Five Solas Ministry


Rushdoony, The Institutes of Biblical Law, pp.664-665

Rousas John Rushdoony, The Institutes of Biblical Law: A Chalcedon Study, Nutley, N.J.: Craig Press, 1973, pp.664-665

"A limited-liability company is one in which the liability of each shareholder is limited to the amount of his shares or stocks, or to a sum fixed by a guarantee called “limited by guarantee.” The purpose of limited-liability laws is to limit responsibility. Although the ostensible purpose is to protect the shareholders, the practical effect is to limit their responsibility and therefore encourage recklessness in investment. A limited-liability economy is socialistic. By seeking to protect people, a limited-liability economy merely transfers responsibility away from the people to the state, where “planning” supposedly obviates responsibility. Limited liability encourages people to take chances with limited risks, and to sin economically without paying the price. Limited-liability laws rest on the fallacy that payment for economic sins need not be made. In actuality, payment is simply transferred to others. Limited-liability laws were unpopular in earlier, Christian eras but have flourished in the Darwinian world. They rest on important religious presuppositions."