Philosophy may have gained by the attempts in recent years to look through the fiction to the fact and to generalize corporations, partnerships, and other groups into a single conception. But to generalize is to omit, and, in this instance, to omit one characteristic of the complete corporation, as called into being under modern statutes, that is most important in business and law.
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The word generalization in literature usually means covering too much territory too thinly to be persuasive, let alone convincing. In science, however, a generalization means a principle that has been found to hold true in every special case. ... The principle of leverage is a scientific generalization.
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The success of the imaginative experiment is always to be tested by the applicability of its results beyond the restricted locus from which it originated. In default of such extended application, a generalization started from physics, for example, remains merely an alternative expression of notions applicable to physics. The partially successful philosophic generalization will, if derived from physics, find applications in fields of experience beyond physics. It will enlighten observation in those remote fields, so that general principles can be discerned as in process of illustration, which in the absence of the imaginative generalization are obscured by their persistent exemplification.
The existence of analogies between central features of various theories implies the existence of a general theory which underlies the particular theories and unifies them with respect to those central features. This fundamental principle of generalization by abstraction was enunicated by the eminent American mathematician E. H. Moore more than thirty years ago. It is the purpose of the pages that follow to work out its implication for theoretical and applied economics.
For of course some sort of general idea they must have, if they were to do their work intelligently-though as little of one, if they were to be good and happy members of society, as possible. For particulars, as every one knows, makes for virtues and happiness;generalities are intellectually necessary evils. Not philosophers, but fret-sawyers and stamp collectors compose the backbone of society.
Provided they are substantiated by hard evidence, not hunches, generalizations are not incorrect. Science relies on the ability to generalize to the larger population observations drawn from a representative sample. People make prudent decisions in their daily lives based on probabilities and generalities. That one chooses not to live in a particular crime-riddled county or country in no way implies that one considers all individual residents there to be criminals, only that a sensible determination has been made, based on statistically significant data, as to where scarce and precious resources—one's life and property—are best invested.
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All general business corporation statues appear to date from well after 1800.. The Framers thus took it as a given that corporations could be comprehensively regulated in the service of the public welfare. Unlike our colleagues, they had little trouble distinguishing corporations from human beings, and when they constitutionalized the right to free speech in the First Amendment, it was the free speech of individual Americans they had in mind.
The fact that corporations are different from human beings might seem to need no elaboration, except that the majority opinion almost completely elides it…. Unlike natural persons, corporations have ‘limited liability’ for their owners and managers, ‘perpetual life,’ separation of ownership and control, ‘and favorable treatment of the accumulation of assets….’ Unlike voters in U.S. elections, corporations may be foreign controlled.
...It might be added that corporations have no consciences, no beliefs, no feelings, no thoughts, no desires. Corporations help structure and facilitate the activities of human beings, to be sure, and their ‘personhood’ often serves as a useful legal fiction. But they are not themselves members of ‘We the People’ by whom and for whom our Constitution was established.
When the modern corporation acquires power over markets, power in the community, power over the state and power over belief, it is a political instrument, different in degree but not in kind from the state itself. To hold otherwise — to deny the political character of the modern corporation — is not merely to avoid the reality. It is to disguise the reality. The victims of that disguise are those we instruct in error. The beneficiaries are the institutions whose power we so disguise. Let there be no question: economics, so long as it is thus taught, becomes, however unconsciously, a part of the arrangement by which the citizen or student is kept from seeing how he or she is, or will be, governed.
A seeker after Truth cannot afford to indulge in generalisation. Darwin for the greater part of his book Origin of the Species [sic] has simply massed fact upon fact without any theorising, and only towards the end has formulated his conclusion which, because of the sheer weight of testimony behind it, becomes almost irresistible. Yes I have criticised even Darwin's generalisation as being unwarranted. Science tells us that a proposition may hold good in nine hundred ninety-nine cases and yet fail in the thousandth case and thus be rendered untenable as a universal statement.
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