On Governments and Corporations…
By Darrell Becker
In order to understand compulsory forms
of governments, which are presently organized within corporate
structures, it is necessary to understand corporations.
Defining the Nomenclature
Corporations –
A corporation is created under the laws of a state as
a separate legal entity that has privileges and liabilities
that are distinct from those of its members. There are many
different forms of corporations, most of which are used to
conduct business. Early corporations were established by charter
(i.e. by an ad hoc act passed by a parliament or
legislature). Most jurisdictions now allow the creation of new
corporations through registration.
An important (but
not universal) contemporary feature of a corporation is limited
liability. If a corporation fails, shareholders may lose their
investments, and employees may lose their jobs, but neither will be
liable for debts to the corporation's creditors.
Despite not being natural persons,
corporations are recognized by the law to have rights and
responsibilities like natural persons ("people").
Corporations can exercise human rights against real
individuals and the state, and they can themselves be
responsible for human rights violations. Corporations are
conceptually immortal but they can "die" when they are
"dissolved" either by statutory operation, order of court,
or voluntary action on the part of shareholders. Insolvency may
result in a form of corporate 'death', when creditors force the
liquidation and dissolution of the corporation under court order, but
it most often results in a restructuring of corporate holdings.
Corporations can even be convicted of criminal offenses, such
as fraud and manslaughter. However corporations are
not living entities in the way that humans are.
Although corporate
law varies in different jurisdictions, there are four characteristics
of the business corporation:
1. Legal personality 2. Limited
liability 3. Transferable shares, and …
4. Centralized management under
a board structure.
The Underlying Logic of
Corporations:
In a general sense, a corporation is a
business entity that is given many of the same legal rights as an
actual person. Corporations may be made up of a single person or a
group of people, known as sole corporations or aggregate
corporations, respectively.
Corporations exist as virtual or
fictitious persons, granting a limited protection to the actual
people involved in the business of the corporation. This limitation
of liability is one of the many advantages to
incorporation, and is a major draw for smaller businesses to
incorporate; particularly those involved in highly litigated trade.
A company is
incorporated in a specific nation, often within the bounds of a
smaller subset of that nation, such as a state or province. The
corporation is then governed by the laws of incorporation in that
state.
A corporation may
issue stock, either private or public, or may be classified as a
non-stock corporation. If stock is issued, the corporation will
usually be governed by its shareholders, either directly or
indirectly. The most common model is a board of directors which makes
all major decisions for the corporation, in theory serving
the best interests of the individual shareholders.
In the United States there are three
major types of corporations: Close, C, and S.
Close Corporations issue
stock, but the amount of shareholders is greatly limited, usually to
less than thirty. Given the small number of shareholders, normally
all are involved in board-level decision making. Transfer and sale of
stock is also tightly controlled.
C Corporations are
the most common type of corporation in the United States. They allow
for theoretically unlimited amounts of stock to be issued, and
usually have a smaller board of directors which make decisions. C
corporations pay taxes both at the corporate level, and at the
personal level, as shareholders pay taxes on their dividends.
S Corporations are
virtually identical to C corporations, save that they have a special
tax status with the IRS. Instead of paying taxes at both levels,
S corporations are required only to tax their dividends--the
corporation itself does not need to pay taxes.
Governments – Forms of
government without attached ideologies.
Authoritarian –
Authoritarian governments are characterized by an emphasis on the
authority of the state in a public or union. It is a political
system controlled by unelected rulers who usually permit some degree
of individual freedom.
Constitutional monarchy –
A government that has a monarch, but one whose powers are
limited by law or by a formal constitution, such as the United
Kingdom.
Constitutional republic –
A government whose powers are limited by law or a formal
constitution, and chosen by a vote amongst at least some sections of
the populace (Ancient Sparta was in its own terms a republic, though
most inhabitants were disenfranchised; The early United States was a
republic, but the large numbers of African Americans and women did
not have the vote). Republics which exclude sections of the populace
from participation will typically claim to represent all citizens (by
defining people without the vote as "non-citizens").
Democracy – Rule
by a government chosen by election where most of the populace are
enfranchised. The key distinction between a democracy and other forms
of constitutional government is usually taken to be that the right to
vote is not limited by a person's wealth or race (the main
qualification for enfranchisement is usually having reached a certain
age). A Democratic government is, therefore, one supported (at least
at the time of the election) by a majority of the populace
(provided the election was held fairly). A "majority" may
be defined in different ways. There are many "power-sharing"
(usually in countries where people mainly identify themselves by race
or religion) or "electoral-college" or "constituency"
systems where the government is not chosen by a simple
one-vote-per-person headcount.
Dictatorship –
Rule by an individual who has full power over the country. The term
may refer to a system where the dictator came to power, and holds it,
purely by force - but it also includes systems where the dictator
first came to power legitimately but then was able to amend the
constitution so as to, in effect, gather all power for themselves.
