Wednesday, March 1, 2017

Redress of disproportionate scale

The primary problem with the economy right now is enormous inequality expressed in many ways. On the meta level, the power of corporations to effect ecosystem scale damage threatens the survival of humanity through its impact on the environment - climate change, air and water pollution, fracking triggered earthquakes, water shortages, etc. My favorite example is the power to literally remove mountains by mountaintop coal mining. Bill Nye describes another example where tar sands oil extraction has denuded one quarter of the visible ecosystem in the Canadian province of Alberta.

As regular readers would know, my preferred solution is to make information fully transparent. Controlling information is how corporations concentrate power. There are two other options which would diffuse the ability of corporations to concentrate power. Neither would be as effective as information transparency but its always good to attack large problems from multiple fronts. One would be to force all corporations to have a fixed expiration dates. Corporations are legal entities. The Supreme Court has given them some personhood rights without the limits that natural persons experience with biologically imposed death. Corporate expiration dates would fix that problem. BTW, because corporations are owned by people, the extension of personhood rights to corporations means owners of corporations have more rights than non-owners. Its surprising this isn't seen as a challenge to one-person-one-vote.

The other option is to limit the size of financial institutions. Banks are tools by which corporations collect/borrow the money/capital to become powerful. No one individual has the money to buy the resources to blow up mountains. By pooling the money of many people, banks can collect the needed funds. Smaller banks can't collect as much money. This would not prevent the concentration of power but it would put up additional barriers because it forces the participation of more players who each would/could add their own conditions.

So not as simple as my preferred open information proposal but perhaps good options to add to the tool chest in opposition to concentrated economic power.


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