Best of the Week
Most Popular
1.UK General Election BBC Exit Polls Forecast Accuracy - Nadeem_Walayat
2.UK General Election 2017 Seats Final Forecast, Labour, Conservative Lib-Dem, SNP - Nadeem_Walayat
3.UK General Election 2017 Forecast: Conservative 358, Labour 212 Seats - Nadeem_Walayat
4.Theresa May to Resign, Fatal Error Was to Believe Worthless Opinion Polls! - Nadeem_Walayat
5.UK House Prices Forecast General Election 2017 Conservative Seats Result - Nadeem_Walayat
6.The Stock Market Crash of 2017 That Never Was But Could it Still Come to Pass? - Sol_Palha
7.[TRADE ALERT] Write This Gold Stock Ticker Down Now - WallStreetNation
8.UK General Election Results Map 2017 vs 2015 vs Opinion Polls - Nadeem_Walayat
9.Orphaned Poisoned Waters,Severe Chronic Water Shortage Imminent - Richard_Mills
10.How The Smart Money Is Playing The Lithium Boom - OilPrice_Com
Last 7 days
Nether Edge By Election Result: Labour Win Sheffield City Council Seat by 132 Votes - 23rd Jun 17
Grenfell Fire: 600 of 4000 Tower Blocks Ticking Time Bomb Death Traps! - 22nd Jun 17
Car Sales About To Go Over The Cliff - 22nd Jun 17
LOG 0.786 support in CRUDE OIL and COCOA - 22nd Jun 17
More Stock Market Fluctuations Along New Record Highs - 22nd Jun 17
Understanding true money, Pound Sterling must make another historic low, Euro and Gold outlook! - 22nd Jun 17
Green Party Could Control Sheffield City Council Balance of Power Local Election 2018 - 22nd Jun 17
Ratio Combo Charts : Hidden Clues to the Gold Market Puzzle - 22nd Jun 17
Steem Hard Forks & Now People Are Making Even More Money On Blockchain Steemit - 22nd Jun 17
4 Steps for Comparing Binary Options Providers - 22nd Jun 17
Nether Edge & Sharrow By-Election, Will Labour Lose Safe Council Seat, Sheffield? - 21st Jun 17
Stock Market SPX Making New Lows - 21st Jun 17
Your Future Wealth Depends on what You Decide to Keep and Invest in Now - 21st Jun 17
Either Bitcoin Will Fail OR Bitcoin Is A Government Invention Meant To Enslave... - 21st Jun 17
Strength in Gold and Silver Mining Stocks and Its Implications - 21st Jun 17
Inflation is No Longer in Stealth Mode - 21st Jun 17
CRUDE OIL UPDATE- “0.30 risk is cheap for changing implication!” - 20th Jun 17
Crude Oil Verifies Price Breakdown – Or Is It Something More? - 20th Jun 17
Trump Backs ISIS As He Pushes US Onto Brink of World War III With Russia - 20th Jun 17
Most Popular Auto Trading Tools for trading with Stock Markets - 20th Jun 17
GDXJ Gold Stocks Massacre: The Aftermath - 20th Jun 17
Why Walkers Crisps Pay Packet Promotion is RUBBISH! - 20th Jun 17
7 Signs You Should Add Gold To Your Portfolio Now - 19th Jun 17
US Bonds and Related Market Indicators - 19th Jun 17
Wireless Wars: The Billion Dollar Tech Boom No One Is Talking About - 19th Jun 17
Amey Playing Cat and Mouse Game with Sheffield Residents and Tree Campaigners - 19th Jun 17
Positive Stock Market Expectations, But Will Uptrend Continue? - 19th Jun 17
Gold Proprietary Cycle Indicator Remains Down - 19th Jun 17
Stock Market Higher Highs Still Likely - 18th Jun 17
The US Government Clamps Down on Ability of Americans To Purchase Bitcoin - 18th Jun 17
NDX/NAZ Continue downward pressure on the US Stock Market - 18th Jun 17
Return of the Gold Bear? - 18th Jun 17
Are Sheffield's High Rise Tower Blocks Safe? Grenfell Cladding Fire Disaster! - 18th Jun 17
Globalist Takeover Of The Internet Moves Into Overdrive - 17th Jun 17
Crazy Charging Stocks Bull Market Random Thoughts - 17th Jun 17
Reflation, Deflation and Gold - 17th Jun 17
Here’s The Case For An Upside Risk In The Global Economy - 17th Jun 17
Gold Bullish on Fed Interest Rate Hike - 16th Jun 17
Drones Upending Business Models and Reshaping Industry Landscapes - 16th Jun 17
Grenfell Tower Cladding Fire Disaster, 4,000 Ticking Time Bombs, Sheffield Council Flats Panic! - 16th Jun 17
Heating Oil Bottom Is In.(probably) - 16th Jun 17
Here’s the Investing Reason Active Funds Can’t Beat Passive Funds—and It Worries Me a Lot - 16th Jun 17
Is There Gold “Hype” and is Gold an Emotional Trade? - 16th Jun 17
The War On Cash Is Now Becoming The War On Cryptocurrency - 15th Jun 17
The US Dollar Bull Case - 15th Jun 17
The Pros and Cons of Bitcoin and Blockchain - 15th Jun 17
The Retail Sector Downfall We Saw Coming - 15th Jun 17
Charts That Explain Why The US Rule Oil Prices Not OPEC - 15th Jun 17
How to Find the Best Auto Loan - 15th Jun 17
Ultra-low Stock Market Volatility #ThisTimeIsDifferent - 14th Jun 17
DOLLAR has recently damaged GOLD and SILVER- viewed in MRI 3D charts - 14th Jun 17
US Dollar Acceleration Phase is Dead Ahead! - 14th Jun 17
Hit or Pass? An Overview of 2017’s Best Ranked Stocks - 14th Jun 17
Rise Gold to Recommence Work at Idaho Maryland Mine After 60 Years - 14th Jun 17
Stock Market Tech Shakeout! - 14th Jun 17
The #1 Gold Stock of 2017 - 14th Jun 17

