Anything changed? | In 2002: Of the 100 largest economies in the world, 51 are corporations

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Occupy Wall Street ‏@OccupyWallSt 3h

Anything changed? | In 2002: Of the 100 largest economies in the world, 51 are corporations, only 49 are countries. http://bit.ly/10hjv4B


http://www.globalissues.org/article/234/the-rise-of-corporations

Corporations, as we tend to think of them, have been around for a few centuries, the earliest of which were chartered around the sixteenth century in places like England, Holland etc. Technically speaking, a corporation is what Robbins describes as a “social invention of the state” (Robbins: p.98). That is, a state grants a corporate charter, permitting private financial resources being used for public purposes. As Arrighi points out, this initial creation of private finance and merchants, etc was to aid in the expansion of a state to which it belonged, and as Arrighi and Smith detail, served to expand colonial and imperial interests to start with, as well as help in war efforts between empires.

The advantage of having a corporation over being an individual investing in trade voyages etc, was that an individual’s debts could be inherited by descendants (and hence, one could be jailed for debts of other family members, for example). A corporate charter however, was limited in its risks, to just the amount that was invested. A right not accorded to individuals. (Robbins: p.98)

Corporations had therefore the potential, from the onset, to become very powerful. Even Abraham Lincoln recognized this:

I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. ... corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands and the Republic is destroyed.

— U.S. President Abraham Lincoln, Nov. 21, 1864 (letter to Col. William F. Elkins) Ref: “The Lincoln Encyclopedia”, Archer H. Shaw (Macmillan, 1950, NY)

(More at the link. HAS anything changed? For the better?)