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Companies didn't 'keep' hierarchical power structures, companies emerged exactly from that separation of industry and state.
by OJFord 1y ago
Companies didn't 'keep' hierarchical power structures, companies emerged exactly from that separation of industry and state.
- martin-t 1y agoOne theory I read is that historically states got bigger only up to the limit of their ability to manage the land and force people to pay taxes. I don't know if it's right or wrong (and to what extent, most natural systems are complex with a multitude of factors influencing them) but I can easily imagine a similar principle applying to companies. If you wanna expand by starting an office in the next town over, you need a way to communicate with it, otherwise it's just a separate business with a cash injection to start. So you have a point. But the core issue stands - the power hire/fire people, determine their salary and also capture their entire economic output leads to a power imbalance.