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Mark Green

Mark Green

Posted: January 21, 2010 11:37 AM

The Court Allows a Katrina of Corporate Money

What's Your Reaction:

Today's 5-4 Supreme Court ruling is the second shoe to drop this week clobbering democracy. First was the combination of the filibuster's 60 seat rule and Scott Brown's election. Now the Court permits corporate money -- 17 times larger than labor money -- to overwhelm the levees of democracy.

The narrow issue in Citizens United v. Federal Election Commission was whether a group distributing a virulent anti-Hillary Clinton film in the 2008 presidential campaign ran afoul of the McCain-Feingold law's prohibition of independent expenditures just before an election. Already we have a compromised democracy when 0.1 percent of Americans who contribute $1,000 or more in federal elections have more influence that the other 99 percent. But now that the Court's conservatives bloc of Roberts, Scalia, Alito, Thomas and Kennedy allow such unlimited corporate electioneering if uncoordinated with a candidate, any corporation or trade group could threaten to spend, say, $10 million to defeat a sitting legislator if he/she didn't toe the company line.

How many state or federal legislators could stand up to a corporate lobbyist, with a history of independent ads, saying that "our people feel very very strongly about this bill" (i.e., you have a nice career and we hope nothing happens to it)?

From the start, there's been a contest between a democracy of voters and an economy of capital. In a May 1792 letter, Thomas Jefferson urged President George Washington to rally people into a party that "would defend democracy against the corrupt ambitions of monied interests." In 1904, Teddy Roosevelt was embarrassed by publicity that he relied heavily on corporate contributions to win the presidency. He was spurred to propose and enact the 1907 Tillman Act, prohibiting corporations from contributing to candidates because of the fact or appearance of purchased politicians. The law, as later amended and strengthened, was last conclusively upheld in the 1990 case of Austin v. Michigan Chamber of Commerce as the Court majority reasoned that "corporate wealth can unfairly influence elections."

Then, in the post-Watergate moment in 1974, Congress enacted a strong campaign finance law limiting and disclosing contributions from individuals and PACs. And in 2002, the McCain-Feingold law, among other things, closed a loophole that allowed companies to spend money "independently" just before elections designed to defeat targeted candidates, a provision upheld in 2003 in McConnell v. FEC.

So how did we get to the flashpoint where today's Court ignored law and overruled long-standing precedent to allow corporations again to dominate our politics? A little 
judicial history is necessary. 
In the 1886 case of Santa Clara County v. Southern Pacific Railroad Co., involving a routine local tax matter, the court reporter incorrectly put as the formal "headquote" of the decision something that was never argued or decided, namely that "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." As Thom Hartmann describes well in his book Unequal Justice, this "decision" then became to be regarded as black-letter law, meaning that, in Justice William O. Douglas's later lament, "corporations were now armed with constitutional prerogatives."

Cut to 1976 when, in a poorly reasoned decision in Buckley v. Valeo, a 6-3 Court concluded that while donations could be restricted as potentially corrupting, there should be no ceiling on expenditures since that could be like limiting speech itself -- which commentators have simplified into the ethic that money = speech.. (Really? So laws against bribery are unconstitutional because the payment of money to a decision-maker is mere speech?)

Now comes Citizen's United, where in oral argument this past June 29, an FEC lawyer gave the wrong answer to a Justice Scalia question about whether, if the FEC could ban a film that functioned as an attack ad, it could also ban a book attacking a candidate. Instead of saying that books had special first amendment protection, unlike ads in the guise of films, he answered "yes," producing gasps. The result: a decision that supports the worst aspects of Santa Clara and Buckley. Now a multi-billion, multinational corporation -- a legal fiction created in perpetuity -- is constitutionally just like a grandma on a soap box when it comes to influencing elections. Or as author David Kay Johnston nicely put it, "imagine, vocal chords on a Cayman Islands post office box!"

The conservative majority hypocritically ignores their usual complaints about activist courts overruling precedent based on their preferences -- recall here the confirmation hearings of Chief Justice Roberts when he said that precedent should not be overruled unless there were serious questions about whether the prior decision was arbitrary, unworkable or "eroded by subsequent developments." What subsequent developments occurred to change years of decisions?

