Essay on why we need rules

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For a long time, longer than anyone in the newspaper business has been alive in fact, print journalism has been intertwined with these economics. The expense of printing created an environment where Wal-Mart was willing to subsidize the Baghdad bureau. This wasn’t because of any deep link between advertising and reporting, nor was it about any real desire on the part of Wal-Mart to have their marketing budget go to international correspondents. It was just an accident. Advertisers had little choice other than to have their money used that way, since they didn’t really have any other vehicle for display ads.

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Smith begins his Wealth of Nations (1776) with an account of how a pin-making firm manages to produce so many pins, . efficiently, via the utilisation of a clever division of labour. Clearly, for Smith, firms are the locus of the division of labour. Firms are good for the purpose of creating economies of scale and thus of making it possible to reduce costs inexorably while boosting output geometrically. However, firms sees a threat to the Good Society because an inordinate success of one firm poses a threat to competition, the solvent of market (or monopoly) power that constantly undermines the invisible hand. For that reason, Smith was adamantly opposed to the idea of limited liability, to corporations in other words. In short, firms were essential as loci of divided and synchronised labour but their ultimate contribution to society was predicated upon being kept small, free of the division between ownership and control that is the feature of modern corporations and, lastly, engaged in constant, cut-throat competition with one another.

Essay on why we need rules

essay on why we need rules

Smith begins his Wealth of Nations (1776) with an account of how a pin-making firm manages to produce so many pins, . efficiently, via the utilisation of a clever division of labour. Clearly, for Smith, firms are the locus of the division of labour. Firms are good for the purpose of creating economies of scale and thus of making it possible to reduce costs inexorably while boosting output geometrically. However, firms sees a threat to the Good Society because an inordinate success of one firm poses a threat to competition, the solvent of market (or monopoly) power that constantly undermines the invisible hand. For that reason, Smith was adamantly opposed to the idea of limited liability, to corporations in other words. In short, firms were essential as loci of divided and synchronised labour but their ultimate contribution to society was predicated upon being kept small, free of the division between ownership and control that is the feature of modern corporations and, lastly, engaged in constant, cut-throat competition with one another.

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