Corporations are anything but “creatures of the state”

Bill Clinton recently said that in law school they’re taught that corporations are creatures of the state.

If that’s what they teach in law school, get your tuition money back.

To be a creature of the state means that you’re created by the state. The only corporations that are creatures of the state are companies like Fannie Mae and Freddie Mac, which were in fact set up by the state.

As for almost all other corporations, in most cases they got their start in someone’s garage or basement or home office and grew from there. They are creatures of the private-sector person or persons who started them. They weren’t set up by the state or by any government official in any way.

To be sure, the state can create a good climate for corporations, such as transportation infrastructure and enforcement of contracts, but all too often it also throws up obstacles along the way, like over-regulation, over-litigation, and excessive taxation.

Note to Bill Clinton and to law schools: with a very few exceptions, corporations are not creatures of (i.e. created by) the state in any way.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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