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Problems with "Presidents Day" by Tom Eddlem at LewRockwell.com; but let’s not just "restore Congress," but amend Constitution to limit the federal government

February 15th, 2010 No comments

I encourage readers to take a look at the excellent essay by Thomas R. Eddlem, Down With the Presidency! A President’s Day Message, now up at LewRockwell.com.

I quote first a few key portions, and then note my further thoughts.

But the role of the president under the U.S. Constitution is not to make laws. It is simply to execute the laws passed by Congress. Article I, Section 1 of the U.S. Constitution begins: “All legislative powers herein granted shall be vested in a Congress of the United States.” Since the Constitution mandates that “all” law-making powers reside in the Congress, none are left for the president. The president’s job is that “he shall take care that the laws be faithfully executed” under Article II, Section 3 of the U.S. Constitution. Constitutionally speaking, the president was designed by the founders to be nothing more than the errand-boy of Congress.

Obama won’t be the first to take us from the “rule of law” to “rule by one man.” The Bush and Clinton administrations paved the way for unconstitutional executive orders. Clinton advisor Paul Begala told the New York Times of Clinton’s executive orders: “Stroke of the pen. Law of the Land. Kinda cool.”

President Bush and his neo-conservative theoreticians were even worse, as they posited the idea that the president was above all law. Former Bush Assistant Attorney General John Yoo’s recent book Crisis and Command contends presidential powers are unlimited by any law: “The executive was, rather, the servant of necessity, bound to act in accordance with, in the absence of, or in extraordinary emergencies, in defense of the republic, even contrary to regularly constituted law.”

This is the authoritarian personality long championed by both much of the Democratic leadership on the “left” and all of the neo-conservative Republicans on the “right.” Neo-conservatives like John Yoo explicitly endorse the idea of an omnipotent presidency that erases all the rights of the people. In his wordy and overpriced book, Crisis and Command, John Yoo claims the Constitution created a president with unlimited powers. The Constitution of the founders, Yoo wrote, “did not carefully limit the executive power, as [it] did with the legislative, because they understood that they could not see the future.”  …

This is what the modern presidency has become, a new Caesar whose powers are without limit.

Unfortunately the national leadership of the Republican Party has bought wholly into Yoo’s argument that government gives out rights instead of God, and that government ought not to “give” rights to people we don’t like. … 

It’s true that the average American Fox-servative remains ignorant of these facts, because we won’t hear the details of tortured innocents like Maher Arar, Khalid el-Masri, Omar Deghayes or the Tipton Three on the Fox News Channel. Nor will the Fox News Network tell its audience that the Obama administration has openly ratified all of these Bush-era attacks on the Bill of Rights except for the torture. Fox-servatives love the dictatorial state; they just wish it were run by the party of Pompey instead of the party of Caesar.

 

All of the really bad ideas that the federal government initiated throughout our nation’s history originated with the office of president: This includes most of the wars as well as warrantless surveillance, detention without trial, torture and all of the socialist legislation since the New Deal. Each was only adopted by the president pushing Congress, or more recently, by a president ignoring Congress altogether.

The presidency itself needs to be knocked down from its perch. The only thing that will save the American republic is a renewed focus upon the Congress and cutting down the presidency to size. The founding fathers designed the legislature – Congress – to be the dominant branch of a very small federal government.

My additional thoughts? I copy them from an email that I sent to Tom Eddlem (links added and typos fixed, nacherly):

Tom, great, perceptive piece at LewRockwell.
 
However, you missed that officially it’s still “Washington’s Birthday”, a focus that would help further illustrate how the Unitary President/CIC role has run out of control. Washington – who could have had much more power and refused – would certainly shudder at the “liberties taken” by later presidents (double entendre intended).
 
Also, why no mention of the obvious need to breathe more life into our federal system? One way to limit the power of the President (and Congress & Supreme Court) is to restore it to the states.

Those now pushing for a Constitutional Convention – from Larry Lessig seeking to limit corporate influence on elections and on legislation, to those who want to ensure that only people (not corporations) have Constitutional rights [and fix the glaring legislative error by the Supreme Court in granting Constitutional “free speech” rights to corporation (which are THINGS, not people)], and to those seeking to limit Commerce Clause and restore the 9th and 10th Amendments – could use more cheerleaders!

Not criticism, but food for thought.

Speech and Sociopaths: Does it make sense to collapse, for Constitutional and legal purposes, the distinctions between human beings and corporate "persons"?

February 11th, 2010 No comments

Further to my preceding posts on corporate “free speech”, let me copy here for those interested some parts of a post by legal blogger/law prof Kimberly Hauser, and excerpts of the comment thread (emphasis added).

