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The Fallacy of The Left’s ‘Corporations Are Not People’

June 11, 2012

Here’s one proof that liberalism is a chronic mental disorder. Mediocre Harvard academic and Democrat candidate [plus fauxcahontas) Elizabeth Warrensaid: “No, Mitt, corporations are not people. People have hearts,

It's all about socialism...

It’s all about socialism…

they have kids, they get jobs, they get sick, they love, they cry, they dance, they live and they die. Learn the difference. And Mitt, learn this. We don’t run this country for corporations; we run [it] for people.”

Such a liberal statement is so erroneous and so evil and mediocre that it commits more than 10 logical fallacies. ‘Corporations are not people’ is just one fallacy the liberals and leftists use to discredit capitalism. Of course corporations are not people, but they are the result of people’s willingness to associate and to contract, which is an essential component of man’s rights. For this reason I strongly disagree with the theory of concession on the formation of corporations, which suggests that a corporation is a creature of the state. Unfortunately, our Corporate Law treats that corporations are merely creatures of the state. I agree with the ‘theory of corporate enterprise’ which postulates that a corporation is not merely an artificial being, but the logical, actual result of human economic actions.

A corporation composed of more than 5 persons cannot acquire new rights. A group of 100 men cannot acquire any additional rights by simply forming a corporation. There is no such thing as a collective right. Whatever the nature or number or economic power of that corporation, it remains liable under the law for breach of laws or violation of people’s rights. Thus a corporation is just one effective way for business people to trade, to contract, to associate, to produce, and to create wealth. 

Nobody’s saying or arguing that corporations are people; corporations are simply an aggregation of persons doing business. This type of mediocre, dishonest attack on capitalism simply implies that a) capitalism is heartless, b) it’s against people, and c) it is evil. However, historical reality tells us that it is socialism that is heartless, against individual rights, and evil…

As philosopher Leonard Peikoff said:

A corporation is a union of human beings in a voluntary, cooperative endeavor. It exemplifies the principle of free association, which is an expression of the right to freedom. Any attributes which corporations have are attributes (or rights) which the individuals have—including the right to combine in a certain way, offer products under certain terms, and deal with others according to certain rules, for instance, limited liability.

An individual can say to a storekeeper, “I would like to have credit, but I put you on notice that if I can’t pay, you can’t attach my home—take it or leave it.” The storekeeper is free to accept those terms, or not. A corporation is a cooperative productive endeavor which gives a similar warning explicitly. It has no mystical attributes, no attributes that don’t go back to the rights of individuals, including their right of free association.

 

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