Instead of being judicial activists substituting their judgment for several Congresses, the Court could easily conclude that, factually, it's one thing for a corporation to use money to buy another company, but quite another to buy a congressman -- one thing to finance any contributions from political action committees based on voluntary funds, quite another from general revenue that reflects not values, but merely business success. Or the Court could have ruled against the FEC on the narrower grounds that McCain-Feingold and other restrictions on corporate donations applies to political ads, not films or books.

Democratic congressional leaders and campaign finance reformers have to now immediately meet to map out a strategy beyond waiting seven years for Obama to replace a conservative justice with a progressive one. One idea is a drive for a constitutional amendment to reverse Citizen's United. But even beyond the difficulty of getting three-quarters of state legislatures to go along (see: Equal Rights Amendment), that seems untenable precisely because of the Catch 22 that business interests will be free to spend massively in ads to avoid that result. Until there's a strategic breakthrough, unions and Democrats will have to more aggressively use the Obama-Internet model to generate the kinds of small funds that collectively start to offset what business interests can and will do.

At the least, congressional Democrats need to push hard and often for legislation establishing public financing of congressional elections. Though it cannot overcome the Senate's filibuster now, a clean money bill (proposed by Senator Carl Levin) can at least draw sharp lines this Fall, forcing faux Republican populists into choosing to be on the side of big business interests or consumer interests. Let the next Scott Browns explain how they can be outsiders while encouraging big inside money.

This blog is an updated version of a previous post that that was written before the Court's decision.

 
 
 
 
 
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07:22 PM on 01/22/2010
The late California pol Jesse Unruh said it best: "Money is the mother's milk of politics."

The Citizens United ruling frees everyone (of all political persuasions) to pool their funds in specially chartered non-profit corporations for electioneering purposes. Well-heeled class traitors (basically FDR's ilk) can now join with legions of small donors in very amply funding newly minted left-liberal electioneering non-profits to effectively spread the messages of third parties and their maverick candidates or populist Democratic insurgent challengers to corporate friendly Democratic incumbents.

Whether so intended or not, it is a cure for the sclerosis to our body politic that has been caused by the worst-of-all-worlds limits on donations to individual candidates, complicated PAC rules and the hellish Orwellian FEC enforcement bureaucracy that has made participating in politics far too intricate and intimidating.

As to the potential "drowning out" problem, there is only so much bandwidth available to electioneers during election season. Only so many political ad slots on tv and radio, only so many websites and print media outlets to advertise on, only so many organizers to go door-to- door, only so many rallies and debates one can attend, etc.

Once there is enough money to effectively get a candidate's message out eloquently to the multitudes, it becomes a war of ideas and character of the competing candidates or cause's advocates.

That is a fight real progressives can and will win.

Eric C. Jacobson
Public Interest Lawyer
Culver City, California
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WhitneyKyle
12:08 AM on 01/23/2010
Leave it to a lawyer to spin a scenario where more money in the system will level the playing field. With limited avenues to get out a candidates message, as he states, the side with the most money takes the most media time. He states well heeled class traitors will bail out the candidates of the people's point of view and balance the playing field? Is he serious in thinking we readers will buy into this b.s.? Isn't he really pushing his own self interest over the public interest? I surely believe so.

This is a fight real progressives can't win and won't win.
There are just not enough class traitors in America to overcome the corporate loyalists.
01:42 AM on 01/23/2010
Whitney:

Everybody is against lawyers until they need one. I get that.

We simply disagree. I believe there are more than enough class traitors to amply fund public interest oriented candidacies (not my own if that's what you're thinking -- been there, done that) that will finally elevate a cadre of pols with the fortitude and talent to run circles around the right.

Many well-heeled types "get" that our society has veered dangerously off course towards perilously excessive class stratification domestically and military adventurism abroad. These people can and will step up once the contours of the new political landscape and groundrules come into view.

I repeat, once candidates or their supporters have the ability to spend the threshold sum (not small) required to run a dignfied and effective campaign, the ability of one side or the other to spend money is the political equivalent of bombs that make the rubble bounce.

(If broadcasters did dare auction off available commercial time during the final stages of a campaign to the highest bidder, in effect, allowing the message of rightist candidates to dominate the airwaves during the critical run up to election day, that would have to prevented "by any means necessary". Presumably legislation would suffice.)

The Supreme Court has just administered an angioplasty to the American body politic's hardened arteries. The job of progressives now is, like Joe Hill said, not to mourn but rather to organize "one, two, many" electioneering non-profit corporations and take back America.

