Book: Corporations Are NOT People

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A Review & author interview by Thom Hartmann




PREFACE

Of course corporations are not people. Do we really need a book about that obvious truth? Unfortunately, we do. After the United States Supreme Court’s decision in Citizens United v. Federal Election Commission in 2010, the identity of corporations and their place in our government of the people is not so obvious anymore, at least not to the Supreme Court and to the armies of corporate lawyers pushing for more corporate constitutional rights. And the fact that corporations are not people does not seem to be obvious to too many cowed and trembling lawmakers at all levels of government. There are exceptions, to be sure, but in the face of wildly unbalanced corporate money and infl uence, too few of our elected offi cials stand with conviction and fi rmness to state the obvious about corporations in defense of the public interest. Citizens United is the biggest and most radical (to use a word from the dissent of Justice Stevens) decision in a regular series of recent Supreme Court decisions in favor of corporations. In Citizens United, the Supreme Court overturned decades of precedent, reversed a century of legislative eff ort to keep corporate money from corrupting democracy, and up-ended the American ideal that we are a government of people rather than a government of corporate wealth. The decision, in many ways, symbolizes how far off track we have fallen from our ideal of the American Republic, governed by the people.


In the pages that follow, I hope to show what Citizens United is all about, where it came from, and what I think this triumph of corporate power means for you and for all Americans. Much of the book is about what I see as the devastating eff ect of unbalanced corporate power, sustained and strengthened by a deliberate, organized, and extremely well funded campaign to transform—I would say, pervert—our Bill of Rights into a charter for corporations as much and even more than for people. I also hope to show, however, why we do not have to leave it at that depressing juncture. As I describe in Chapter Seven, thanks to the mechanism of constitutional amendment that has come through before when our democracy is on the line, we can fi ght back to restore government of the people and to save our country. Thousands of people have started that work already, working for the People’s Rights Amendment as the Twenty-Eighth Amendment to the Constitution. I hope that you will join us; the Resources section that follows Chapter Seven offers some ways you can do that.

Many people across the country have taken up the eff ort to preserve our nation and world against unbalanced corporate power and have shared their ideas, time, spirit, and hard work with me. I hope that all of them will know how much they have influenced this book and how grateful I am, even if I could not list everyone here.

Bill Moyers is at the top of the list of a few who deserve special mention. Bill has been a hero and a teacher for me and for so many Americans. He tells the truth. Calmly and clearly, to be sure, but make no mistake, he tells the truth, out loud for all to hear. He never gives up on the journey of America and of humanity, and his curiosity, determination, and grace make that journey live for all of us. I cannot say how grateful and honored I am to have him write the Foreword to this book.


FOREWARD by Bill Moyers

FIGHTING BACK

Rarely have so few imposed such damage on so many. When five conservative members of the Supreme Court handed for-profit corporations the right to secretly fl ood political campaigns with tidal waves of cash on the eve of an election, they moved America closer to outright plutocracy, where political power derived from wealth is devoted to the protection of wealth. It is now official: Just as they have adorned our athletic stadiums and multiple places of public assembly with their logos, corporations can officially put their brand on the government of the United States as well as the executive, legislative, and judicial branches of the fifty states.

The decision in Citizens United v. Federal Election Commission giving “artificial entities” the same rights of “free speech” as living, breathing human beings will likely prove as infamous as the Dred Scott ruling of 1857 that opened the unsettled territories of the United States to slavery whether future inhabitants wanted it or not. It took a civil war and another hundred years of enforced segregation and deprivation before the effects of that ruling were finally exorcised from our laws. God spare us civil strife over the pernicious consequences of Citizens United, but unless citizens stand their ground, America will divide even more swiftly into winners and losers with little pity for the latter. Citizens United is but the latest battle in the class war waged for thirty years from the top down by the corporate and political right. Instead of creating a fair and level playing field for all, government would become the agent of the powerful and privileged. Public institutions, laws, and regulations, as well as the ideas, norms, and beliefs that aimed to protect the common good and helped create America’s iconic middle class, would become increasingly vulnerable. Th e Nobel Laureate economist Robert Solow succinctly summed up results: “The redistribution of wealth in favor of the wealthy and of power in favor of the powerful.” In the wake of Citizens United, popular resistance is all that can prevent the richest economic interests in the country from buying the democratic process lock, stock, and barrel. America has a long record of confl ict with corporations. Wealth acquired under capitalism is in and of itself no enemy to democracy, but wealth armed with political power—power to choke off opportunities for others to rise, power to subvert public purposes and deny public needs—is a proven danger to the “general welfare” proclaimed in the Preamble to the Constitution as one of the justifications for America’s existence.