Says Hauser:

Justice Kennedy stated in the majority opinion: “If the First
Amendment has any force, it prohibits Congress from fining or jailing
citizens, or associations of citizens, for simply engaging in free
speech.”  Hold on, Emily Litella, since when is a corporation an
“association of citizens.”  The last time I checked, they were
state-chartered entities organized for the purpose of operating a
business, making a profit, and sheltering the organizers of the
business from personal liability.  I don’t think anyone would mistake
one for an “associations of citizens.” 
This decision is a travesty on
a number of levels, but as I discussed with my classes today,
corporations are not humansThomas Jefferson stated: “A bill of
rights is what the people are entitled to against
every government on earth, .  .  .”  These rights are human rights,
essential to our type of government.  They should not be cheapened by
their extension to corporations. 
(I do understand that corporations
have been given “rights” over the years by the Supreme Court, starting
with Santa Clara County v. Southern Pacific Railroad Company.  I just don’t agree with that line of decisions.  And while I agree with Stevens’s Dissent in Citizens, I don’t agree with his adherence to the “corporations are people too” position.)

From the comment thread:

… The root of the problem is that corporations are divorced from their
owners, who have been given a grant of limited liability for the risks
they shift to society, a cloak of anonymity by which they can behave
irresponsibility and seek favors from government, as well as unlimited
lives and deep pockets to make persistent efforts to corrupt.


on February 7, 2010 at 4:27 am | Lampie The Clown

… You mentioned the Santa Clara case as the start of
corporate personhood, without mentioning that it was sleight of hand
and not a real ruling on the subject. That’s exactly what the clerk was
counting on, and why it worked. Just thought I’d tell the rest of the
story.

Actually, long before the Santa Clara case, the legal fiction of
corporations as people was established to include five legal rights—the
right to a common treasury or chest (including the right to own
property), the right to a corporate seal (i.e., the right to make and
sign contracts), the right to sue and be sued (to enforce contracts),
the right to hire agents (employees) and the right to make by-laws
(self-governance). They were given the rights they needed to do the
only thing they were designed to do. Conduct business.

They are amoral, profits and self interest as highest priority are
mandated by law to be part of their design, and they have limited
liability. This gives them the “personality” of a sociopath, and makes
them unsuited by design to using free speech responsibly.

With the current design, the only solution I can think of is to have
Asimov’s “three laws of robotics” made part of all corporate charters. ….

 

One commenter defended the Court with a straight face:

A
Corporation IS an “association of citizens”– those citizens are the
shareholders, i.e., owners of said corporation, who associate ever so
often (annual meetings, and other special occasions)
….

And as for objections to “corporate personhood”, as a person is
created by human parents and grows in a mother’s womb, so too is a
corporation. It is created by the (human) people who sign its original
charter, and the “womb” that allows the corporation to be ‘born’ is
that of the [government] agency that grants corporate charters. The difference
between the two different types of “births” are, in my opinion,
negligible.

(Eventually, human embryos won’t have to be implanted into a person
in order to be born– so the “birth from a human” objection will cease
to have merit.)

As for Lampie’s argument that corporations have “the personality of
a ’sociopath’, (which) makes them unsuited by design to using free
speech responsibly”, this argument that discriminates against REAL
sociopaths (who as far as I know, STILL have their free speech rights
unencumbered by the SCOTUS decision or any comments you’d make to the
contrary). Sociopaths have rights, too!

My sense of humor is a bit underdeveloped, so at first I ignored the “sociopath” assertion and penned a straight response regarding the “association” assertion:

Shawn, several points:

while real people do associate to form a corporation, a corporation
remains a legal fiction created by governments, not the people
“associating” with it. It is legally separate and distinct from them and their
ownership right is considered property.

– Since a corporation is peoples’ property, those [people who own it] have
Constitutional rights to make sure their property is not unjustly or
without due process taken by government.

Other forms of property, like human slaves, were not considered
citizens and did not have Constitutional rights, including a right to
speak.
If slaves and inanimate things couldn’t/can’t speak for Constitutional
purposes, neither does it make any sense to argue that corporations – as
opposed to the people in them – can “speak” under the First Amendment.

– Further, it is crystal-clear that the Founding Fathers hated
corporations, and the ability of states to closely restrict them and to
impose conditions on the privileges and rights they received was
uncontested. It is a radical and profoundly non-originalistic step to
conclude, as the Roberts/Scalia court did, that the Founding Fathers
intended [in the Bill of Rights] to provide Constitutional speech rights to corporations.

Then, getting the joke about sociopaths, I couldn’t resist making a didactic point:

Shawn,
presumably your comment is wholly tongue-in-cheek, but let me note that
we hunt down and lock away (and even execute) sociopaths – thus
depriving them not merely of their speech, but of their ability to harm
us and even their existence in some cases.

