Uncommon Sense: Freedom vs. Markets

Memo to Richard Nikoley:

The essential defining characteristic of a corporation, as against other ways of organizing a business enterprise, is liability limitation, a conspiracy between the proprietors and the state to defraud tort claimants of all they might otherwise obtain in redress for their injuries. It's pure Hamiltonian Social Engineering, Mercantilism at its worst. The idea is to encourage investment by limiting the risk. But by limiting responsibility, investment is distorted away from the individual integrity that is the sine qua non of enlightened self-interest. The limited liability corporation is the rope by which Capitalism hung itself.

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