See also Autocracy and Stratocracy.
Monarchy – Rule by
an individual who has inherited the role and expects to bequeath it
to their heir.
Oligarchy – Rule
by a small group of people who share similar interests or family
relations.
Plutocracy – A
government composed of the wealthy class. Any of the forms of
government listed here can be plutocracy. For instance, if all of the
voted representatives in a republic are wealthy, then it is a
republic and a plutocracy.
Republic – A form
of government in which the people, or some significant portion of
them, have supreme control over the government and where offices of
state are elected or chosen by elected people. In modern times,
a common simplified definition of a republic is a government where
the head of state is not a monarch. Montesquieu included
both democracies, where all the people have a share in rule, and
aristocracies or oligarchies, where only some of the people
rule, as republican forms of government.
Theocracy – Rule
by a religious elite.
Totalitarian –
Totalitarian governments regulate nearly every aspect of public and
private life.
Voluntaryist-Predominant Region -
Sometimes said to be non-governance; it is a structure which strives
for non-hierarchical voluntary associations among agents.
Monopolies:
A monopoly (from Greek monos / μονος (alone
or single) + polein / πωλειν (to sell) exists when a
specific person or enterprise is the only supplier of a particular
commodity. (This contrasts with a monopsony which relates
to a single entity's control of a market to purchase a good
or service, and with oligopoly which consists of a few entities
dominating an industry). Monopolies are thus characterized by a
lack of economic competition to produce
the good or service and a lack of viable
substitute goods. The verb "monopolize" refers to
the process by which a company gains much greater market
share than what is expected with perfect competition. A
monopoly is distinguished from a monopsony, in which there is only
one buyer of a product or service; a monopoly may also have
monopsony control of a sector of a market. Likewise, a monopoly
should be distinguished from a cartel (a form of oligopoly), in
which several providers act together to coordinate services, prices
or sale of goods. Monopolies, monopsonies and oligopolies are all
situations such that one or a few of the entities have market
power and therefore interact with their customers (monopoly),
suppliers (monopsony) and the other companies (oligopoly) in a game
theoretic manner – meaning that expectations about their
behavior affects other players' choice of strategy and vice versa.
This is to be contrasted with the model of perfect
competition in which companies are "price takers" and
do not have market power.
When not coerced legally to do
otherwise, monopolies typically maximize their profit by producing
fewer goods and selling them at higher prices than would be the case
for perfect competition. (Search for Bertrand, Cournot or
Stackelberg Equilibria, market power, market share, market
concentration, Monopoly profit, industrial economics). Sometimes
governments decide legally that a given company is permitted to be a
monopoly, even if it doesn't serve the best interests of the market
and/or consumers.
Monopolies are known for providing the
lowest possible quality of goods and services at the highest possible
price, using price-fixing and violently-initiated force, fraud and
coercion.
You can
separate “governments” by whether they are compulsory or
voluntary.
Compulsory
Governments: Many have the following attributes…
- Methods of joining: Birth within territory, bribery, proof of willingness to self-
indoctrinate with pro-government propaganda, lengthy
examination for desired attributes, some marriages.
- Cost of joining: Paying “taxes” for life, in many ways, being subject to
monopolies of services, being subject to forfeiture of
autonomy, privacy, property and life.
- Cost of leaving: Paying “taxes” for life, in many ways, bribery, being a
potential mark as an “enemy of the government” (patsy).
- Services provided: Many monopolies, virtual control of most industrial,
medical,
agricultural, military, legislative, judicial, and executive
services in the form of corporate conglomerates.
- Level of tyranny: Very high, and rising consistently in most regions. There is
the widespread use of
corporations that have virtual immunity from restituting damaged
parties. Individuals are encouraged to abdicate many
responsibilities.
- Level of autonomy: Consistently decreasing for most regions. Individuals are
encouraged to allow
others to make many kinds of choices for them.
- Use of virtual monopolies in:
A. Violence-Initiating Aggressive Security Services: Yes
B. Arbitration/Restitution (AR) Services: Yes
Type of AR Service: Punitive System
Paid
with “taxes”.
Emphasizes punishment as deterrent.
C. Financial Services: Yes
- Use of slavery: Yes
Presently used in multiple forms, all monopolized.
Examples include but
are not limited to the tactics of “wage-slavery”, monopolized
“black-market” human trafficking, debt-slavery, compulsory
adoption, compulsory foster-care.
There are alternative methods for
individuals to collect together and organize themselves for the
mutual benefit of each individual. The following page has an example
of an analysis of some of these voluntary collective structures.
Voluntary Collective
Organizations (VCOs or Voluntary “Governments”):
- Methods of joining: Various membership levels (subscription costs/contracts) of organizational services, many services provided free to each given geographic region, using voluntarily-contracted agreements, optional services paid as desired.
