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>Do you understand the concept of limited liability? I sure do. But I didn't when I was younger, growing up as a member of the lower class never exposed to bus

>Do you understand the concept of limited liability? I sure do. But I didn't when I was younger, growing up as a member of the lower class never exposed to business. That's why I find it so appalling. The concept of being able to run a business into the ground, maxing out debt, ignoring all reality while paying yourself a paycheck, then just walking away from it in bankruptcy and doing it again is just mind blowing to the blue collar, working class mentality. There's a whole class of people in our society who may or may not provide any benefit, but nevertheless get by making vast sums of money and working in prestigious high paying jobs who have no concept whatsoever of what it means to work for a living is like. The whole system is completely rigged against anyone who doesn't meet that threshold, and I'm increasingly convinced that this is the entire basis of capitalism.

marcoperaza 8y ago
Limited liability is as important to the little guy as anyone else. If you want to open your own store, start your own carpentry business, or run your own taxi, then you should form some kind of business entity with limited liability, such as an LLC. That way, if it turns out that a product you sold is defective and hurts someone, if a staircase you built collapses on someone, or if you get into a car accident, you're only personally on the hook for whatever you invested into the business, not everything you're worth.
- brokenmachine 8y ago
  I'm just a dumb worker, but I would like business owners to be forced to do their absolute best to avoid making dangerous collapsing staircases. I don't know how it would work, I guess they'd have to pay for more insurance. But it seems that the way it is now, everyone has to pay for their ability to move fast and break things. Just throwing ideas around, my economics knowledge is rudimentary at best.
  - marcoperaza 8y ago
    We all benefit from innovation and risk-taking. The advances and comforts of modern society would be impossible without the risk imposed by factories, machinery, and so forth. If starting or joining a business venture meant putting everything you're worth on the line in the case that one employee is negligent, then no sane person would do it. When limited liability is abused, such as when a corporations are undercapitalized[1], then courts can "pierce the corporate veil" and hold its owners personally liable for judgments against the company. [1] Undercapitalization is when not enough assets are kept in the business to pay for its debts or reasonably expected liabilities.

marcoperaza 8y ago

Limited liability is as important to the little guy as anyone else. If you want to open your own store, start your own carpentry business, or run your own taxi, then you should form some kind of business entity with limited liability, such as an LLC. That way, if it turns out that a product you sold is defective and hurts someone, if a staircase you built collapses on someone, or if you get into a car accident, you're only personally on the hook for whatever you invested into the business, not everything you're worth.

brokenmachine 8y ago
I'm just a dumb worker, but I would like business owners to be forced to do their absolute best to avoid making dangerous collapsing staircases. I don't know how it would work, I guess they'd have to pay for more insurance. But it seems that the way it is now, everyone has to pay for their ability to move fast and break things. Just throwing ideas around, my economics knowledge is rudimentary at best.
- marcoperaza 8y ago
  We all benefit from innovation and risk-taking. The advances and comforts of modern society would be impossible without the risk imposed by factories, machinery, and so forth. If starting or joining a business venture meant putting everything you're worth on the line in the case that one employee is negligent, then no sane person would do it. When limited liability is abused, such as when a corporations are undercapitalized[1], then courts can "pierce the corporate veil" and hold its owners personally liable for judgments against the company. [1] Undercapitalization is when not enough assets are kept in the business to pay for its debts or reasonably expected liabilities.