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RE: Adsactly Education - The Marriage of Democracy and Capitalism

in #education6 years ago

"One of the absolute keys to Capitalism is corporate security for business." I take issue with this statement. One of the keys to the current system? Absolutely. Key to capitalism? Not necessarily. Corporations aren't even a byproduct of capitalism, they're a byproduct of the state. By law, they must be chartered for the primary purpose of earning profits for shareholders (taught in freshman year financial accounting in business school). Also by law, they must limit the liability of the shareholders, often extending this limited liability to corporate officers and lower level employees. The point I'm making is that I believe that a large part of the sickness within our current system is due to the legal framework surrounding limited liability, collectively owned, for profit entities. In essence it's a socialization of the costs (limited liability) and a privatization of the profits (profits go to shareholders and corporate officers mostly).

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You and I are in full agreement. Will the US pull it's head out and make corporations be just business? A lot of our representatives have been duly bought and paid for...