- Cost of joining: Depends upon each individual drafted contracts of each VCO.
- Cost of leaving: Voluntary contract dissolution, based on member terms.
- Services provided: Few. Local VCOs compete with other local VCOs, and the
ones that provide the best services
at the lowest prices with
the most regularity
generally succeed at maintaining good subscription numbers within
their geographic region. Most VCOs help to coordinate information
between primary service providers (such as security and
arbitration/restitution services) and enhance communications and
tactical organization of
the needs in each
region, to allow for enhanced service provisions. Most
services and products are privately provided by a wide array
competing service providers and producers.
- Level of tyranny: Low. No use of corporations, individuals are responsible.
- Level of autonomy: High. Individuals make all choices for themselves.
- Use of monopolies in: A. Violence-Initiating Aggressive Security Services: No
Many individual
companies, each voluntarily providing armed security, surveillance,
communications and tactical support. Competition without
hierarchical monopoly gives the highest quality service at the lowest
possible cost, frequently win-win for all parties.
B. Arbitration/Restitution (AR) Services: No.
Type of AR
Services: Restitution-Based Systems Many individual companies,
each voluntarily providing arbitration and restitution.
C. Financial Services: No.
Many individual
companies, each voluntarily providing systems of secure trade in
local and distant commodities using a variety of local and regional
forms of currency, money and equity.
- Use of slavery: No.
The Underlying Problem:
The Practical and
Present Day Applications of Tyranny
Introduction
Tyranny
seems to be the result of
an inequality of the
superiorly-applied
tactics
and advanced practical applications of compulsory control
methods
(such as monopolies) used by psychopathic
individuals in key positions
of power against
the majority of individuals within specific geographic regions.
If it ever happened
that all of the tyrannical, psychopathic individuals in key
positions of power and influence right
now were suddenly (somehow) gone, and one
speculated upon the world that would be
left to the remaining individuals (without the
present-day methods of tyrannical
control being wielded by the tyrants of today), the
needs for order and security,
arbitration and restitution, and many present-day
monopolized services would likely
become universally perceived as deficient in
organization. This would be likely to
help provide a reason for collectives of people to
call for increased order, security,
arbitration and restitution. Here are two different ideas
of managing a world in which there were
no psychopathic tyrannical individuals
occupying key positions of power and
influence.
There is an idea
that the best and most proven way of preventing any potential
future tyrannical psychopaths from ever
attaining power again (individuals who are
in any way similar to the ones who are
presently in key positions of power, controlling
the service monopolies of military,
government, industrial, financial, media and
ecclesiastical compulsory collectives)
is to use control mechanisms similar to those used
by the present-day ruling class. This
includes using methods such as corporate-chartered
governments, democratically selected
and divisive-appearing but financially intertwined
political parties and hierarchical
power monopolies listed above under “Compulsory
Governments”. These methods are
supposed to be able to successfully protect the non-
psychopathic minority from the violence
of random psychopaths (all of this to be
occurring in a hypothetical future
without the present psychopathic presence in the
previously mentioned service
monopolies). It is claimed that it is necessary to use these
same methods (that the psychopathic
minority in power presently use upon the non-
psychopathic majority) because this is
assumed to be the best way to provide the service
of protection against the inherent,
violence-initiating aspects of “human nature”. Human
nature is being assumed as having been
proven to be the fundamental cause for producing
most violent aggressors that people in
any given region encounter. This causes a further
perceived need of protection services
to be under the control of a monopolized hierarchy,
but this time (unlike any
other time in history) with functioning safeguards (so-called
checks and balances) in place that
would effectively prevent psychopathic individuals
from ever again entering the
previously-mentioned key positions of power and influence.
There is also an
idea that a massive increase in a multitude of voluntarily
subscribed-to systems of
self-sufficiency, benefiting most individual’s and local
community’s needs, would rapidly
increase most individual’s and community’s
autonomy and security, while
simultaneously decreasing all forms of regional tyranny.
This method of voluntarily forming
collectives of individuals that use cooperative (rather
than coercive) methods of self-support
(and mutual support) is alleged to be an effective
tactic to deliver services and produce
products that compete with monopolized services
and products. Eventually, compulsory
governments, and the corporations enjoying
the present-day monopolized benefits of
most of today’s goods and services, are left
without any support at all, as a
majority of individuals either provide for their own and
their neighbor’s needs or depend upon
voluntary (and competing) local and regional
collectives who provide goods and
services of the highest possible quality for the lowest
possible price. It is further alleged
that (after the tyrannical monopolies vanish) many
services and products will be produced
for little or no cost, as the lack of tyrannical
monopolization that presently prevents
various services and products from existing are
either ignored, superseded or otherwise
ameliorated with voluntarily-provided contractual
services, with any disputes effectively
being arbitrated by pre-agreed-upon voluntary
mediation services. As tyranny
decreases and individual autonomy and collective
harmony increases, more individuals
will be in a position to be generous. They will be
more likely to voluntarily help those
who have been unable to effectively provide for
themselves and their family, due to
extenuating circumstances (such as damages they
have sustained from the
previously-mentioned monopolized services, which had provided
the lowest quality for the highest
price).
