Is Big Government a greater danger than Big Business?

Published May 09, 2011 in Short Answers by Mary Ruwart

Question

 In a libertarian society, how would we control corporations? They often exploit the environment and their employees, and seek to purchase the control of government. Is big government a greater danger than bigger business?

Answer

Big government is indeed a greater danger than big business, since it makes exploitation by big business possible.

In the early 1900s, individuals could sue corporations for environmental damage to their property, including pollution of the waterways. Britain still allows individuals to sue upstream polluters for restitution, as would a libertarian government.

In the United States, however, individuals are rarely permitted to sue, since government is supposed to do it for them. While an individual will rarely sit idle as his or her property is polluted and devalued, politicians and government employees can profit by accepting a bribe to look the other way. Consequently, a polluting corporation can sometimes render itself immune to prosecution by contributing to the appropriate campaign chest.

In a libertarian society, business managers or owners who mismanaged employee pension or savings funds might spend a lifetime making restitution to the victims. In today's society, government often forgives these debts through individual or corporate bankruptcy, protecting the guilty at the expense of the innocent. In a libertarian society, only the victims could waive their right to full restitution.

In summary, a libertarian society would not permit many of the abuses that big business gets away with today.

Dr. Ruwart's outstanding books Healing Our World and Short Answers to the Tough Questions are available at the Advocates Liberty Store.