Rule One Stocks
How is society like a joint-stock company, and what are the consequences of this?
A “joint-stock company” is one in which all the shareholders vote for a board of directors who make all the decisions for the company. The board of directors’ mandate is to consider the good of the whole company over the wishes of any individual shareholder. Emerson would use the term “joint-stock” because many of the American colonies (under British rule) were established and financed through joint-stock arrangements, so Americans would have particular associations to the term.
People tend to associate with one another in groups. They derive a certain amount of self-identification from the group. However, if the group is formal and organizedmembers frequently are expected to act as one. A perfect example of this dynamic is that of government and sense of nationalism. If someone’s country goes to war, the individual inevitably will be drawn into the war even if he or she is against it. The person could well be perceived as the enemy by the other side, likely in a passive manner.
Unions, which are of course highly controversial, tend to operate in a similar way in that those who belong to it are expected to act as one on the basis of a vote. Union leaders, however, can wield a lot of power.
In the case of both unions and government, individual freedom is shortchanged.
Endangerment is one of the most obvious consequences of this situation. Personal dissatisfaction,and discord and lack of cohension are other results that can be predicted.
Boards of directors can be tyrannical. Some might consider them as a form of oligarchy.
Members of groups cometimes can chisel off other members, presumably through the help of those on top.
Ideally, both the wishes of the individual and of the group should be taken into consideration.
The stock exchange might well be a parody what goes on in the larger world.
Mike Turner’s Ten Essential Rules: Rule #1