Eric
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exsongbird
stop making war. period.
04:45 PM on 01/22/2010
Remember "Animal Farm"........
"all pigs are equal, it's just some pigs are more equal than others"
The corporations are now more equal than "we the people", because they have
millions to spend, and the more money you have the more "free speech" you have.
The Supreme Court (or the five that supported this travesty) basically demoted 99.99% of the people in this country into second class citizens, and thumbed their noses at us while doing it.
Orwell was a visionary of things to come..........
03:43 PM on 01/22/2010
The Supreme CEOs
Nobody said that the people who own business cannot give bonuses. The stock holders own the corporations. Each stock holder should have the right by law to decide what fraction of his investment (if any) in the company should be used for a bonus. Some stock holders will give and some will not. Those who are losing money should not be forced to give bonuses.

The stock holders are also voters. They should decide how much of their money goes into supporting any given candidate. Union members should also vote and decide.

Speech is not an anonymous entity. Ghostwriters do not cash paychecks. The real writers do. The donations will either be the free speech of the CEOs or the Stock holders.

When money talks, you do not have to listen. But, when money votes, you still have to count them.
The president should not punish the stock holders because the management teams decided to give themselves bonuses. The stock holders are frustrated and are pulling back. They will also return the favor with their votes.
We went from "too big to fail" to "too rich to be challenged" The only way to regulate the supreme CEOs is by giving stock holders the power to regulate compensations for the technicians who run the corporations and the power to decide how to contribute to the political process.

Thank you!
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demshuff
Clinton/Warren 2016
03:26 PM on 01/22/2010
Looks like Joe Lieberman had this thing figured out long time ago.
10:45 AM on 01/22/2010
There are TWO ways to reverse a Supreme Court ruling. The first, a constitutional amendment, is impractical in the time before corporations have such control of the political system that an amendment is totally impossible. The second, having the court reverse itself, is doable immediately.

The five conservative justices who voted for this travesty are not likely to change their minds. They are also young enough and apparently healthy enough that waiting for one of them to leave the Court in time to prevent permanent damage to the Republic is a poor bet. So, redefine the majority by increasing the Court from nine to eleven members and giving Obama a chance to appoint two new justices. This would be perfectly legal since Article III gives the Congress authority to set the size of the Court.

As for the almost inevitable filibuster, break it using the Republicans' own "nuclear option" of 2005.

As for attempts to legislate restrictions on corporations to limit the damage, I support such efforts if only to buy time. However, a Court that will so cavalierly overturn 100+ years of law and precedent will almost certainly declare unconstitutional any meaningful restrictions.

I am aware that "packing" the Court would ignite a political firestorm and of the history of FDR's attempt in 1937. Under normal conditions, I would argue against court packing and the nuclear option, but these are not normal times and the alternatives are far worse.
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MoscowMoo
Mooing for a better America
07:37 AM on 01/22/2010
This is a bleak, sad day for America. Despite the author's ideas that this mess could possibly be turned around with legislation or a special constitutional amendment, I think that is just pie-in-the-sky wishful thinking. With the spending restrictions lifted, corporations can throw as much money as they want to derail any such legislation by turning the public completely against it. Just think about how the insurance companies have derailed healthcare reform. Healthcare reform started with over 70% of Americans in favor. After the barrage of anti-reform ads, rallies, and other death panel nonsense generated by the insurance lobbies, it is now a scant 40% who still support it. And that was accomplished when corporations still had limits on their political spending. Nope, our democracy, as of this day forward, is now a corporatocracy.
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ReedYoung
global mean temperature, obviously INCREASING
05:58 PM on 01/21/2010
If corporations have the rights of humans, I ask you to be my accomplice in multiple counts of aggravated murder, starting with Exxon-Mobil, Texaco-Chevron, Conoco-Philips, Monsanto, every coal business and Archer Daniels Midland.

Congressional Republicans perceive no need to negotiate on health care reform, and so far they're right. They can gain few if any votes by supporting any public health care option and absolutely increase in their campaign donations from their current list of sponsors, which are overwhelmingly corporate.