Market Oracle FREE Newsletter

The MRI 3D Report

Surpreme Court Ruling that Corporations are People Too?

Politics / US Politics Jan 22, 2010 - 10:09 AM GMT

By: Andy_Sutton

Politics

Best Financial Markets Analysis ArticleThursday’s landmark Supreme Court decision has been called everything from proper to despicable and misguided.  Clearly in the historical realm, every nation, empire, and circumstance of human organization has clear signposts that mark first progress, then the eventual destruction of the entity. That is not meant to be melodramatic; it is simply the natural progression of societies. If you don’t agree, ask the Greeks, Romans, and British. So where does Thursday’s decision fit into America’s progression?


Framing the Discussion

Once again it becomes necessary to properly define terms and concepts since failure to do so will almost certainly result in the forthcoming analysis being misconstrued.

The establishment of the corporation as an ‘artificial person’ by the Supreme Court in 1819 was used to give the corporation (an assembly of individuals of indeterminate size) certain rights that were normally reserved for individual people or ‘natural persons’. For example, a corporation can enter into contracts, file suit, and be sued. Corporations can even be charged with and convicted of criminal offenses, although generally, criminal charges often pass through the corporate veil to members of management as well. The corporation as it were cannot commit a crime of its own volition, but only by the action or inaction of someone entrusted with making decisions for it. One right that has not been conferred to corporations is the right to physically vote in political elections, however, corporations have been able to financially support political candidates for quite some time now.

Until the mid 1800’s, the government issued all corporate charters, and the applicant had to demonstrate that what they were doing or proposing to do would be in the public interest (a novel idea). How many corporations today do you think would fail this acid test? Even in the era of the public interest doctrine as we’ll call it, there were many folks including Andrew Carnegie and John D. Rockefeller who sought to skirt the public-interest doctrine by organizing as limited partnerships or Trusts.

