I think people here are confusing "capitalism", in which those who choose to put the effort and take the risk of innovating / creating / investing can reap great rewards (or if their risk does not pan out, go broke), with "
Modern Corporatism".
These are two entirely different things. When corporations were originally allowed to be formed back in the 1800s, there were some significant restrictions.
This would be unrecognizable today :
- Corporate charters (licenses to exist) were granted for a limited time and could be revoked promptly for violating laws.
- Corporations could engage only in activities necessary to fulfill their chartered purpose.
- Corporations could not own stock in other corporations nor own any property that was not essential to fulfilling their chartered purpose.
- Corporations were often terminated if they exceeded their authority or caused public harm.
- Owners and managers were responsible for criminal acts committed on the job.
- Corporations could not make any political or charitable contributions nor spend money to influence law-making.
"The power of large shareholders was limited by scaled voting, so that large and small investors had equal voting rights. Interlocking directorates were outlawed. Shareholders had the right to remove directors at will. "
Side note : The weakening started in 1819, when SCOTUS overruled some state powers regarding revoking corporate charters. It took them 25 years to re-establish that.
"Over several decades starting in 1844, nineteen states amended their constitutions to make corporate charters subject to alteration or revocation by their legislatures. As late as 1855 it seemed that the Supreme Court had gotten the people’s message when in
Dodge v. Woolsey it reaffirmed state’s powers over “artificial bodies.” "
"But the men running corporations pressed on."
"Government spending during the Civil War brought these corporations fantastic wealth. Corporate executives paid “borers” to infest Congress and state capitals, bribing elected and appointed officials alike. They pried loose an avalanche of government financial largesse. During this time, legislators were persuaded to give corporations limited liability, decreased citizen authority over them, and extended durations of charters. "
"Attempts were made to keep strong charter laws in place, but with the courts applying legal doctrines that made protection of corporations and corporate property the center of constitutional law, citizen sovereignty was undermined. As corporations grew stronger, government and the courts became easier prey. They freely reinterpreted the U.S. Constitution and transformed common law doctrines. "
There was no 2nd chance to re-establish harsh penalties and conditions for corporations.
In essence, corporations bought our elected officials and redefined their purpose and the laws surrounding them. A process which continues to this day. As you can see above, the original corporate structure was a trade-off. In exchange for limiting personal liability, the prospective corporation had to demonstrate that they would benefit the public and was completely disallowed from participating in politics or directing / influencing a "vote" in any way.
The decline from that harsh standard and transition to politically active and influential corporations actually started in 1819, and you can blame the SCOTUS for that.
When colonists declared independence, they also gained freedom from corporations. Since then, corporations have regained control over commerce and the law.
reclaimdemocracy.org
