25 January 2011

The function of the corporation is to whick the value away

The essence of the corporation is anonymity. 
Anonymity is the opposite of relationship. The corporation undoes relationship. The limited liability, and the ability for shareholders not to be named, enables the aggregation of financial capital without having to take responsibility for the actions of the enterprise in the real world. The corporation insulates the shareholder from having to engage in the productive endeavor. It also serves as a medium for the shareholders to extract the value without having to engage in the creative aspects of the undertaking. The corporation is an artificial, intermediate creature designed for the sake of extracting value from an enterprise as anonymously and as uninvolvedly as possible. 
By serving as a tool of extraction, it functions best when the enterprise is itself extractive. The proper function of the corporation is to whick the value away, as quickly and as seamlessly as possible, from its deserved source. The corporation is a vehicle for moving value from the deserving to the undeserving. 
That the free market system might eventually return some of the value to deserving factors does not solve the problem. When the deserving factors are rewarded with some or all or more than all of what they earned they get it stripped of their mantle of deservedness, and so they receive what they deserve as equivalent to those who did not deserve their returns. 
The free market is constituted of agents, all of whom are corporations, and none of whom can be said to be deserving of anything. The free market system eradicates the values of deservedness and earnedness, and replaces them with the values of marginal cost equals marginal benefit. 

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