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Corporations as ‘Creatures of the State’ is a Socialist myth

Corporations as ‘creatures of the state’ is a socialist myth. Under capitalism, corporations are created by individual contract. The state’s role is to protect those contracts, not to create them.

As historian Robert Hessen remarks:

“To call incorporation a ‘privilege’ implies that individuals have no right to create a corporation. But why is government permission needed? Who would be wronged if businesses adopted corporate features by contract?”


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