal entity created by the government to bestow privileges and government protection upon certain people. It allows individuals to invoke the power of the state to avoid taking responsibility for their own actions and for violating others’ property rights. It has absolutely and 100% NOTHING to do with a free market, a system in which everybody’s property rights are respected and protected. It is, in fact the exact opposite of a free market concept. So please … stop throwing the poor free market in one cage with that beast that is the corporation. It’s not a very nice thing to do … :-/
To this I got a lot of intelligent and also some ( yes … I know it’s shocking ;) ) not so intelligent comments.
I wanted to share some of the intelligent comments here:
The point is that by incorporating, you are gaining benefits from the government including: limited liability, federal aid and all sorts of regulatory benefits depending on how many friends you have in congress and/or staffing the regulatory boards. None of which is allowed for in a free market.
Corporation owners do not owe anything out of pocket for damages they inflict on unwitting individuals who did not contract with them at all. Owners are only liable up to the investment they put into the corporation. This is not the case for individuals who damage other people’s person or property. They owe the full amount of the damages they inflict.
In addition, it goes further in some cases, as was mentioned, where some corporations are granted even more special privileges. If you actually kept up with the news, then you would have known that BP, the oil company, was granted a government privilege to have limited liability against torts, beyond the maximum liability of $75 million. Even if they cause $500 million in damages, the owners are only liable for $75 million. That is the kind of unjust limited liability that is being spoken of here.
Unregulated markets have never really existed in modernity. This is a canard that idealist doofs parrot in order to avoid reconciling their axioms with reality.
It won’t ever stop. Socialists will continue using capitalism to refer to corporatism as they make the whole situation worse.