In its founding era, Alexander Hamilton created a financial system for our infant republic that mixed subsidies, tariff s, and a central bank to establish a viable economy and sound public credit. James Madison and Thomas Jefferson warned Americans to beware of the political ambitions of that system’s managerial class. Madison feared that the “spirit of speculation” would lead to “a government operating by corrupt influence, substituting the motive of private interest in place of public duty.” Jeff erson hoped that “we shall crush in its birth the aristocracy of our monied corporations which dare already to challenge our government to a trial of strength and [to] bid defiance to the laws of our country.” Radical ideas? Class warfare? The voters didn’t think so. In 1800, they made Jeff erson the third president and then reelected him, and in 1808 they put Madison in the White House for the next eight years.

Andrew Jackson, the overwhelming people’s choice of 1828, vetoed the rechartering of the Second Bank of the United States in the summer of 1832. Twenty percent of its stock was government- owned; the rest was held by private investors, some of them foreigners and all of them wealthy. Jackson argued that the bank’s official connections and size gave it unfair advantages over local competition. In his veto message, he said: “[This act] seems to be predicated on the erroneous idea that the present stockholders have a prescriptive right not only to the favor but to the bounty of Government. . . . It is to be regretted that the rich and powerful too often bend the acts of government to their selfi sh purposes.” Four months later, Jackson was easily reelected in a decisive victory over plutocracy.

The predators roared back in the Gilded Age that followed the Civil War. Corruption born of the lust for money produced what one historian described as “the morals of a gashouse gang.” Judges, state legislators, the parties that selected them and the editors who supported them were purchased as easily as ale at the local pub. Lobbyists roamed the halls of Congress proff ering gifts of cash, railroad passes, and fancy entertainments. The U.S. Senate became a “millionaires’ club.” With government on the auction block, the notion of the “general welfare” wound up on the trash heap; grotesque inequality and poverty festered under the gilding. Sound familiar?
Then came a judicial earthquake. In 1886, a conservative Supreme Court conferred the divine gift of life on the Southern Pacific Railroad and by extension to all other corporations. The railroad was declared to be a “person,” protected by the recently enacted Fourteenth Amendment, which said that no person should be deprived of “life, liberty or property without due process of law.” Never mind that the amendment was enacted to protect the rights of freed slaves who were now U.S. citizens. Never mind that a corporation possessed neither a body to be kicked nor a soul to be damned (or saved!). Th e Court decided that it had the same rights of “personhood” as a walking, talking citizen and was entitled to enjoy every liberty protected by the Constitution that fl esh-and-blood individuals could claim, even though it did not share their disadvantage of being mortal. It could move where it chose, buy any kind of property it chose, and select its directors and stockholders from anywhere it chose. Welcome to unregulated multinational conglomerates, although unforeseen at the time. Welcome to tax shelters, at home and off shore, and to subsidies galore, paid for by the taxes of unsuspecting working people. Corporations were endowed with the rights of “personhood” but exempted from the responsibilities of citizenship. Th at’s the doctrine picked up and dusted off by the John Roberts Court in its ruling on Citizens United. Ignoring a century of modifying precedent, the court gave our corporate sovereigns a “sky’s the limit” right to pour money into political campaigns for the purpose of infl uencing the outcome. And to do so without public disclosure. We might as well say farewell to the very idea of fair play. Farewell, too, to representative government “of, by, and for the people.” Unless.

