Drug cartels do all the things any corporation would happily do without laws to restrict them. So I don’t see any distinction and I don’t believe a govt is necessary for a corporation to exist. Just like with any other crime by any other citizen, a govt uses its monopoly on violence to prevent corporations from doing harm.
Drug cartels aren’t really corporations. There’s no formal structure, shares or board meetings, and sometimes they do just descend into civil war (like in Mexico right now). They’re businesses, but in some ways Rome was as well. The thing that makes them a funny historical edge case is that their primary business is transport rather than theft, and that’s down to the massive US/Canadian demand, the wealth behind it, and the inability of any recognised state to join the drug trade in their place and get away with it.
There’s no formal structure, shares or board meetings
This is an arbitrary list of things and I don’t agree that all corporations have all of these, but I guarantee most cartels have a formal structure, a clear description of ownership, and what qualifies as board of leaders. Most wouldn’t be able to function without it.
sometimes they do just descend into civil war
They compete with rival cartels in all the same ways corporations would if they could (or already do when they can get away with it).
They’re businesses
I’m curious why you’re willing to call them businesses but corporations.
Anyone can create their own money. Consider Bitcoin. The hard part is getting people to use it.
Corporations can print corporate shares, though the more shares they print, the less each share is worth. You can’t buy a pack of gum with corporate shares, though, so I wouldn’t call in money or currency.
Private banks can print money, but not an an unlimited amount. They can only print as much as the government allows, and it can only be created as the principal of a loan, and the money is destroyed as the borrower pays down the principal.
Corporations try to all the time. It’s only through an effective use of law that they don’t. And lately, it hasn’t been very effective.
But also a government can’t print “unlimited currency”. Eventually it would be worthless. They are effectively only permitted to print currency proportional to what their creditors allow.
But also a government can’t print “unlimited currency”. Eventually it would be worthless.
Governments can do it, but you’ve explained why they don’t do it.
They are effectively only permitted to print currency proportional to what their creditors allow.
A government with fiat monetary sovereignty has no need to borrow its own money, because it already can create as much as it pleases. The purpose of government securities is not to fund spending but to give the rich a safe place to park their capital with interest.
The purpose of government securities is not to fund spending but to give the rich a safe place to park their capital with interest.
You have a source on this? I find it difficult to believe that it is ever a good idea to just take out a loan for the sake of making the interest payments. Especially using public funds, that sounds pretty close to embezzlement.
Rather, a country’s budget should always make use of debt, because its reputation has value and should be invested, not left sitting on the table.
Corporations are construct of law. They can’t exist without a government to enforce corporate law through its monopoly on violence.
Drug cartels do all the things any corporation would happily do without laws to restrict them. So I don’t see any distinction and I don’t believe a govt is necessary for a corporation to exist. Just like with any other crime by any other citizen, a govt uses its monopoly on violence to prevent corporations from doing harm.
Drug cartels aren’t really corporations. There’s no formal structure, shares or board meetings, and sometimes they do just descend into civil war (like in Mexico right now). They’re businesses, but in some ways Rome was as well. The thing that makes them a funny historical edge case is that their primary business is transport rather than theft, and that’s down to the massive US/Canadian demand, the wealth behind it, and the inability of any recognised state to join the drug trade in their place and get away with it.
This is an arbitrary list of things and I don’t agree that all corporations have all of these, but I guarantee most cartels have a formal structure, a clear description of ownership, and what qualifies as board of leaders. Most wouldn’t be able to function without it.
They compete with rival cartels in all the same ways corporations would if they could (or already do when they can get away with it).
I’m curious why you’re willing to call them businesses but corporations.
A government can create unlimited currency via an act of congress. Can a corporation create unlimited money when it wants to?
Anyone can create their own money. Consider Bitcoin. The hard part is getting people to use it.
Corporations can print corporate shares, though the more shares they print, the less each share is worth. You can’t buy a pack of gum with corporate shares, though, so I wouldn’t call in money or currency.
Private banks can print money, but not an an unlimited amount. They can only print as much as the government allows, and it can only be created as the principal of a loan, and the money is destroyed as the borrower pays down the principal.
Governments can create as much of their own sovereign currency as they want. Governments can levy taxes corporations can’t.
Yes.
Corporations try to all the time. It’s only through an effective use of law that they don’t. And lately, it hasn’t been very effective.
But also a government can’t print “unlimited currency”. Eventually it would be worthless. They are effectively only permitted to print currency proportional to what their creditors allow.
Governments can do it, but you’ve explained why they don’t do it.
A government with fiat monetary sovereignty has no need to borrow its own money, because it already can create as much as it pleases. The purpose of government securities is not to fund spending but to give the rich a safe place to park their capital with interest.
You have a source on this? I find it difficult to believe that it is ever a good idea to just take out a loan for the sake of making the interest payments. Especially using public funds, that sounds pretty close to embezzlement.
Rather, a country’s budget should always make use of debt, because its reputation has value and should be invested, not left sitting on the table.