The Issue

At issue for the Supreme Court to decide was a 20-year old ban on corporations and labor unions providing money for campaign advertising. The Supremes took it a step further and also struck down part of the McCain-Feingold campaign finance reform law that banned corporate and union-paid ads in the closing weeks of political campaigns. While on the surface, this looks like a victory for the First Amendment; I think it does little more than pave the way for corporations to buy even more politicians; and to do so under the protection of the law.

The entire issue comes down to the corporation as a person. Is the corporation entitled to all the same rights as a natural person? The very fact that the Supreme Court in 1819 designated corporations as artificial persons rather than natural ones indicates that they are not. Keep in mind that the spirit of corporate law is largely centered on limited liability, not enabling the corporation to wield disproportionate power in the political process (which arguably was already happening anyway). Take our largest corporations, with billions of dollars in quarterly profits.

They are generally controlled by a Board of Directors and major shareholders; the number of which is comparable to those in attendance at a typical Little League baseball game. It is naïve to think that the American people can muster as much financial influence in Washington as even one large company, let alone all of them. The bottom line here is that a corporation is a creation of man and is not entitled to all of the same rights that are imbued in us by God. The framers of the Constitution, following along this line of reasoning, focused the founding documents on individual liberties rather than commercial ones.

Detractors of this line of thinking will accuse me of being hypocritical because on one hand I urge government to get out of the affairs of business, yet on this issue I encourage it to do the opposite. To reconcile these two disparate positions, one must understand the intended purpose of government. Our government was designed to protect the rights of the individual and to prevent people from running roughshod over each other. With that in mind, it would stand to reason that government shouldn’t be telling firms the maximum amount they can pay employees. It shouldn’t be bailing those companies out when they fail either. But it certainly should be preventing companies from stampeding the American people by making the electoral and legislative processes available to the highest bidder.

In conclusion, it is my opinion that what happened yesterday was misconstrued as being a First Amendment issue when it really is an issue of equal protection. Granted, groups like the NRA and other issue-specific groups have been shut out of certain political advertising in the days leading up to elections. That is wrong because those groups are speaking (hopefully) on behalf of their members as a cooperative. A corporation really can’t make that claim at the same level. The White House immediately issued a statement decrying the ruling, and although I agree in this instance, it must be pointed out that every single President in the corporate era has gotten money from corporations for their campaigns. That generalization can be extended to nearly every other political office in the country as well. The bottom line is that this activity was already going on anyway, but now the way has been paved for it to accelerate and increase in magnitude.

Yesterday’s ruling will allow corporations to dump unlimited funds into the coffers of political candidates and overtly buy the legislative process, using the government as a tool to enrich corporate bosses. It is easy to see why the power elite who controls the major corporations was most dissatisfied with the public interest doctrine in place in the 1800s. They greatly prefer that their companies be held to the doctrine of shareholder interest since any action that increases shareholder value is deemed appropriate and acceptable even if it encroaches on the rights of other citizens. Make no mistake about it; the government has already largely been purchased by the highest bidder. Yesterday’s decision legitimizes this previous illegitimate activity and gives the green light to a complete takeover of our government by large corporations.

I’d like to close with two quotations by Thomas Jefferson:

“Experience hath shewn, that even under the best forms of government those entrusted with power have, in time, and by slow operations, perverted it into tyranny.”

“I have the consolation of having added nothing to my private fortune during my public service, and of retiring with hands clean as they are empty.”

By Andy Sutton
http://www.my2centsonline.com

Andy Sutton holds a MBA with Honors in Economics from Moravian College and is a member of Omicron Delta Epsilon International Honor Society in Economics. His firm, Sutton & Associates, LLC currently provides financial planning services to a growing book of clients using a conservative approach aimed at accumulating high quality, income producing assets while providing protection against a falling dollar. For more information visit www.suttonfinance.net

Andy Sutton Archive

© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife