The Theory of the corporation

[Jim Choate]

On Thu, 12 Apr 2001, Tim May wrote:

> I like to think of the issue in terms of "coercement."

Of course you do...

> Though some folks claim they are in some sense "coerced" to buy 
> certain products, or shop at certain stores, or pay "high rents," 
> this sense of coercion is not at all the same as having someone say 
> "Do this or we shoot you."

It depends on what the alternatives are, if there are none then there
isn't a lot of difference. How gilded the cage is isn't a relevant issue.

> (The gifted writer P.J. O'Rourke has cast this in the form of "Would 
> you have your grandmother shot for this?")

> I know of two general classes of agents who do this:
> 
> -- the Mafia
> 
> -- the government

> Government quickly evolves in nearly all cultures to a thugocracy. 
> Sometimes the mailed glove is covered with a fine glove, sometimes it 
> is more obvious.

'nearly all'? That's a laugh. It happens in all societies because people
are wired that way psychologicaly.

> The move away from "coerced transactions" is what characterizes a 
> free society. A classically liberal society.

If one defines 'free' as lacking coercion. Of course you can't have any
sort of human interaction without 'coercion' at some level. If it's not
physical, then it's economical, if it's not economical it's religious, if
it's not religious it's racial, if it's not racial it's what sports team,
if it's not a sports team it's emotional coercion via a SO. If it's not
that then it's self-imposed psychological 'benchmarks' we all pick up and
try to measure ourselves against. If it's not one thing, it's another.
People are about manipulating other people.

All the anonymous reputational capital crypto-anarcy crap in the world
won't change that, and it won't protect the weaker from the strong (of
course that concept is completely alien to 'free market' economists and
supporters of David Friedman's ilk).

> Saying corporations are the main problem is, as Declan says, naive.

You should also talk to Declan, you have a future in the 'press'.

Nobody is saying they are the main problem. What they are saying is that
from a 'power broker' perspective, there ain't no difference. And they'd
be right.

> Neither Intel or Microsoft can imprison people for not buying their 
> products. Neither can threaten to kill those who use Macs. Neither 
> can force tax slaves to pay for their new factories.

Not now, but how long would it take them to move if they thought there
weren't other organizations that would intercede? Not very long.

As usualy you mispresent 'free market economics' as some sort of panacea
that will elliminate 'government abuse' and give us a 'coercion fee'
society. Bullshit. we'd only be trading one tryant for another. Just look
at the history of the 'company store'.

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