The Principle of Joint-Stock Companies

Abstract

Development of capital relationship occurs in many areas. We can identify the main two of them: the development of the main organizational form of business activity as joint-stock companies and the development of their reproductive activity, which is reflected in the fundamental change in the processes of formation of the cost of the goods produced by these companies. The main trend in the development of a joint stock company may be called the “socialization of capital”, which not only retains many of the old ways of the private appropriation of profits, but also creates new kinds of them. The chain of commercial structures development involves conversion of the national jointstock companies into the international joint-stock companies, or multinational companies. This, in turn, leads to the transformation of a number of states, among which we include the developed or rich countries of the world, into a kind of “joint-stock” societies, whose citizens have an opportunity to increase (through an appropriate system of maintenance of a high level of wages and social benefits) their personal consumption financed by appropriating a disproportionately large part of the total world income by the country as a whole. Such a country objectively turns into a special economic-social form of existence of the joint-stock company. The basis for such a transformation of the state into a sort of joint-stock company is a new nature of production of the majority of modern goods. It consists in the change of the creation process of goods’ value which leads to the complete subordination of all its stages to the corresponding MNC groups.