But reward is not the only kind of incentive Congressional Democrats can use, and health insurance corporations are not the only donors that are owed favors from Congressional Republicans. They obviously don't want to negotiate, but they can be forced to, by taking away the $70,000,000,000 ($70 Billion) of federal subsidies per year from corporate producers of petroleum, coal, and corn ethanol which also happen to be major corporate donors to Republicans.
http://www.grist.org/article/2009-09-22-fossil-fuel-subsidies-dwarf-clean-energy-subsidies-obama-wants
The time is right, as the House and Senate conclude health care negotiations, to divide the opposition.
http://www.reedyoung.org/politics/general_welfare/medical_care/2010/01/10/

Please sign
http://www.thepetitionsite.com/4/stop-giving-taxpayers-money-to-corporations-who-fight-against-our-right-to-medical-care
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05:03 PM on 01/21/2010
Really? A Katrina of corporate money? That was the best analogy you could come up with?
Weehawk
Flying without a kite string
04:44 PM on 01/21/2010
Wait, if money = speech, then it stands to reason that speech = money.

From now on, I'm not going to pay for anything, I'll just talk to them for 1 minute per dollar and call it good. Okay? Okay.
04:00 PM on 01/21/2010
I'll say hear what I said earlier.

The court forgot the USA is the "united" states only as long as people believe in it.

As that belief dwindles further, all bets are off.
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05:05 PM on 01/21/2010
If you're going to secede I think you should start with the internet first, please.
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carbolaw
02:29 PM on 01/21/2010
Perhaps the best avenue, in addition to Grayson's path of passing legislation after legislation that Corps will have to argue in court as being Unconstitutional, is the path a turning to states. States grant charters to these corporations and they do so under state laws. The race to the bottom led to the current carte blanche charters and the refusal to ever revoke a charter, perhaps we can see a race to the top and a renewed effort to invoke real corporate charters with limitations and to revoke charters when corps overstep these bounds. I would also have to read the current opinion, but perhaps this also leaves the door open for a more serious challenge to the Santa Clara "Ruling" as it is now becoming more and more well known that the rule from this case (ie Corporate personhood) was at best incorrect dicta.
02:25 PM on 01/21/2010
There is already very little democracy left so this just makes the death official. Choosing between two corrupt political parties who disagree only in rhetoric and rarely in substance is hardly democracy.
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05:06 PM on 01/21/2010
Sure, except for the whole choosing part.
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Rudderman
GOP: All fringe, no carpet.
02:11 PM on 01/21/2010
When the Court decided to shut down the Florida recount and basically hand W the White House, I thought that was the worst possible decision they could ever reach. Now this. For some reason I actually believed they existed to protect democracy. Silly me.
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Stephen Herrington
01:05 PM on 01/21/2010
An impossibly irresponsible ruling. There is a mountain of canon law that recognizes the impossibility of treating business entities as equivalent to a person. A corporation can't be imprisoned, can't vote, can't hold property in life estate, etc. A corporation exists for the primary reason of insulating the shareholder from responsibility for actions of the corporation. Granting the liberties of a person to a corporation while the corporation is then immune from personal consequences is, in effect, creating a super citizen beyond the law. My fellow Americans, you now have a status similar to a slave in the original Constitution, counted as half a person, or worse. A black day for law, liberty and reason.
01:37 PM on 01/21/2010
So in the God and Reason, what can we do? Seriously? Truly it is not hard to imagine this leading to violent action. At a minimum, expect to see serious movements in some states to escape the now undenial tyranny of corporations.
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Stephen Herrington
02:14 PM on 01/21/2010
http://www.huffingtonpost.com/stephen-herrington/am-i-free-to-speak_b_293647.html

The Constitution needs to be clarified with an amendment on speech. The prospect of that happening is dininished by the ruling itself. The first and highest priority of our people and their representatives has to be campaign reform to level the field. Everything else will follow.
06:25 PM on 01/21/2010
Also the scariest development here in my lifetime. Combine that with the deplorable Kelo decision, and you really do come out with our slave status. Now not only can any corporation TAKE your personal property (home) away JUST BECAUSE THEY CAN USE IT TO MAKE MORE MONEY than YOU can, but our right to have legislation by Congress on our behalf is gone (the few examples we did have where the intent was to limit corporate spending), and we are all drowned out.
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Rooster54
01:04 PM on 01/21/2010
As if corporations didn't already have enough control over everything, now this. Welcome to the great American plutocracy, folks. Might as well forget about voting for any poitician unless you own one, and if you can't afford one, you're just SOL.