Liberty is Prosperity

Saturday, September 03, 2005

Corporate Irresponsibility

This is a comment on Jackson Kuhl's Tech Central Station post, "The City Below Sea Level".

New Orleans was built on the same sort of government sanctioned irresponsibility that contributes so much to the present crisis.

Law's venture was chartered by France. Just like modern corporations he and Bienville made decisions in a mode of 'heads we win, tails they lose'.

Goverment granted charters, or incorporations as they are now termed, limit the liability of the individuals involved. Since there is no free lunch, other people pay the price of this grant. Now as then, get rich quick schemes proliferate as a result.

Enron and Katrina are cousins- the end products of business decisions made correctly within the established regime that encourages excess risk taking since others will bear the consequences.

Someone has to pay for destructive business decisions eventually. Limited liabilty typically places that burden on those least able to pay it- like those now suffering and dying in New Orleans.