Unless “We, the People”—flesh-and-blood humans, outraged at the selling off of our government—fight back. It’s been done before. As my friend and longtime colleague, the historian Bernard Weisberger, wrote recently, the Supreme Court remained a procorporate conservative fortress for the next fifty years after the Southern Pacific decision. Decade after decade it struck down laws aimed to share power with the citizenry and to promote “the general welfare.” In 1895, it declared unconstitutional a measure providing for an income tax and gutted the Sherman Antitrust Act by fi nding a loophole for a sugar trust. In 1905, it killed a New York state law limiting working hours. In 1917, it did likewise to a prohibition against child labor. In 1923, it wiped out another law that set minimum wages for women. In 1935 and 1936, it struck down early New Deal recovery acts. But in the face of such discouragement, embattled citizens refused to give up. Into their hearts, wrote the progressive Kansas journalist William Allen White, “had come a sense that their civilization needed recasting, that the government had fallen into the hands of self-seekers, that a new relationship should be established between the haves and the have-nots.” Not content merely to wring their hands and cry “Woe is us,” everyday citizens researched the issues, organized public events to educate their neighbors, held rallies, made speeches, petitioned and canvassed, marched and exhorted. They would elect the twentieth-century governments that restored “the general welfare” as a pillar of American democracy, setting in place legally ordained minimum wages, maximum working hours, child labor laws, workmen’s safety and compensation laws, pure foods and safe drugs, Social Security and Medicare, and rules to promote competitive rather than monopolistic financial and business markets. The social contract that emerged from these victories is part and parcel of the “general welfare” to which the Founders had dedicated our Constitution. The corporate and political right seeks now to weaken and ultimately destroy it. Th anks to their ideological kin on the Supreme Court, they can attack the social contract using their abundant resources of wealth funneled— clandestinely—into political campaigns. During the fall elections of 2010, the fi rst after the Citizens United decision, corporate front groups spent $126 million while hiding the identities of the donors, according to the Sunlight Foundation. The United States Chamber of Commerce, which touts itself as a “main street” grassroots organization, draws most of its funds from about a hundred businesses, including such “main street” sources as BP, Exxon- Mobil, JPMorgan Chase, Massey Coal, Pfizer, Shell, Aetna, and Alcoa. Th e ink was hardly dry on the Citizens United decision when the Chamber organized a covertly funded front and fi red volley after volley of missiles, in the form of political ads, into the 2010 campaigns, eventually spending approximately $75 million. Another corporate cover group—the Americans Action Network— spent over $26 million of undisclosed corporate money in six Senate races and 28 House of Representative elections. And “Crossroads GPS” seized on Citizens United to raise and spend at least $17 million that NBC News said came from “a small circle of extremely wealthy Wall Street hedge fund and private equity moguls,” all determined to water down the fi nancial reforms designed to avoid a collapse of the fi nancial system that their own greed and reckless speculation had helped bring on. As I write in the summer of 2011, the New York Times reports that efforts to thwart serious reforms are succeeding. The populist editor Jim Hightower concludes that today’s proponents of corporate plutocracy “have simply elevated money itself above votes, establishing cold, hard cash as the real coin of political power. The more you spend on politics, the bigger your voice is in government, making the vast vaults of billionaires and corporations far superior to the voices of mere voters.”

Against such odds, discouragement comes easily. But if the generations before us had given up, slaves would be waiting on our tables and picking our crops, women would be turned back at the voting booths, and it would be a crime for workers to orga- nize. Like our forebears, we will not fix the broken promise of America—the promise of “life, liberty, and the pursuit of happiness” for all our citizens, not just the powerful and privileged—if we throw in the proverbial towel. Surrendering to plutocracy is not an option. Confronting a moment in our history that is much like the one Lincoln faced—when “we can nobly save or meanly lose the last best hope on earth”—we must fight back against the forces that are pouring dirty money into the political system, turning it into a sewer.

How to fight back is the message of this book. Jeffrey Clements saw corporate behavior up close during two stints as assistant attorney general in Massachusetts, litigating against the tobacco industry, enforcing fair trade practices, and leading more than one hundred attorneys and staff responsible for consumer and environmental protection, antitrust practices, and the oversight of health care, insurance, and financial services. He came away from the experience repeating to himself this indelible truth: “Corporations are not people.” Try it yourself: “Corporations are not people.” Again: “Corporations are not people.” You are now ready to join what Clements believes is the most promising way to counter Citizens United: a campaign for a constitutional amendment affirming that free speech and democracy are for people and that corporations are not people. Impossible? Not at all, says Clements. We have already amended the Constitution twenty-seven times. Amendment campaigns are how we have always made the promise of equality and liberty more real. Difficult? Of course; as Frederick Douglass taught us, power concedes nothing without a struggle. To contend with power, Clements and his colleague John Bonifaz founded Free Speech for People, a nationwide nonpartisan eff ort to overturn Citizens United and corporate rights doctrines that unduly leverage corporate economic power into political power. What Clements calls the People’s Rights Amendment could be our best hope to save the “great American experiment.” To find out why, read on, and as you read, keep in mind the words of Theodore Roosevelt, a Republican, who a century ago stood up to the mighty combines of wealth and power that were buying up our government and called on Americans of all persuasions to join him in opposing the “naked robbery” of the public’s trust:

It is not a partisan issue; it is more than a political issue; it is a great moral issue. If we condone political theft, if we do not resent the kinds of wrong and injustice that injuriously affect the whole nation, not merely our democratic form of government but our civilization itself cannot endure.