If corporations are by nature sociopathic, then we by all means ought to do the same.

Note that we don’t need to lock up corporations; we can find various
ways to change their nature, control their bad behavior and limit their
ability to hurt us – the simplest way, of course, would be to simply
eliminate the limited liability of their shareholders, who would then
have every incentive to control what their [not-so-]little Frankensteins do.

Historic Times: A libertarian view on what liberal Larry Lessig has missed regarding our broken, corrupt government

February 10th, 2010 No comments

I won’t reprise the essay referred to in my preceding post, by which Lawrence Lessig presents his view of our current problems (much of which I agree with, including his conclusion that the “conservative” Roberts Supreme Court five-Justice bloc has acted with considerable activism in overturning centuries of law-making, in a manner that cannot be seen as consistent with any “originalist” interpretation of the Constitution, and that fruits and prospects of such activism are likely to frustrate further legislative attempts at fixes).

While I agree with Lessig’s call for a movement for the Several States to convene a Constitutional Convention, let me note that his analysis certainly has some serious short-comings and blind spots. In my view:

(1) Lessig completely
misses the real root of corruption, which is the grant by states to corporation owners of legal entity status in which owners had no liability for acts of the corporation (unless they specifically directed such acts), which grant was initially jealously guarded and carefully
restricted.
The trickle from this hole in the dike became a flood,
as wealthy investors – eager to fund risky businesses that might give
them great profits while shifting risks to unconsenting third parties –
pressured state lawmakers for a snowballing liberalization – which saw the removal of limits on corporate purposes, corporate life, and corporate ability to own other corporations. As I have discussed repeatedly, the result of the multiplication of
activities, power and negative impacts of limited liability corporations (including their
successful pressuring of courts to eliminate common law tort doctrines that once strongly
protected the rights of property owners, in favor of a social utility balancing) has been a corresponding rise
in demands by citizens that law-makers act to constrain corporate activities, which in turn has produced a steadily escalation in the fight over the wheel of government.

(2) As a
result of this oversight, Lessig fails to consider (i) whether the
states can provide any check on corporate influence via their power to
condition the grant of incorporation/foreign corporation status
(short
of a Constitutional Amendment eliminating corporate “personhood” for
civi rights purposes), instead suggesting that Congress might insist
that corporations engaged in interstate commerce be federally
incorporated and limited and (ii) whether states and federal
governments might regulate BETTER by easing the regulation of
partnerships, similar associations and corporation that have unlimited
liability
, and whose owners have direct incentives to make sure
their executives do not engage the business in activities that generate
a significant risk of liaibilty to others

(3)
Lessig ignores that the reason corporations and labor pour money into buying
favor in Washington is because the federal government is too busy
selling favors
, and such investments pay off – particularly where a
single party gains monopoly control over the pork spigots. Lessig seems blind to considerations of federalism and limited
government, in favor of the premise that anything the people in Congress assembled want to do is okay
, as long wealthy corporations aren’t able to spend money on swaying the election of Congresscritters or buying votes, and if retired Congresscritters are not allowed to pasture too close to Congress..

(4)  As a result, Lessig
fails whether rent-seeking can be checked in part by restoring the once vital
check and balance provided by a vibrant role of states under the
originally envisioned federal system
. For the purposes of restoring power to states, various conservatives have recently been suggesting (i) a reinvigoration of the moribund Tenth Amendment,
which states that non-delegated powers are reserved to the states and
the people (the Supreme Court assisted the federal government in
killing this part of the Bill of Rights via expansive interpretations
of the authority of Congress under the general welfare clause, the
Commerce Clause and the 14th Amendment) and (ii) repeal the requirement of direct elections of Senators under the 17th Amendment, which is argued to have better enabled election pandering and influence by corporations and by national parties.

(5) Finally, Lessig misses that the real reason why the conservative block on the
Roberts Court struck down limits on direct corporate spending
on
political campaigns
(speech is wide open; direct donations to campaigns remain limited, but
will eventually fall on the corporations=persons doctrine) is that the Supreme Court had gradually allowed a two-part corporate speech structure to grow, with speech by “media” corporations being unlimited
(“freedom of the press” getting a separate mention in the First
Amendment), but political speech by other corporations being heavily
regulated
by Congress.

This very imbalanced structure was long resented
by the right, due to the perception that the dull, corporate,
conglomerate”MSM” had been “captured” by ideological enemies on the
left. Resentments began to run the other way with the establishment of
FOX and various corporate-funded “thinktank” groups by the right (which seems heavily invested in the idea #CorpSpeak without, apparently, making any examination of the premises that inanimate legal fictions much different from other human associations have rights to speak and influence to government), but the Roberts court felt that the influence of the “liberal” corporate media was still too strong, and decided simply to do its best to bring down the entire edifice of “media speech” versus #CorpSpeak distinctions.
The Roberts Court appears to have been too timid or incurious to
address the fundamental problems relating to speech by inanimate
institutions with far greater power and far less community check than
individuals, and so blinked at that opportunity, instead opting for
the far lesser but still extremely activist step of taking a demolition
ball to legal restrictions on competition in the flow of ideas from corporations
.

