Lets review: corporations came into existence because the ruling class needed a way for their inert property (usually land or gold) to participate in a new merchant economy. As Europe made its way out of the Dark Ages, a new social class emerged: merchants. Previously, commerce was conducted primarily on market day, under the careful watch of the local noble, so he could tax transactions. As prosperity increased, as did demand for goods and the need to do commerce on non-market days. Merchants satisfied this demand by buying from artisans, transporting the goods to customers, and re-selling at a profit. They didnt actually make anything, they made all their money by facilitating trade- being the middle man. The aristocracy was increasingly excluded from these transactions, especially when merchants crossed territorial boundaries. The nobles needed a way to get in on the game, without risking their reputation or their velvet tunics. Their wealth was tied to the land and was not increasing. At the same time, merchants needed larger sums of money to initiate more ambitious projects, such as longer journeys of exploration and more ambitious settlement or resource extraction projects. So, the corporation was born, The corporation was not a business or a government entity, but a combination of the two. Its government supporters-- the monarchs-- had the authority to write the trade laws and grant monopolies; its business participants-- the chartered companies-- would enjoy the exclusive right to exploit them. Today corporations continue with a dual role of exploitation of the working class.
Posted on: Mon, 03 Feb 2014 04:03:17 +0000
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