Wednesday, February 26, 2020

Another Problem with Capitalism

Another problem with Capitalism is that "Nobody is responsible." Prior to 1850 the Corporate business structure was illegal in the USA. In those days, the company was owned by a person and if the company committed a crime the owner was personally liable. After the establishment of corporations and a series of court cases it was decided that "The corporation is a person under the law." Therefore, the corporation could commit crimes and no member of the Governing board of Directors would be personally liable. The corporation as a whole would be "punished" by fines and restrictions if necessary. This arrangement has continued to this day. A corporation can commit crimes and cause injury and no person has any liability. The pharmaceutical industry is a good example presently, when the "rush to market" for new products has caused harmful drugs to be sold in numerous cases. Other industries have similar stories and in no case is any person ever held liable for the injury, monetary loss, or death that were caused by the corporate action. In my opinion this "lack of penalty" for corporate board members has contributed significantly to the economic disparity in the USA, shoddy workmanship, and the "potential danger" of many commercial products.

copyright (c) 2020
William Schaeffer

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