The death of the corporation

Its becoming very clear that the corporation isn’t really delivering anymore. Once its charter became more permanent and less subject to review it started to become more and more of a problem and more extractive in particular. Its changed our language in incredibly irritating ways. For instance we not only have “corporate rights” but we have “rights holders,” and worst of all management rights and other silly things like “the needs of the Navy,” Or that money is speech instead of bribery. All of this is akin to superstitious idolatry. Only humans have rights and they are inalienable and universal.

Perhaps the one place the corporation still makes sense is in the case of the small corporation or S corporation. These are the places where we find the entrepreneurial spirit and passion and service motivation and all sorts of wonderful things we’d never want to be without. But its still becoming pretty clear that corporation is not really the way to to spread ownership, not even it is public form. Its also becoming clear that its beginning to core out and impoverish society.

All we need is a simple shift in understanding that says that mid to large companies are properly completely owned by their employees and owned in ways that are free of contradiction. A simple shift int the tax code, like the one that use feloniously by the Fortune 1000 to liquidate private pensions would be all that is needed to make the transition. We change the tax code so that businesses that are not small S corps are at an extreme competitive disadvantage if they do not make the conversion. We also begin to bar such corporations from jurisdiction after jurisdiction. After all if there is one place we need democracy its at work because without it at work we have it nowhere.

We are starting to realize that a democratic work life is a much higher aim than is productivity, profit or efficiency or even effectiveness or competitiveness. This understanding will also bring us to our senses on the global idiotic race to the bottom under globalism. This system that I am talking about is not alien. In fact its rather like the guild system that was in place prior to the advent of corporations. But it will be more just.

This is just part of the constant process of getting rid of the contradictions around money. As such structures take over the media and get clear about the priority of their actual members and the public we will also get the money out of politics. The corporate lobbyist will be gone.

But let us be clear, in these new organizations managers and executives are the only hired help. They don’t get superior benefits or salaries that are more than percentage of their salary. They don’t get stock or stock options and they don’t get to own company stock. They will never be on the companies board. they won’t be working for other companies while employed at the firm or sitting other other companies boards or even have any vestment in outside stock or options unless they want to be fired with cause. They will also likely have to deal with unions, oh use, and unions constructed on the principles of the member owned mutual or coop formats. Yes, just like public employees still Unions to beat down stupid notions like management rights, these firms will still find a use for an instrument beyond the board to knock execs and so called management into line.

And in this age of decentralization and ants we will lean that managements and their silly beauty pad-gents and all their endless self aggrandizement and narcissism hardly matter. Germany already has Rhenish capitalism where labor sits on the boards, but that’s just a baby step. This will be much better and go much farther. Labor will be the owners and the fat cat parasites with the personality disorders will be collecting ordinary paychecks and retirement.

There is no indication that decentralized organizations will work…

Technologically they are feasible, but they could be just as evil as any corporation.

If Bitcoin is any indication there will still be plenty of BS.

If I am running a company do I really want to buy my parts from a vending machine? No – I am going to want to deal with real people with track records, Guys who I can golf with… Too much at stake too often to trust a robot… People can lie, people can stab you in the back, but at least you can read them… A DAO may move on to a higher bidder tomorrow and leave you hanging out to dry.

Corporations exist because too much is at stake to trust just anyone. You cannot go to the supermarket and build a locomotive. It just isn’t going to happen. You need supply chains, contracts, financing engineering etc etc etc. All must work together. Decentralizing something like that isn’t likely to work. 9 women cannot make a baby in a month.

Not what I had in mind. As above the corporation is enriching and empowering the wrong people, giving too much to people who already have too much but contribute little and its doing so at the expense of everyone else.

United Steel Workers just married the COOP Mondragon. That makes sense. As does the free(dom) software arrangement of Maidsafe. As for DAOs, if they get enough of an AI flavor they too will errode the corporation. These new forms of organization simply have less conflicts of interests and less contradiction. They also have better incentives and will be more sustainable. They allow a much better alignment between reward and contribution and make more room for contribution. Most importantly they bring democracy to the work place. If its missing from the work place it missing everywhere else in society.

I heard today a claim that the economy is improving despite a 10 percent decline in the volume of stock market training. That is great. The wholly employee owned firms and unions unionizing big firms and converting them to that format would delist these firms from thr exchanges. The only firms that have any business on the exchanges are the small ones. The big ones should be taken private in this way and delisted. The exchanges don’t spread ownership or wealth if they ever did. Quite the opposite now. We can crowd source or do something better, or use them for the small stocks where the connection between risk and innovation makes more sense.