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xcurmudgeon

Money Is Not Speech; Corporations Are Not Individuals

by: Elaine in Roanoke

Tue Jan 26, 2010 at 11:24:17 AM EST


"I hope we shall...crush in its birth the aristocracy of our moneyed corporations which dare already to challenge our government in a trial of strength, and bid defiance to the laws of our country." - Thomas Jefferson.

As I try to digest exactly what the latest Supreme Court grant of "personhood" to corporations will mean to the tattered "representative democracy" that is the government of the United States today (the 2nd Gilded Age), the words of Thomas Jefferson have a poignant ring for me. It seems that some problems are as old as our republic itself.

We, indeed, now have an "aristocracy of our moneyed corporations," an aristocracy that - thanks to the Supreme Court - is now free to pour even more money into the political process that is already poisoned by special interest money and influence.

All this court-mandated mischief is a simply the continuation of trouble caused by another Supreme Court decision, Buckley v Valeo (1976), which declared spending money to influence elections is a form of constitutionally protected free speech.

I don't have a law degree. I don't want a law degree. But, here is what common sense screams at me: Money is not speech; corporations are not individuals.

I can see one small silver lining to this mess, however. For the first time in a very long time, the movement pushing for public financing of elections has had new life breathed into it.

Elaine in Roanoke :: Money Is Not Speech; Corporations Are Not Individuals
Few people thought that the court case brought last year by Citizens United would result in a ruling that would shake the very foundation of the timid rules the federal government had in place to keep special interest election contributions under some semblance of control.

The case, which centered on a 90-minute video diatribe against Hillary Clinton during the presidential primary season, was expected to result in a narrow ruling around the question of whether such a video fell under the provisions of the McCain-Feingold law. After all, there were several Supreme Court precedents that had already upheld McCain-Feingold's limits on corporate and union spending.

Instead of simply following precedent, the right-wing cabal that now controls the court asked for arguments for and against the limiting of such campaign contributions under free speech guarantees. It seems they were setting up the result we inevitably got: corporate money can flood elections and overwhelm all those who don't serve their selfish desires. In other words, they were writing corporate-friendly legislation disguised as a legal ruling.

What amazed me was that the AFL-CIO filed a brief in support of corporations and unions being able to give unlimited money...as if the weak unions we have today could ever hope to compete with corporate power.

All this judicial mischief is the continuation of still another bad Supreme Court decision, Buckley v Valeo (1976), which declared spending money to influence elections is a form of constitutionally protected free speech.

Again, I reiterate: Money is not speech; corporations are not individuals. However, barring a return to common sense by the Supreme Court (an impossibility right now), we now have to do what we can to reclaim our democracy.

One thing crucial to cleaning up the mess our political system has become is reform of our election process. Key to reform is public financing of elections.

Even some business leaders are joining the fight for public financing. The day after the court ruling changed the political landscape for the 2010 midterm elections, 40 current and former corporate executives sent a letter to members of Congress through a group called Fair Elections Now, urging them to approve public financing for House and Senate campaigns.

The 40 signers said they are tired of being hit up for campaign donations, and they fear the requests will only intensify after the court reversed the restriction on the corporate purchase of politicians.

There is legislation, The Fair Elections Now Act, already introduced in the House and Senate. The proposal blends small donor fundraising with public financing to reduce the need for major contributors. The proposal has about 140 co-sponsors in the House. In the Senate, there are five co-sponsors.

The bill, HR 1826, has quite a few provisions. Candidates meeting certain requirements would qualify for public funds raised voluntarily from taxpayers through a check-off on their tax returns. It would allow matching payments for small campaign contributions. It also would provide vouchers for political advertising and would require a certain number of public debates. All the provisions of bill are on the Internet.

(By the way, when he was a senator, President Obama was a sponsor of the Fair Elections Now Act.)

Neither of our senators are currently co-sponsors. Gerry Connolly and Tom Perriello are the only two Virginia representatives who are co-sponsors of the legislation. One grassroots action this situations calls for is contact with our senators and representatives, urging support for the bill.

Do I think the legislation will pass this Congress? No, especially not in the Senate. However, at the very least, it should be used as an election issue in 2010. It taps into the populist anger at the purchase of our legislators by big money, and it has long been a progressive goal.

I am also hopeful that someone will introduce legislation requiring a shareholder vote before corporate money is used to influence elections. After all, in spite of how they act, the top managers of a company don't own it. The shareholders do.

