Naturally, proponents of limited liability offered a variety of other arguments as well. One of the reformers' favorites was that unlimited liability was undemocratic, giving wealthy citizens a substantial advantage in gaining access to capital.Hmmmmm. So the 'democratic' principle is that 'wealthy citizens' should not have 'substantial advantage'? I guess this 'democratic' principle only applies where certain advocates decide it applies.
Saturday, January 20, 2007
Another Twist of Public Argument
Another example of an argument used opportunistically to support the passage of limited liability law for corporate investors is cited by David Moss on p. 65 of When All Else Fails: Government as the Ultimate Risk Manager.