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Edited on Thu Sep-03-09 06:27 AM by CTLawGuy
A fun way to make your slow-witted Republican friends' heads explode.
The corporation is a total creation of government and has nothing to do with the "free market." Without government intervention in the economy (eeek!) the corporation would not exist. Each state has statutes allowing people the ability to create corporations by registering them with the state and complying with certain regulations (more socialism!)
How is the government interfering in the "free market" with the corporation? Well, imagine if corporations did not exist and two people each contriubted $50,000 to start a business (A general partnership). Let's say then, the business (really the two owners as individuals working together) borrowed $10 million to help itself start up. In the "free market" (ignoring for a sec the government interventions that make lending possible) if the business were to fail, the creditor could not only take the assets put toward the business, but ALSO the PERSONAL assets of the owners, NOT put toward the business, in order to recover the unpaid debt. So if one of the people had wealth of $20 mil and the other had nothing, the creditor could take up to $10 mil of that owner's personal assets. (that's the REAL definition of personal responsibility!)
With the "corporation" the government said "Ok, we don't think that when you put $50,000 in a business that you should be risking $10 mil of your personal assets. (Always trying to dodge responsibility) So we will interfere in the 'free market' to stop the creditor (and that guy who fell on your front steps, and those employees to whom you owe back wages) from taking your personal assets if you fail in your business. We will let you create a separate 'person' called a 'corporation' that will have its own assets and the power to do business, including to lend and borrow money. That way the only risk you take as an owner is the money you put in the corporation. We call this the concept of 'limited liability.'"
So really, the corporation is a socialist plot to screw over all the hard working people with whom businessmen and women interact, oh and to kill granny.
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