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I mean, you're right, but...
The Constitution disagrees with you, or at least a couple hundred years of case law. Treating companies as individuals goes back to 1790, and at the very least, it's the basis for the last 100 years of corporate and tax law. So, while your sentiment is correct, it's not the law, and the Supreme Court in this case considers itself bound by precedent.

Congress can try to plug loopholes, but in the end, if they try to limit how companies can spend their money in relation to political speech, they're limiting 1st Amendment rights, which is unconstitutional.

So, yeah, I agree with you, but... it's going to take a few constitutional amendments to undo this. No small feat.


How can you treat...

a company as an individual when a company has no nationality?  Non-citizens are not allowed to vote.  Nor are they allowed to contribute to candidates for office.  And in general, I think people would be outraged at attempts by foreign governments or corporations to meddle in our electoral politics (well we do it to others all the time, but we wouldn't like it if it were done to us).

But multinational corporations have no nationality.  The board could be foreign, and the stockholders scattered all over the world.

How do you fix this?  I hear rumors that they would require shareholders to vote on corporate spending on election related things as a sort of a fix.  But what if the majority of shareholders aren't even U.S. citizens?

You could I suppose treat multinationals differently from non multinationals.  In effect saying that a multinational gives up its "citizenship" when it becomes multinational.  But what if the multinational has a U.S. subsidiary?  Or what if some company is partly owned by a multinational.


[ Parent ]
My suggestion...
Is that if corporations are to be considered individuals under the law then they should be treated as such under campaign finance regulations.  Meaning they'd be limited to the same dollar amount as individuals per each campaign.  Why should they be allowed to contribute unlimited funds to any one candidate when we're not?

[ Parent ]
Problem
Someone said that the problem is that corporations would be free to make things like "infomercials" against the positions of a candidate, as Citizens United did against Hillary Clinton.

Perhaps there is some sort of legislative fix.

One thing I do know. As a person who has a few stocks (i.e., a tiny bit of ownership), I certainly don't want those companies meddling in the political system. Shareholders should be permitted to vote yea or nay about the use of their money.

If the SC has said - and they have - that money equals speech, then as a stockholder, I don't want my "speech" used at the whim of a bunch of grossly overpaid executives who are guaranteed to be, at best, "libertarian."  


[ Parent ]
There are all kinds of potential pitfalls..

Let's say China was worried that we might try and bring manufacturing back to the U.S.  They could found a U.S. company, give it a bunch of money, and the company could run commercials.  They would tend to back candidates who are in favor of "Free Trade".

Meddling at this level would be really tough - even if they tried to come up with a way of hiding the source of the money, instead of running stooges that would advance your issues, it would probably be more effective to back total idiots who would serve to gum up the works with obstructionism.  Hmm....


[ Parent ]
Loophole Fixing
I have a feeling that Congress will patch this foreign-ownership loophole very quickly. I don't think anyone, even the USSC, believes that foreign companies should have serious sway over our political process.

[ Parent ]
What about partially owned companies?
Let's say that the majority of a corporation was owned by US stockholders, but that, say, a Saudi prince owns 20% of the stock. And without that 15% ownership, the corporation would be in danger of going into bankruptcy.

What if the prince makes it very clear what policies he wants to see?

What if the good CEO listens to the prince, and then begins an infomercial campaign?

How exactly are we going to patch this loophole?


[ Parent ]
I think you're misinformed...
...about this ruling. Companies, unlike individuals, are capped at $0 for direct campaign contributions. If you want to take out a $3M ad against a candidate, and as long as you don't coordinate with their opponent, you're absolutely free to do so. This ruling allows companies that same freedom. I'm not defending it, but you should get the facts straight.

[ Parent ]
It doesn't really matter
You can "donate" to the campaign by running expensive ads in favor of their candidate. There are subtle and not so subtle ways of doing this.

Even though technically it is a different matter, it makes no difference in real life.


[ Parent ]
That's just not true
The disallowing of direct contributions makes such a huge difference it's not even funny. Try removing that limit and then see what happens. We're talking advertising here with this ruling. Allowing Wal-Mart to give $100M, or even $4800, directly to the next Republican presidential candidate is a totally different matter. Worlds apart.

[ Parent ]
Precedents Can Be Overturned
I can't speak to your 1790 date. (It was the date of the death of Adam Smith.) I can say with confidence that nothing in the Constitution states that corporate entities are considered individuals before the law.

Dartmouth College v Woodward (1819) stated that corporations had the right enter into contracts and expect contracts to be honored, just the same as individuals.

