Corporatism is not capitalism

In reading comments around the internet that denounce capitalism, examples of its supposed unfairness are frequently given using corporations. Now there are a variety of things about corporations that may be good or bad. But it is important to note that corporatism is not synonymous with capitalism.

In fact many capitalists and free-marketers think little of corporations.

Now I am not against corporations competing within the marketplace. They can use their capital to be productive and offer low priced goods to consumers. I am not against large companies. It is true that larger amounts of capital potentially allow more efficient production; but it does not ensure it. And I don't think that small companies are unable to compete. Price is an important but not sole consideration for consumers, and smaller companies may have other advantages. Small businesses account for significant proportions of Gross Domestic Product in many countries.

But there are some aspects about corporations as they do exist (not as they have to exist) that are unpalatable and frankly anti-free-market.

The idea of a limited liability company seems questionable from a Christian perspective. Individuals can lose all their money. To run a business that allows you to take a greater risk and thus a potential greater gain, but not a greater, or even a complete loss seems unfair. Although in a system that allows unreasonable settlements in litigation I see the limited liability as the lesser evil.

But what is really irksome is special government favours for corporations. Unequal taxes, subsidies, guaranteed monopolies, separate law. This is not in the spirit of capitalism and annoys true capitalists as much as it does socialists. Perhaps more so as some socialists may justify specific corporations they happen to approve of, whereas capitalists may be competing in the marketplace against such an unfair advantage.

Taking money from once group to benefit another is generally a feature of socialism whether the recipient is poor or wealthy.

So if you despise capitalism and identify questionable practices by corporations as your reason, note that it is unlikely it is capitalist practices that make the corporation unjust, rather its anti-capitalist behaviour.