Corporations are Antithetical to the Free Market

Corporations, whose leaders portray themselves as champions of the free market, were in fact created to circumvent that market. They were an answer to the challenge of organizing thousands of people in different places and with different skills to perform large and complex tasks, like building automobiles or providing nationwide telephone service.

[...]Corporations are bureaucracies and managers are bureaucrats. Their fundamental tendency is toward self-perpetuation. They are, almost by definition, resistant to change. They were designed and tasked, not with reinforcing market forces, but with supplanting and even resisting the market.

Notes:

Adam Smith argued for free markets, where a multitude of individual transactions amongst small groups of people or individuals would produce fair prices for goods and services. Corporations subvert this process by forming large bureaucracies that make money by maintaining the status quo and squashing innovation.

Folksonomies: economics

Taxonomies:
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Concepts:
Free market (0.968619): website | dbpedia | freebase | yago

 The End of Management
Electronic/World Wide Web>Internet Article:  Murray, Alan (2010), The End of Management, Wall Street Journal, New York, Retrieved on -0001-11-30
  • Source Material [online.wsj.com]
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