‘Megacorporations Are Not A Natural Market Phenomenon’
Monday, 16 January 2006 | 340 readers so far
Dean of the aptly titled Dean’s World has a thought provoking essay you should read:
Furthermore, large corporations like Wal-Mart, due to the artificial advantages that they have over the everyday businessman–you know, an actual PERSON who runs a business, who has a face, who has to answer to people, who has the limitations of a human being–gets squeezed out by these giant collectivist enterprises we call corporations. Which, I remind you again, could not happen if the state had not created the entire phantasmic idea in the first place.
I’m not in 100% agreement with Dean, but I do think he might be on to something. Further thought is required on my part. What do you think? Are megacorporations an artificial construct only made possible because of government’s blessing?
1 January 16th, 2006 at 9:26 am
Papa Ray says:
Large corporations have advantages and disadvantages, some suceed some don’t.
China West (wallyworld) is suceeding, at the expense of many home owned and operated stores in the communities that have them.
Some communities won’t let China West in. That is their decision and in some communities it works out well.
All I know for sure is that America’s base is slowing going away, we borrow our money from China, we buy China’s products, we compete with China on world markets and someday will have to war with China.
If the Islamic Cult doesn’t destroy us first. But if they did, China would be planting their flag on our West coast and claiming all lands to the east and would fight anyone for it.
Papa Ray
West Texas
USA
2 January 16th, 2006 at 7:52 pm
datarat says:
I follow the argument’s logic up to a point. He asserts several times that the corporation couldn’t exist without government support, and I’ll confess that I don’t quite grasp the point.
I’m not a lawyer or really a businessman, but what powers does a corporation have that an individual owner not have, other than the ability to spread the financial risk out to other investor?
3 January 17th, 2006 at 8:09 pm
The Ratnest » Blog Archive » Walmart: Evil Empire or Just a Retailer says:
[...] Yesterday, Trevor over at Will to Exist pointed out an essay at Dean’s World relating to the State of Marylands decision to enact health care spending regulation for large corporations (meaning Walmart). I’m a believer in freedom, including economic freedom. Including the freedom to go poor. I believe in the forces of capitalism, and free trade. Nor do I think anyone has a “right” to pick his neighbor’s pocket. But let’s get a few things straight: Wal-Mart is not John Galt. It is not a person. It is not a natural free-market phenomenon. And the the Maryland legislature is completely within its rights to require whatever it wants of a corporation. Because Wal-Mart isn’t a person, it’s a paper beast that can only exist because the state wills it to exist. [...]
4 January 18th, 2006 at 6:03 am
Barb says:
I went to Dean’s World and skimmed through the numerous comments there. I am not a lawyer, but having been a small business owner before, I know an individual can be the sole person in a corporation, thus reaping the benefits (which in my experience, outway the negatives). I don’t look at large corporations as “artificial.” Yes, government rules and laws allow them to exist, but without some of those same laws, any size business could have a more difficult time existing. I know I sure took advantage of the benefits when I was incorportated.
I also know that Wal-Mart has other ways around this situation. I know of companies, all owned by the same person or group of individuals, that are run as “separate companies” all for the sake of avoiding paying the benefits that larger corporations are required by federal law to pay. One company will “hire” employees for the other company, all to keep the number of employees below the limits set by law to require higher benefits. I am an employee of such a group of individuals, but I admire greatly their ability to “get around the system.” I chose to work for the company anyway, even knowing I would not get certain benefits.
Long story here….I am sure Wal-Mart will figure out a way around this situation…..for the better or worse of MD…I am not sure.