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▲ digitaltrees 5 hours ago

We remove the limited liability protection of a corporate entity. Make them operate as a partnership so all executives and equity holders are personally liable for the debts of the firm and make them post a bond to backstop financial damage caused by their agents and customers use of the agents. Thats how Goldman Sachs and other investment banks were required to operate until the deregulation push that resulted in the 2008 financial crisis. The same theory holds, if people respond to incentives and you want to incentives safe behavior make them responsible for their actions. People forget that the corporate entity was created to incentivize risky activity like sailing a boat across the world to get spices when half never returned. Some valuable economic activity won't be done without limited liability protection so society created a mechanism to promote that activity. We've gone too far.