How do we deal with firms that commit crimes?
I am a capitalist, a supporter of Austrian Economics, and somewhere around minarchist politically.
I’m curious – does Austrian Economics have any prescriptions for dealing with firms that commit crimes? For example, if a factory next door releases smoke onto my property and gives me a disease, it has effectively assaulted me. I think most Austrians can agree in that case that my property rights have been violated, but what ought to happen to the firm responsible?
Obviously they’d owe me damages, but what they’ve done also has a criminal aspect. If the factory was a sole proprietorship, I’d argue you’d charge the owner with assault, or even with murder if I die as a result of my disease. When it’s a firm such as a corporation, however, how do we handle that? The shareholders don’t seem ethically responsible, so should management get jail time? Should there just be a fine large enough to harm the firm?
Essentially, I want to know what the government solution to this type of thing is, if any. Or is there a free market solution? In a free market stateless society, would I then be justified in shutting down the factory as a form of self-defense? How about in destroying it?
To clarify, I’m not asking about pollution – that’s just an example – I’m asking about what should happen when a firm does something that an individual would be criminally charged for.
submitted by /u/PoliticsDunnRight
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