No, it does. You don't think it does because you either haven't looked at what happens if limited liability doesn't exist or you are assuming that we can make t

No, it does. You don't think it does because you either haven't looked at what happens if limited liability doesn't exist or you are assuming that we can make these changes with no consequence. Well we can't just micromanage everything perfectly. If you change this, the liabilty doesn't just magically disappear. You will see firms collapse into themselves, and that risk will move to managers and employees. It moves to managers because they are the only ones who will take the risk (i.e. we have no principal/agent problem, everyone is a principal) and it moves to employees because that system is incapable of bearing the risk (do you understand that wage labour didn't exist until the late 19th century...before that point, you had union gangmasters who were paid by piece and putting out...again, what we would call employees today bore substantial risk). Again, it moves risk from those able to bear it to those who cannot (the system we have is enormously favourable to employees, and very disadvantageous for employers...the reason people think the opposite is because they don't know what the world was like before this). Srs, this site is one of the worst for people with no knowledge telling you something they have no understanding of with absolute authority. Read a book on pre-20th century economic history...there is a reason why we got here, it is called progress.