Here
is one equation to measure levels of tyranny and autonomy:
- Identify the individual parts of a system or situation (such as a government, corporation or collective). This is done by isolating the factual and practical name of each part, in such a way as to remove euphemisms and double-speak. (For some examples: taxes = compulsory “dues” paid by individuals in a geographic region to local, monopolistic security and protection “service” providers; regulations/statutes = the initiation or threatened use of violent force, fraud and/or coercion to promote or dissuade various activities, services and products; bail = ransom paid to local, monopolistic arbitration/restitution “service” providers, etc.)
- Identify the logical rules governing interactions between the individual parts. This is done by isolating both:
A. The
Ostensible Rules, the mythology and public relations story
about the mechanisms of civic, judicial and compulsory collective
decision-making processes and enforcement methodologies.
B. The
Practical Rules, what occurs in practice and can be verified
to
exist in reality.
- Use Non-Violent Communication3 tactics (NVC) upon one’s own self. Isolate your own feelings, isolate needs that are likely causing particular feelings, isolate creative methods of meeting those needs without causing or advocating harm to other individuals through the initiating of violent force, fraud and coercion.
- Apply the Trivium7 method, studying the special and general grammar (or parts of systems and mechanisms, such as in Step 1) in such a way as to remove contradictions and gain clear definitions. Use a list of at least 42 informal logical fallacies8 to see if questionable methods of persuasion and rationales are being utilized (such as in Step 2). Analyze the parts and logical rules using the rhetorical triangle.
This is one method of measuring
autonomy and tyranny. The beginning of wisdom is said to be gained
by the process of calling things by their true name.
FURTHER
READING FOR ELUCIDATION
Books in
Print
| Adventures in Legal Land by Marc Stevens | |||||||||||
| Anarchy and the Law: The Political Economy of Choice edited by Ed Stringham | |||||||||||
| Common Sense by Thomas Paine | |||||||||||
| Complete Liberty by Wes Bertrand | |||||||||||
| The Constitution of No Authority by Lysander Spooner | |||||||||||
| The Creature from Jekyll Island by G. Edward Griffin | |||||||||||
| Defending the Undefendable by Walter Block | |||||||||||
| Democracy: The God That Failed by Hans-Hermann Hoppe | |||||||||||
| Economics in One Lesson by Henry Hazlitt | |||||||||||
| The Enterprise of Law by Bruce Benson | |||||||||||
| For a New Liberty by Murray Rothbard | |||||||||||
| Healing Our World in an Age of Aggression by Mary Ruwart | |||||||||||
How I Found Freedom In An Unfree World by Harry Browne |
|||||||||||
| I Must Speak Out: The Best of the Voluntaryist edited by Carl Watner | |||||||||||
| The Law by Frederic Bastiat | |||||||||||
| Liberalism In the Classical Tradition by Ludwig von Mises | |||||||||||
| The Machinery of Freedom by David Friedman | |||||||||||
| The Market for Liberty by Morris & Linda Tannehill | |||||||||||
| The Myth of National Defense edited by Hans-Hermann Hoppe | |||||||||||
The Politics of Obedience: The Discourse of Voluntary Servitude by Ettienne de La Boïttie |
|||||||||||
| Power and Market by Murray Rothbard | |||||||||||
| The Production of Security by Gustave de Molinari | |||||||||||
| The Road to Serfdom by F.A. Hayek | |||||||||||
To Serve and Protect: Privatization and Community in Criminal Justice by Bruce Benson |
|||||||||||
What Has Government Done to Our Money? by Murray Rothbard |
|||||||||||
| You and the State by Jan Narveson | |||||||||||
Your Money or Your Life: Why We Must Abolish the Income Tax by Sheldon Richman |
|||||||||||
| The Voluntary City edited by David Beito, Peter Gordon & Alexander Tabarrok | |||||||||||
Websites for
Definitions
The following sites
were used for the nomenclature part of the beginning of this essay:
www.oed.com
(Oxford English Dictionary)
1http://en.wikipedia.org/wiki/Argument_from_consequences,
http://www.lewrockwell.com/orig6/molyneux7.html,
http://anaphilo.wordpress.com/2009/12/15/the-argument-from-effect-and-why-its-counter-productive/
, http://www.wku.edu/~jan.garrett/arganals.htm,
http://www.lewrockwell.com/orig6/molyneux6.html
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