Jim Hlavac
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Economic Theory
| Economic Theory |
In talking about the power of the state people will often bring up
large corporations as the same or similar thing. When you talk about
power, and conforming to it, you will hear people say, "well, that big
company there has too much power." Actually the company's power is
of a wholly different sort than a governments. To argue differently is
absurd.
Large companies fail all the time -- and the same people who lament
the loss of jobs and investments are usually the same people who
complain about corporate power. If the corporation was all so
powerful why did it fail?
No matter how large a private company is there is a chance that it
will be bought, flung apart in dissolution, go bankrupt, and utterly
disappear from the scene. It is almost inevitable that large companies
come apart at the seams. For the same reason that the government
cannot ultimately take care of our needs large companies will fall apart.
No one person -- whether leader or corporate CEO -- nor one small
group of people -- the leadership or corporate board and managers --
can keep track of everything required to keep the enterprise running.
The power of a large company can be striped away by changes in
technology, other company's new methods, bad investments of assets,
natural disasters, corruption and theft, by just plain stupidity. No
company is immune to any of these vagaries.
The only large companies that are protected are those that enjoy
the power of the government behind them to avoid failure and the
natural progression of the thoughts of people away from whatever the
failing corporation is offering. Keeping it alive will never be profitable
to anyone.
It is government companies that do not change with the times, but
instead stay mired in the past, the way things were always done, and
thus they stagnate, and are doomed to a never end round of subsidies to
keep them going, and even force against the consumer to buy the
product offered but not wanted, even if that force is somehow causing
other companies to raise their prices, or to limit their offerings through
regulations and laws.
large corporations as the same or similar thing. When you talk about
power, and conforming to it, you will hear people say, "well, that big
company there has too much power." Actually the company's power is
of a wholly different sort than a governments. To argue differently is
absurd.
Large companies fail all the time -- and the same people who lament
the loss of jobs and investments are usually the same people who
complain about corporate power. If the corporation was all so
powerful why did it fail?
No matter how large a private company is there is a chance that it
will be bought, flung apart in dissolution, go bankrupt, and utterly
disappear from the scene. It is almost inevitable that large companies
come apart at the seams. For the same reason that the government
cannot ultimately take care of our needs large companies will fall apart.
No one person -- whether leader or corporate CEO -- nor one small
group of people -- the leadership or corporate board and managers --
can keep track of everything required to keep the enterprise running.
The power of a large company can be striped away by changes in
technology, other company's new methods, bad investments of assets,
natural disasters, corruption and theft, by just plain stupidity. No
company is immune to any of these vagaries.
The only large companies that are protected are those that enjoy
the power of the government behind them to avoid failure and the
natural progression of the thoughts of people away from whatever the
failing corporation is offering. Keeping it alive will never be profitable
to anyone.
It is government companies that do not change with the times, but
instead stay mired in the past, the way things were always done, and
thus they stagnate, and are doomed to a never end round of subsidies to
keep them going, and even force against the consumer to buy the
product offered but not wanted, even if that force is somehow causing
other companies to raise their prices, or to limit their offerings through
regulations and laws.