The biggie that is always mentioned was in Santa Clara County v Southern Pacific Railroad (1886).  The court reporter wrote as a headnote for the case: "The court does not wish to hear argument on the question whether the provision in the Fourteenth Amendment to the Constitution, which forbids a State to deny to any person within its jurisdiction the equal protection of the laws, applies to these corporations. We are all of the opinion that it does."

In other words, the notations said corporations enjoyed the same rights under the Fourteenth Amendment as did natural persons. However, this issue was never actually stated in the court's decision.

Justice Hugo Black once said that nothing in the history of the 14th Amendment would lend itself to a belief that it "was passed for the benefit of corporations."

Even if one hundred years of court decisions have accepted that corporation have come alive, precedent can be overturned.


[ Parent ]
Our legal system?
Our entire legal system is based on precedent. Yes, precedents can be overturned. And there have been some biggies that have served the progressive agenda, and humanity in general, quite well. But there's a whole lot of precedent here. And we're not just talking this situation. all of modern corporate law is predicated on this notion. So while the USSC certainly could overturn Santa Clara, they're not going to, and it would probably be dramatically foolish of them to do so. Precedents should be overturned without prejudice when they deny basic rights - that's not the case here. To roll back corporation-as-entity would need to happen judiciously, slowly, and with great forethought.

I'm not supporting the notion. It's wrong and it should be fixed. I'm just saying that it's way more complicated than "let's throw it out the window and start over."

Amendments are often provided for clarity, and specifically for cases just like this. The 14th Amendment being the perfect example. The Constitution says some pretty absurd things in it, and they were fixed. In other places it simply leaves itself open to interpretation, sometimes badly. And we fix those with amendments. There's too much precedent there for the USSC to just wave their hand and make it go away (and it would undermine the basis of law in the US). But "we the people" are free to amend the Constitution to say, explicitly, that companies aren't people, and we should.

Now, that said, it's not going to happen. No way there would be an upwelling of grassroots support for such an amendment - it's just not interesting enough to most people. What we could do to fix the more immediate problem is, as you said in your later comment, institute meaningful public financing. That's something a lot of people could get behind.


[ Parent ]
Yes
I understand what you are saying. And, I agree that the SC won't overturn the precedents relating to corporate law. However, it was not so long ago that the SC ruled that money was the same as speech. They won't change that, either, though.

I do think this mischief by the SC opens the door for public financing of some form, especially if the current populist/anti-big business atmosphere is exploited by those of us who think that such financing is one of the main ways to "take our country back."


[ Parent ]
It's ironic that unions
sided with corporations on this because their diminished numbers mean they will have less and less voice as individuals.  And now that the percentage of workers in unions has sunk to historic lows, the corporatists will argue they are just one more to-be-ignored minority, kinda like they do with progressives.

I think unions were concerted that they would be silenced.  But in the long run, they were screwed no matter which way this case came out.  I wish unions great success in trying to repopulate their ranks.  But it will be a tough fight.

"One person, one vote" died at the hands of SCOTUS, January 21, 2010


Does this change things?
What's the difference? Corporations currently just throw money into some nice-sounding PAC, and do the same.

What has changed?


Corporate Donations
to a federal candidate, committee, or PAC are capped.

Under Citizens United, a corporation can make un-capped and unlimited expenditures directly toward expressing its opinion that a candidate should or should not get elected.  


[ Parent ]
And just to be very clear...
Corporate donations to a federal candidate aren't just capped, they're capped at $0, and always have been.

[ Parent ]
Declaration of Independence: Corporate form
When in the Course of corporate events it becomes necessary for one corporation to dissolve the political bands which have connected them with another and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of corporations requires that they should declare the causes which impel them to the separation.

We hold these truths to be self-evident, that all corporations are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. - That to secure these rights, Governments are instituted among Corporations, deriving their just powers from the consent of the incorporators, - That whenever any Form of Government becomes destructive of these ends, it is the Right of the Corporation to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn that mankind are more disposed to suffer, while evils are sufferable than to right themselves by abolishing the forms to which they are accustomed.



The Supremes and Their Owners
When I looked up that 19th century Supreme Court case that supposedly first articulated a belief that corporations should be treated as individual humans are, I discovered that the court actually never actually ruled that way. One of the justices simply noted that belief, and it made its way into the court notes.

I suppose that it was convenient for the first Gilded Agers to accept that as a ruling. After all, they - like the new Gilded Agers - worshiped at the altar of mammon.

