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Old 07-26-2019, 04:11 PM
Wrenching Spanners is offline
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Join Date: Jun 2011
Location: London
Posts: 538
Quote:
Originally Posted by Crane View Post
The topic is personal responsibility in the context of Conservative values. If personal responsibility is a conservative value then Conservatives must reject the corporate form because the corporate form is constructed to eliminate personal responsibility. It is their purpose, not the result of 'failure'.
My bolding. This statement is both true and naive. A purpose of corporations is to limit the liability of investors. If I invest 1000 in an incorporated shipping voyage, if that voyage goes bad, then I lose my 1000. However, I'm not on hook to the banks that loaned money to the corporation to charter and fit out the ship. The banks have taken on the risk that a voyage may go bad, and accordingly charge a higher rate of interest. Offsetting their risk is that with the existence of incorporated voyages, more ship voyages will occur and the banks have more opportunities to issue loans and receive high-yield interest payments.

I'll agree that this reduction in individual risk equates to a reduction in individual responsibility. However, if you think that's a bad thing, you're arguing against over 400 years of history.