Ep. 153 Elizabeth Warren’s Accountable Capitalism Act

26 August 2018     |     Tom Woods     |     9

Senator Warren has proposed sweeping changes to how corporations would be allowed to operate in the United States — no longer will they cater to stockholders only, but they will have to take into account the needs of a wide range of “stakeholders” (workers, communities, etc.). Special guests Gene Epstein and Peter Klein join Tom.

Book Mentioned

Robert Hessen, In Defense of the Corporation

Related Episode (Tom Woods Show)

Ep. 325 Are Corporations Un-Libertarian? (Stephan Kinsella)

Episode Mentioned (Contra Krugman)

Ep. 6 Enough About Denmark Already: Here’s What Krugman and Sanders Left Out

The Contra Cruise!

Join Bob, Tom, and special guests for the third Contra Cruise — the best liberty week of the year!

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  • https://www.geico.com/ thevindicatedgecko

    Great discussion. One comment about firms and financial information. While I agree that firms would have incentive to report positive fundamental financial information to investors who go long regardless of regulation, there is disincentive to report negative financial information to investors who go short. As a case study, consider Elon Musk’s recent actions with Tesla, where outright fraud by Musk concerning a private buyout cost short-sellers billions.

    • Bogart

      What about it? This is a rare case where I find myself on Elon’s side. It is good that short sellers get blasted. Their the idiots that took the risk. The corporation is not responsible in any way to derivative holders and if a twitter feed can stiff them of millions or billions then they may not want the risk in the first place.

      • https://www.geico.com/ thevindicatedgecko

        “It is good that short sellers get blasted. Their the idiots that took the risk. ”

        Bullshot. Corporations have an obligation to provide information that is, to the best of their knowledge, factually correct. What Musk did was fraud. You Tesla trolls defend anything that supports your silly vision.

        • Bogart

          Factually accurate is not a very well defined term? Would Elon be fine saying that he was considering taking the company private instead of saying he was doing it? And is Twitter a good place for financial news on a company as complex as Tesla? If what Elon said was not legal or culpable to people who made derivative purchases then what can be said? What can an executive say to be legal and culpable? And if the action does not hurt his owners but hurts derivative holders is that bad?

          And then all Elon has to do is do one of two things:
          1. Apologize for the comment.
          2. Start a team in his company to consider going private.

  • ProfessorBernardoDeLaPaz

    Liz’ll Haunt Us

    Though she claims to be an eighth Cherokee,
    A nicer Senator there’ll never be.
    Donald Trump assails her integrity,
    And says…
    “She’s a goofus!”

  • Tyler Folger

    If businesses had been short-sighted, they wouldn’t have the current profits for Elizabeth Warren to complain about from past business activity.

    A genius point in its simplicity.

  • Lysander Spooner

    Corporations would be much smaller, on average, if they weren’t supported by the artificially low interest rates they get because of the current fiat money system. Low rates that smaller firms aren’t offered. Corporations are also protected from competition by thickets of regulations and red tape that strangle smaller businesses.

    It is the big government Senator Warren loves that has created the monster corporations.

  • Stephen

    It should be called the Starnesville Investment Act.

  • Ted120

    She is a shameful lying leftist …