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> why business owners are entitled to the surplus value created by their workers’ labor. Because they are the ones taking the risk. People love to demonize com

> why business owners are entitled to the surplus value created by their workers’ labor. Because they are the ones taking the risk. People love to demonize companies, but they fail to acknowledge the thousands of companies that have failed, taking the owner’s capital with it. There is a survivorship bias because all of the companies we hear about are generally making a profit, but there are countless companies that have failed. So why should the owners get the surplus? Let’s ask another question, why should owners have to suffer loses? Owners are on the hook for loses, why shouldn’t they benefit from the surplus?

ryanobjc 8y ago
This is easy - because of limited liability. Technically owners aren't on the hook for losses, LLC structures and LLC-like structures (C-corps) limit the loss possible. They are only risking what they put up - presuming they don't break the law - and nothing more. Another system would penalize investors and owners of companies for all potentially likely damages downstream of their activities. Before you argue the world is like this, let me just ask you why do superfund sites exist then? Because of limited liability.
- vonmoltke 8y ago
  > Before you argue the world is like this, let me just ask you why do superfund sites exist then? The vast majority exist because the operations predated environmental regulations. Also, a significant number are a result of government activities at various levels.
  - ryanobjc 8y ago
    ... and the original organizations aren't held liable for the sites. In many cases the companies aren't around, but the investors, and the investor's estates are. The point being that LLC has shielded people from the consequences of their actions.