Yeah, everyone would be too terrified to do anything for anyone else in case they got sued. Not a lot would get done. I imagined. Next?
I disagree.
The main benefit of incorporating -
the ability to shield one's self from liability - is also what makes it inherently evil -
providing the ability to avoid consequences.
I see society ultimately reinventing itself in a positive way instead, if individuals lose the ability to hide behind a corporate shield. Incentives now exist for incorporated business proprietors to cut corners any which way he can manage, when his personal wealth is legally shielded apart from his business venture.
Without corporate protections, if you (an individual, unshielded from personal liability) sell me (another individual) one of your goods, I see the following:
- You'd probably make sure that your product is made with quality and as safe as you know how to make it;
- You'd advertise that fact;
- You'd sell your product only to those who you know on an individual basis (e.g. family, friends, local community) with similar standards as yourself - to those whom you trust and who trusts you and your product in return;
- You'd be wary of selling to those whom you don't know (e.g. someone on the other side of the world, with different standards);
- If you do decide to sell to those whom you don't know, you'd make sure you disclaim liability, and the stranger who purchases your good would have to willingly assume full personal liability to use your product.
This ensures and encourages small, strong, cooperative, and cohesive local communities & local economies with shared standards; it also encourages people to be morally and ethically upright (lest they be personally sued to oblivion, with personal reputation and livelihood destroyed), with every individual in the community providing a check on every other individual in the community; it also discourages unhindered greed (they might be shunned into bankruptcy by their community, etc.) and the destruction of nature. It prevents the creation of monopolies, and the growth and development of corporations so large that they rival the power of nations.
Obviously, a system without corporations would not work well for those interested in anonymously amassing great private fortunes. The Corporation inherently encourages the destruction of natural limits, and drives the separation of mankind from nature and natural rhythms, by elevating wealth above all other concerns.
On the other hand, I put forward a viable alternative that is working in the real world, the German Mittlestand economy. No comment from yourself?
It's still a corporation-based economy, with "the family's company"
vs. everyone else. "Success" is seemingly defined in terms of everyone
within the company, working in context of broader corporate law, and protected by corporate law.