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The concept of a company is not important to economic and technological progress. In fact, it's actively detrimental to it.
by milesrout 10y ago
The concept of a company is not important to economic and technological progress. In fact, it's actively detrimental to it.
- MR4D 10y agoI'm not sure how you come to that conclusion, let alone your confidence in it. A corporation allows for both pooled and limited risk. This permits a civilization to take on large projects such as building a railroad or a refinery - activities that were both expensive and financially risky. The only other alternative is the State, but then that involves taxes and keeping the populace happy, which tends to impede progress. Things like the Coliseum get built instead of railroads. Individuals have high tendency not to do it because once people have attained a certain amount of wealth, they are more interested in protecting against losses than taking on expensive risky projects. Daniel Kahneman wan a Nobel prize for work related to this kind of decision making (http://www.apa.org/monitor/dec02/nobel.aspx http://www.apa.org/monitor/dec02/nobel.aspx).