Theme: Institution

SKETCH – THE CORPORATION AND DEMOCRACY BOTH FAIL?

So, if we know democracy is a failed experiment in government(commons production), and a failed experiment in the economy (good and services production);

And if we know that shareholders are not in fact owners in any sense of the word, but merely claimants on:

(a) rapidly liquid non cash holdings of assets (store of value),

(b) speculative growth (hedging an asset against depreciation),

(c) dividends – when there are dividends (income), and;

(b) the dissolution value of the asset in the cast of failure.

And if we know that bond holders are merely an early position claimant on the income stream. And that bonds produce only defensive returns (hedging an asset against inflation).

And if we know that corporations decreasingly control tangible assets, and are increasingly dependent upon intangible networks, in increasingly complex layers of production.

And if we know much of this ‘scheme’ is insured by the sale of risk instruments, which do in fact protect against minor failures, but produce catastrophic chain reactions when there are systemic failures in the economy.

Then does that mean that we can eliminate the Corporation and S-Corporation, and Double Taxation?

5 – Political Order (The whole range)

4 – CORP (Democracy) and S-CORP (Democracy),

3 – LLC (Hierarchy),

2 – Partnership(Peerage),

1 – Personal Property (Personage).

Why don’t we just create ‘truthful’ instruments for the modern world rather than these legally complicated dishonest instruments left over from the demonstrated failures of the industrial era of family owned companies managed by professionals, and democratic polities governed by senior members of tribes?

If we understand we must eliminate democracies and return to private monarchies, why must we not also eliminate corporations – also democracies – and return to partnerships, with limited liability (LLC’s).

I have seen nothing in board rooms, shareholder meetings, during my lifetime to suggest that this ridiculous experiment with democracy is anything but an overlapping set of lies we tell each other.

I have no idea why shareholders who are too ignorant of anything have any say whatsoever, other than in court of law. I have no idea why we must push all this transparency out into public and pay all these high costs and endure all this politicking, when what we need is simply good record keeping, legal accountability and perhaps bonding of all people within an organization, and vigorous prosecution of offenders. I mean, we overly protect companies as it is. It’s not the 19th century. This is absurd.