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Corporations have pretty excellent feedback in the form of profits that result from voluntary transactions with customers. The success of a state is measured in
by ksdale 11y ago
Corporations have pretty excellent feedback in the form of profits that result from voluntary transactions with customers. The success of a state is measured in many ways, many of which are disagreed upon and/or take decades to measure. On top of that, no one interacts voluntarily with a centrally planned state in the sense that if the state supplies all of something that is necessary, people will buy it, regardless of the government's prowess in delivering the goods. A corporation will quickly go out of business or change tack if it can't sell goods profitably. I'd say to make your analogy work better we'd have to have central planning where citizens can opt out pretty easily and that opting out causes the government to actually change.
- iwwr 11y agoLarge companies resemble governments in some ways since they have people not directly connected to 'market validation' mechanism: administrators, bureaucrats, people dedicated to keeping thing going etc. Internally, the larger a company is, the more it begins to look state-like and socialistic. Corporations themselves are also in practice intimately intertwined with government. They depend directly or indirectly on procurement, but also the legal system. The more complex regulations, the bigger the economy of scales a corporation can use. There are also specific laws that make competition illegal in some fields like telcos and friendly tax regimes for big players only. You may note corporations are the biggest defenders of free markets when it suits them, then quickly turn the page when they require some special subsidies, bail-outs or laws to hobble their competition.