Lindblom - The Market System - Afghan Journalists' Committee

Enterprise Obstructions to Democracy 237Oversized CitizensSet aside the mom-and-pop grocery and other small enterpriseswhose prerogatives in a democratic political systemare hardly distinguishable from those of individual persons.It is the large enterprises that pose obstructions to politicaldemocracy. Through their spending and their relations withgovernment officials they exercise much more power thando citizens. Their power swamps the power of all but a fewenormously wealthy citizens.If an enterprise incorporates, it then enjoys certain additionalrights. Limited liability, for example, limits lossesto stockholders if the enterprise fails. Investors thus protected,corporate executives can acquire from them—andthen spend—funds far larger than possible for wealthy individualpersons, even larger than possible for some nationstates.The corporation plays the role of an oversized,greatly empowered citizen. The role does not threaten aconspicuous breakdown—certainly no paralysis—of democraticregimes but a mammoth violation of the politicalequality ordinarily deemed necessary for genuine ratherthan spurious democracy.A striking example: In response to citizen action on environmentalissues, enterprises in Canada, Australia, Britain,and the United States in about 1970 began to sue individualpersons for circulating petitions, attending meetings, writingto public officials, and engaging in other citizen activitiesadverse to the enterprise. The suing enterprises knowthat they will win very few of these suits, because citizenactivities are protected by law, especially laws on free speech,in democracies. But they also know that a suit can be effectivesimply because of the threat of legal costs that will fallon the defendant, who of course does not have enterprise