I realize that corporations are considered as a legal equivalent of an individual when it comes to protecting the owners of the corporation from personal responsibility, especially financial; however, unless the corporation can get itself to the polls and vote, it isn't a political person in my book.

The fiction of personhood for global corporations has reached the level of absurdity. The only cure may be public financing. That is a far-away dream, but it also is a great political issue.


If corporations are treated
as individuals and are also allowed unlimited ability to fund political parties and/or candidates then it follows that individuals are also to be allowed unlimited ability to fund just the same. Any caps to political spending for federal elections are gone now. This is then the beginning of a new age of control of this country by the wealthy. As about half of this country is owned by the top 1%, American democracy is already pretty much at an end in face of corporate oligarchy.

If you want to control political spending, you have to limit it for everyone. This means that public funding must be the only option available with strict limitations even for primary contests. It's the only available option that brings back populism. Despite the fact that Obama and the Democratic Party rode high on the donation horse in 2008, we do not get to back down on this one as it is in fact our own party platform.


Has anyone read
either Jennifer Government by Max Barry or Snow Crash by Neal Stephenson?

Both expound upon the possibility of corporations being more important and/or powerful than government. The former is undoubtedly the best explanation of what a corporate state would be like. I highly recommend it. I don't think people understand what unrestricted business will do to the country. Simply put: unrestricted business will destroy the country and its government. Slavery, anyone?


Global Economy Built on Corporate Power
We tend to focus only on the business environment in our own country, but all of global capitalism has the same issue with the power of corporations/business. Money equals power. That's why I fear for our "democracy" with this latest SC ruling.

This is not new. It was true during the first industrial revolution. It's even more true with the post-industrial information world we now live in.

Part of the governmental kowtowing to business interests I can understand. The economy depends on those interests and the jobs they provide. However, we all can list many of the horrors perpetrated by governments putting commercial interests above the interests of the people.

It is sad that people seem to learn lessons from the over-reaching of greed and self-interest, just to repeat the mistakes a generation or two later. I guess we are living in one of the "learn the lessons all over" periods.


[ Parent ]
2nd Amendment Rights Next?
I thought conservative judges wanted to stay with settle precedent and law. The Republicans have been screaming for years about judges legislating from the bench. Now they have joined right in. The only reason judges can do this is that the legislature has left their backbone at the voting booth.

Since corporations now have first amendment rights, why don't they also have second amendment rights? Every business should have the right to bear arms and have a well maintained militia. It is only a matter of time now. The precedent has been set. Soon Blackwater / Xi will be outsourcing corporate warlords.


All hail Corporate feudalism!
So say ye, one and all. Hail the arrival of exactly that of which I have been complaining for at least fifteen to twenty years, which I called corporate feudalism for want of a better name, only now it is really, truly here---- the new aristocracy, the global elite which is beyond regulation by any silly, geographically limited state.

The governments of those nation states are raapidly becoming nothing more than functionaries of the various corporate powers loose in the world. If you think this might mean fewer wars or bloodletting because business hates instability, think again: corporate warfare exists already, and there is profit in war.

There are even those who see no harm in corporations replacing politicians as our rulers, since, as one LTE published in the WaPo says, rule by greed is no different from rule by the power hungry and corporations have supplied us with a high standard of living. The basic problem with replacing rule by professional politicians seeking personal power with corporate rule seeking profits is accountability. At least politicians must be voted upon and elected to boss us around, and can thus be un-elected, that is, fired.  Yet, while corporations may merge or be acquired, and their name disappear, they are essentially immortal and so have no term limits.


All hail!
You sound like you disapprove :) Personally, I'm looking forward to seeing things like "Senator X has been brought to you/bought for you by the deep pockets of CITGO and Hugo Chavez". And "Every Congress-monkey loves Chiquita; Congressman Y is no exception".

[ Parent ]
Cut out the middleman!
Tee hee. I laughed like a hyena, when I saw this. I think Teddy will appreciate it too:
http://thinkprogress.org/2010/...

I'm laughing, I'm laughing
What if MurrayHillInc gets elected?

[ Parent ]
Then we will
have one decent Representative on the Repub side of the isle to give us the bipartisan cover.

Not to mention all the pluses stemming from the transparency of being corporately-owned in the open. Don't know about you, but I'm getting tired of all the skulking the poor SOBs have to do, to account for every piddling $50K they manage to scrounge on the side...


[ Parent ]
You laugh, but...
In Hong Kong, companies are represented by "functional constituencies" and are actually elected to the Legco.

[ Parent ]
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