Scrupulosity III: More fun at pretending that nothing about the nature of state-created corporations leads to statism
I copy below a few more of my comments on Jeffrey Tucker‘s unhappiness that not all libertarians are cheerleaders for our current model of “capitallism” (see my eariler posts on “scrupulosity“):
Thanks for the great Rothbard quote, Rodney.
Unfortunately, it looks like Rothbard never focussed on the special state grants to those forming corporations that institutionalize Moral Hazard and make them such powerful agents of both corrupting/buying favors from government and at destroying commons. The grant of limited liability got the ball rolling, and things have snowballed mightily, as citizens clamor for ever more government control of our government-created amoral agents.
Regards,
Tom
PS: In addition to my comment above, http://blog.mises.org/17179/scrupulosity-and-the-condemnation-of-every-existing-business/comment-page-1/#comment-784780,
there’s more here:
http://mises.org/Community/blogs/tokyotom/search.aspx?q=cliff+notes
http://mises.org/Community/blogs/tokyotom/search.aspx?q=Limited+liability
Anthony, many corporations are very obviously in bed with government and driving the decisions of politicians and bureaucrats. Are we to pretend that this isn’t happening, or that those in corporations trying to buy government favor have no moral responsibility for their actions?
Are we also to just hope government goes away, instead of fighting for greater freedom and less government favors to corporations?
I disagree: Immodest thoughts: To fix capitalism, we must get govt out of corporate risk-management (rent-selling) business and get shareholders to stop playing ‘victim’ & start paying attention to risks – TT’s Lost in Tokyo http://bit.ly/kNAWFT
TT
June 5, 2011 at 1:23 pm-
“driving the decisions of politicians and bureaucrats”
The only thing that drives the decision of a politician or bureaucrat is that politician or bureaucrat. They are the ones that are holding the guns, not the corporations. If the corporations ask a favor of the state they must offer something in return, because the operators of the state must voluntarily agree to it (no one case force them). Corporations are by no stretch of the imagination in charge of the state.
June 5, 2011 at 6:25 pm-
Incentives, good and bad, drive decisions of all people.
We get poor decisions from politicians and bureaucrats because of moral hazard, the information problem, budgetary incentives, lack of accountability, the information problem and, not least, the pressure and enticements of corporations.
“Corporations are by no stretch of the imagination in charge of the state.”
I think I said: “many corporations are very obviously in bed with government and driving the decisions of politicians and bureaucrats.” Are you denying corporate influence?
TT
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