A Question I got via PM

[nietzreznor]

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So it is your unequivocal claim that big corporations (or an analogue to corporation) would not exist under AC? Do you want to share with us how you know that?

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No. It is my claim that big corporations carry with them certain costs and inefficiencies due to their size. Normally, on a free market, this is not a problem, since a larger company or corporation may accept some ineffiency of size if their is a greater benefit to be had. But government intervention masks these costs and generally shifts them unto others, so that the corporations (or at least those at the top of the ladder) get the benefits of the size but don't have to pay the costs.
So, I am not saying that *no* large companies would exist in an anarchist society (it might be helpful if you stopped asking about 'AC', since I don't claim to be an ACist nor do I favor some sort of uniformly AC society)--just that there would be far fewer large companies, since there would be no State to transfer and hide the costs of scale, nor to subsidize them with tax breaks, etc.

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One would think that the economies and necessities of scale involved in things like oil production, refining and retailing; defense organizations; insurance, certain software systems, microprocessor manufacturing, aerospace manufacturing, and so forth would result in some very large corporations.

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These might lead to some larger companies, or they might not--I'm not going to sit here and try and predict which industires will have smaller companies and which ones will have larger ones. It's a waste of my time. My point is that government is essentially subsidizing the 'largeness' of corporations, and when you subsidize stuff you get more of it than you would under normal free market conditions.

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Especially when combined with people's natural inclination to become as powerful as possible and to horde as much as possible.

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Is government somehow magically exempt from this? When people have companies, they're greedy and evil and this will result in huge corporations, but when they work for government somehow it will work out fine?