History 1807 Lecture Notes - Lecture 15: South Sea Company, Stupid Kids, Headnote
7 Nov 2016
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Corporations mediate every interaction we have in the market. Corporate entity has become removed from the marketplace, especially w/ globalization. Corporation doesn"t have the ability to have the moral sentiment smith thought was key to a market economy. These large corporate structures have in a sense reversed the formula of supply/demand. If you produce more goods than can be absorbed in the marketplace, according to adam. Now there is an idea that growth is good/necessary, so we continue to produce things that there isn"t really demand for. Must find new markets for this demand, either internally via advertising, or externally via globalization. Corporations that were established in 16th/17th century were generally: granted by state authority/charter, intended to create public/quasi-public institutions (towns, cities, universities etc. ) or, private corporations like the east india company, virginia company, hbc. Created by the crown w/ explicit mandates from which the companies could not deviate (e. g. can only raise capital to trade in fur).
