This can definitely lead to corruption.
If companies (read private and profit-making) can form governments, then obviously, they will need to have people be elected into government. And hmmm, who will their electorate comprise of? These little tech company cities will basically be little billionaire boys' clubs supporting each other at the expense of their residents.
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"I guess the only time people think about injustice is when it happens to them."
~ Charles Bukowski
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