Best of the Week
Most Popular
1.War on Cash, Bank of England Planning Hyper QE, Scrapping Cash for Digital Currency - Nadeem_Walayat
2.Stock Market End Run Smash Crash Looks Imminent... - Clive_Maund
3.Europe Refugee Crisis, UK to Repatriate 120,000 Hungarian Economic Migrants Back to Hungary - Nadeem_Walayat
4.The Great Deflation Will Destroy All Bubbles – These Too - Harry_Dent
5.Deflation Signals Abound for U.S. Dollar, Forex Markets and Commodities - Rambus_Chartology
6.U.S. Housing Market Two Outs in The Bottom of The Ninth - James_Quinn
7.Poland, Czech, Slovakia and Hungary Refugee Hypocrisy After Flooding UK with 4 Million Economic Migrants - Nadeem_Walayat
8.The Two Real Reasons Crude Oil Prices Are Currently Slipping - Dr. Kent Moors
9.R.I.P. Interest Rates - Andrew Snyder
10.Steps from a Deep October Stock Market Selloff - Bob_Loukas
Last 5 days
A Key Oil Price Trend That Everyone Is Missing - 6th Oct 15
Stock Market Turn Appears to Have Been Made - 6th Oct 15
Designing a Dividend Growth Portfolio for a Specific Retirement Yield Objective - 6th Oct 15
Peter Schiff Predicts Gold Price Breakout - Video - 6th Oct 15
Theresa May Declares War on Immigration - Conference Speech Full Transcript - 6th Oct 15
Is Russia Plotting To Bring Down OPEC? - 6th Oct 15
Target Date Funds As Aid In Retirement Investment Portfolio Design - 6th Oct 15
Stocks Bear Market Apocalypse Imminent Crash Gets Nuked Again - 6th Oct 15
Redesigning Internet and Facebook to Explore Their Full Potentialities... - 5th Oct 15
Nightshades Curb Your Enthusiasm - 5th Oct 15
U.S. Recession Watch, High-Yield – Rising Defaults - 5th Oct 15
The Social Challenge to Find Humanity in Capitalism - 5th Oct 15
Fed Interest Rate Hike: "I don't care. It doesn't really make much of a difference" - 5th Oct 15
Gold Rose 2.2%, Silver Surged 5.4% After Poor Jobs Number On Friday - 5th Oct 15
Gold, Silver Precious Metals: a Critical Week Ahead - 5th Oct 15
Stock Market Correction Still in Force - 5th Oct 15
Gold Price Change in Character - 5th Oct 15
Putin’s Blitz Leaves Washington Rankled and Confused - 4th Oct 15
More Selling for Stock Market, Gold? - 4th Oct 15
Gold And Silver – A Reality Check - 3rd Oct 15
Stock Market Primary IV Still, or Primary V Underway? - 3rd Oct 15
The Oil Industry’s Day of Reckoning - 3rd Oct 15
U.S. Interest Rate Hikes Keep On Slippin' Into the Future; Treasury Yields Sink Again - 3rd Oct 15
China's Stock Market Crashing; Time for Panic or Restraint - 3rd Oct 15
SPX Stocks Bulls Struggle to Regain the Upper hand... - 2nd Oct 15
The Two Faces of Stock Market Volatility - 2nd Oct 15
Money Supply and the Fed’s Serious Inflation Risks - 2nd Oct 15
Stock Market How Bad Can This Get, And How Fast? - 2nd Oct 15
A Worrying Set Of Recession Signals - 2nd Oct 15
Negative Jobs Report Sents SPX, TNX Lower - 2nd Oct 15
Don't be Fooled by the Recent Equity market Rallies. Its a Bear Market, Stupid! - 2nd Oct 15
US Bond Market - How to Fix This - 2nd Oct 15
Survival Secrets from Colorado Resource Investing Front Lines - 2nd Oct 15
What Two Risks From Rising Interest-Rates Could Each Trigger A New Global Crisis? - 1st Oct 15
Stock Market S&P 500 Volatility-Based Price Probability Range - 1st Oct 15
Dow Stock Market About To Crash Like October 1929? Get Your Physical Silver - 1st Oct 15
Stock Market Negative Expectations Once Again - Will It Break Down? - 1st Oct 15
Advice for Biotech Investors: 'Hold Your Powder' 'til Winter - 1st Oct 15
Best Short-Term Commodity Market Opportunities - Video - 1st Oct 15

Free Instant Analysis

Free Instant Technical Analysis

Market Oracle FREE Newsletter

Surpreme Court Ruling that Corporations are People Too?

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

By: Andy_Sutton


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

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

Andy Sutton Archive

© 2005-2015 - 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

Biggest Debt Bomb in History