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LWV
“The Supreme Court has made a tragic mistake.
Their decision announced today in Citizens United
v. FEC is constitutionally irresponsible and will
surely bring about an anti-democratic revolution in
how we finance elections in this country.
Today, basic pillars of American democracy have
been undermined – that elections should not be
corrupted by vast corporate wealth and that the
voters should be at the center of our democratic
system.”
Mary G. Wilson, LWV Press Release1/21/10
Corporate Personhood:
Democracy for Sale?
US Constitution
We the People
Government
Free and Sovereign
Subordinate & Accountable
Individual Rights
Collective Duties
Private
Public
corporations
The Corporation in Early America
• Public purpose
• Time limited charter passed by a state
legislature
• Could not influence elections or legislation
• Terminated for public harm
• Profit was incidental
1868
14th Amendment
Gave former slaves
legal protections of the Constitution.
“…nor shall any State deprive any person
of life, liberty, or property without due
process of law; nor deny to any person
within its jurisdiction the
equal protection of the laws.”
1886
Santa Clara County
v. Southern Pacific Railroad
This case has been cited
as precedent to hold that
a corporation is
a “natural person.”
(14th Amendment protection)
Of the 14th Amendment cases…
brought before the
Supreme Court between
1890 and 1910,
19 dealt with African Americans,
288 dealt with corporations.
1919
Dodge v. Ford Motor Co.
Michigan Supreme Court ruled,
“A business corporation is…
primarily for the profit of the
stockholders.”
1976
Buckley v. Valeo
Political money is equivalent
to speech.
--expanded 1st Amendment
protections to include
political expenditures.
Money = Speech
1978
1st National Bank of Boston
v. Bellotti
Corporations won the 1st Amendment
right to spend money on
ballot initiatives and referenda.
Chief Justice Rehnquist wrote the dissent.
Chief Justice Rehnquist
“The question presented today, whether business corporations
have a constitutionally protected liberty to engage in political
activities, has never been squarely addressed by any previous
decision of this Court.
However,…the Commonwealth of Massachusetts, the Congress
of the United States, and the legislatures of 30 other
States…have concluded that restrictions upon the political
activity of business corporations are both politically desirable
and constitutionally permissible. The judgment of such a broad
consensus of governmental bodies expressed over a period of
many decades is entitled to considerable deference from this
Court.”
DISSENT: 1st National Bank of Boston v. Bellotti
2010 CITIZENS UNITED v. FEC
The US Supreme Court allows
corporations & unions to spend
unlimited money
supporting or opposing
candidates and issues in elections.
Citizens United, a 501(c)4
Justice Anthony Kennedy
“The appearance of influence
… will not cause the
electorate to lose faith in our
democracy.”
From Citizens United v. FEC majority opinion 1/21/10
2010 CITIZENS UNITED v. FEC
Based on two US Supreme Court precedents:
Corporation is a Person
Money = Speech
Money = Speech
In Perspective
Of the 100 largest economies on Earth,
47 are countries --53 are corporations.
The 400 richest Americans own
more wealth than
the poorest 150 million Americans.
Corporate
Personhood
Crucial Distinctions
• “We the People” have unalienable
constitutional Rights.
• Government has Powers conferred by
“We the People.”
• A Corporation has Privileges granted by a
corporate charter of a state government.
(e.g., limited liability, perpetual life, property
ownership)
Move to Amend
Only human beings, and not other
entities, have constitutional rights.
Money is not equivalent to speech
and, therefore, can be regulated in
the political process.
Why an Amendment?
1803 Marbury v. Madison
Supreme Court ruled itself supreme among
the 3 branches of government.
Established judicial review.
Common Objections
to an Amendment
• Corporations always had constitutional rights.
False
• Corporations could not sue or be sued.
False
• Nonprofit associations would lose their
Free Speech rights.
False
• “There is no such thing as too much speech.”
Absurd
How You Can Help
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Move to Amend!
Distribution of Wealth
Thomas Hoenig
“A member of
Congress…reluctantly
confirmed for me that any
candidate who runs for
national office must go
to…the big banks
to raise money.”
NYT December 1, 2010
Too Big to Fail = Too Big
Two years after the “too big to fail” bailout,
the 5 largest banks were 20% larger
than before the crisis.
The 5 largest banks in the US control
$8.6 trillion in assets = 60% of GDP.
Thomas Hoenig 12/1/10
Corporate
Power
and the
Sierra
Club
“Over our history the Sierra
Club has focused more on the
environmental and public
health EFFECTS of corporate
power, while…
…focusing less on the
INSTITUTIONS AND RULES
enabling corporations to apply
that power to harm the Earth
and its inhabitants.”
1906
Hale v. Henkel
Corporations won 4th Amendment
“search and seizure” protection.
Justice Harlan dissented: “…the power of the
government…to look into the books, records &
papers of a corporation of its own creation, to
ascertain whether that corporation has obeyed
or is defying the law, will be greatly curtailed,
if not destroyed.”
Regulatory Laws’
Unintended Consequences
• Can legalize harmful activities
• Outrage shifts from corporations to
government
• Leads to the “revolving door”
• Can negatively impact small business
• Corporations get what they want & escape
accountability
Proposed
th
28
Amendment
Section 1 (A corporation is not a person and can be regulated)
The rights protected by the Constitution of the United States are the rights of
natural persons only.
Artificial entities, such as corporations, limited liability companies, and other
entities, established by the laws of any State, the United States, or any foreign
state shall have no rights under this Constitution and are subject to regulation by
the People, through Federal, State, or local law.
The privileges of artificial entities shall be determined by the People, through
Federal, State, or local law, and shall not be construed to be inherent or
inalienable.
Proposed Amendment, cont’d
Section 2 (Money is not speech and can be regulated)
Federal, State and local government shall regulate, limit, or prohibit
contributions and expenditures, including a candidate’s own contributions
and expenditures, for the purpose of influencing in any way the election of
any candidate for public office or any ballot measure.
Federal, State and local government shall require that any permissible
contributions and expenditures be publicly disclosed.
The judiciary shall not construe the spending of money to influence
elections to be speech under the First Amendment.
Section 3
Nothing contained in this amendment shall be construed to abridge the
freedom of the press.