Corporations are Socialism
July 8, 2010 Leave a comment
When people discover Stop Blaming Capitalism for Socialism’s Failures, or its Facebook Group, some are astonished at the list of problems government intervention has caused, them blamed on freedom of choice.
What often surprises them the most is that it includes the modern corporation.
We’re taught, in socialized education anyway, that corporations are an icon of everything wrong with capitalism.
The problem is that everything that makes a modern corporation has been imposed on us by government laws and force…and that’s socialism.
In fact, you can’t anything like the modern “public corporation”, in a free market.
Why could British Petroleum take risks that no privately owned company would dare? Because it’s effectively nationalized, as a Public Corporation. No owners or managers will be held accountable for the oil spill, not even under Obama’s abrogation of Rule of Law. Likewise any managers or owners in a company selling products it secretly knows are harmful, or fraudulent.
This is why you hear ads on the radio, by The Company Corporation, saying that you should incorporate your business, or to avoid liability for any harm you cause.
In a free market, there would be no way to simply renounce your liability for actions you take, or a company you own.
This can only be done by government fiat.
The very reason that Liberal Democrats pushed for the creation of corporate law, in the US, was to nationalize industries that they could not openly take over.
Since they couldn’t get people to accept an unaccountable People’s Automaking Bureau like you could in China, they simply ensured that existing automakers would become unaccountable bureaucracies owned by People.
In order to get the special treatment of a public corporation, a company must become OWNED by “the public”:
It is not allowed to simply write a custom document of ownership and sell stock to the public, to raise millions in capital. Instead, the company must follow a massive set of regulations, becoming in effect a mini-government. In return for selling out their property rights, its owners and management become exempt from the consequences and liability for their actions, just like government bureaucrats.
Companies that do this, of course, have an unfair edge over companies that do not…so they come to dominate an industry, for example automaking.
And thus, the automaking industry comes to be owned by The People, through a quasi-governmental agency.
Impure, adulterated socialism, called Market Socialism…but socialism nonetheless.