The New Civil Rights, Part II

Supreme CourtMy last post about Corporate civil rights generated a lot of emails, most angry or incredulous, from both sides of the political spectrum. That’s not surprising to me, since I am clearly an Independent. I figure if I’m making both extremes angry, then I’m probably doing something right. So, here’s some more truth for you. Let the education commence.

There’s a concept called ‘economy of scale‘. You can make it complicated, but in essence it means that (all other things being equal) larger Corporations are more efficient than smaller Corporations. There’s an efficiency to mass production that smaller Corporations can’t match. It takes more of the smaller Corporations (each with their own billing departments, advertising, administration, etc.) to do the job of one larger Corporation. It’s a huge waste of expense and effort, and we should do everything we can to reduce it as much as possible. To this end, I propose that we make it illegal for Corporations to split off portions of themselves (i.e. sub-Corporations) and thereby create these very inefficiencies. It’s just not right, and we need to stop it.

Now, I realize that this is a big change in the current law and it will probably take a Constitutional Amendment to ban this practice altogether. But that doesn’t mean that we can’t work around the edges to make it harder to get rid of sub-Corporations, and hopefully reduce the number of them. I propose these changes which should be constitutional enough to pass right now:

  • Once a Corporation declares that they want to terminate such an arrangement, they should have to wait at least 24 hours before the agreement can legally be signed. This will give them time to think about the gravity of what they are doing.
  • A Corporation should have to notify their stockholders of their intent to terminate such an arrangement. The stockholders have a right to know, and to help in the decision-making process.
  • Any Corporation which wants to terminate such an arrangement should be required to watch a video about other Corporations which have terminated a sub-Corporation business arrangement. They should know what they’re getting into.
  • Any Corporation which wants to terminate such an arrangement should be required to have pre-termination counseling with an Economist. There are a lot of things that they might not be thinking about, but that they really need to know.

Now, I know that a lot of people will say that it’s up to the Corporation and their accountants to determine what is in their own best interests, but this is bigger than that. This is not a choice that they should be able to make. I mean, I can’t choose to murder someone, so why should Corporations be allowed to choose to murder the economy?

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