For the curious reader, I note again my preceding posts on  corporate “free speech”.

Those who want to get further stirred up might want to give another
listen to the new music video Anthem of what our Founding Fathers said
to King George:  It’s Too Late to Apologize.

Historic Times: Larry Lessig calls for Constitutional Convention to fix our corrupt, broken government

February 10th, 2010 No comments

Lessig doesn’ expressly say it, but we also need to rein in the “self-evident”, “unalienable rights” of all corporations

Actually, the last quip in the title are my words, not Lessig’s.

Last week, I noted Harvard law prof Lawrence Lessig’s earlier rebuttal to Glenn Greenwald regarding the Supreme Court’s decision in Citizens United to overthrow centuries of American law and jurisprudence on the rights of corporations and to enshrine corporations – legal fictions created by states and with powers very severely restricted at the time the Constitution was negotiated and ratified by Americans who had recently rebelled against British company-structured colonies and monopolies – as entitled to “speech” under the Bill of Rights on the same basis as men, and made the following observation:

As an aside, other, non-corporation forms of property that had real human bodies – such as slaves – were clearly NOT afforded Constitutional rights of any sort at the time of the Revolution/Bill of Rights; freed slaves as they became citizens and non-citizen Chinese coolies received Constitutional protection ONLY when the Fourteenth Amendment was expressly adopted to extend “privileges and immunities” to citizens and “due process” and “equal protection” to “persons”.

It was this reference to “persons” that smart/prevaricating lawyers for extremely influential railroad corporations were able to persuade a sympathetic Supreme Court – in unargued dicta by a Justice and recorded in headnotes by a Court’s Reporter who were both former railroad lawyers – to the effect that either (i) the 14th Amendment-adopting states had all intended to mean that it would be the federal government, and not the states creating corporations or giving them permission to do business in-state, who would determine whether domestic or out-of-state corporations received “equal” protection of state laws as did citizens or (ii) that such was the hidden purpose of some railroad-friendly drafters of the Amendment, and that such hidden purpose should govern in interpreting the Amendment.

Is there any surprise that most of the subsequent 14th amendment case law is about how monied corporations vigorously pursued and advanced their interests, while blacks and foreign residents continued to get short shrift (“separate but equal”) from unconcerned federal judges?

Now, the thoughtful and highly regarded  Lawrence Lessig has written a must-read article in The Nation; “How to Get Our Democracy Back; If You Want Change, You Have to Change Congress” (February 3; February 22 print edition).

I won’t reprise the essay here — I have a few comments on what I see as serious shortcomings and blind spots in Lessig’s analysis, but the draft of these grows long (like my aside above) – rent-seeking; corporations; religion; limited liability; Constitution, speech, states, federalism – so I will post them separately.

Lessig’s article is a key starting point and long enough, though I will advise/remind the curious reader of my preceding posts on  corporate “free speech”..

In calling for amendments to the Constitution, Lessig joins others that have come to the same conclusion years ago, such as “whacko”, snivelling local communities/enviro-commie fascists (snark!) seeking to control the impacts of large multinational corporations on local communities and resources, and some state-righters seeking to breathe some meaning back into the Tenth Amendment and the moribound body of federalism. More on this later.

Those who want to get further stirred up might want to give another listen to the new music video Anthem of what our Founding Fathers said to King George:  It’s Too Late to Apologize.

#PoliticsInc: More on WHY #CorpSpeak is radical, nonsensical & dangerous judicial activism

February 5th, 2010 No comments

Below is another handy summary of my Constitutional arguments against #CorpSpeak and #politicsInc (Twiter hashtags, for those of you who may be unfamiliar with them), copied from another comment thread at Volokh Conspiracy.

Readers should not forget that it is the state grant of limited liability that – as I have discussed in many posts – lies at the root of our burgeoning fights over government and public distrust (extending even to my quaint pet enviro concerns), Corporations are divorced from their owners, who have been given a grant of limited liability for the risks they shift to society, a cloak of anonymity by which they can behave irresponsibility (with little concerns greater than what provides the largest profits and bonuses) and can seek favors from government, as well as unlimited lives and deep pockets to make persistent efforts to corrupt.

Yes, I may be repeating myself, but core libertarian concerns are at stake. Here are my comments, with a few slight tweaks:

TokyoTom says:

I missed this conversation, while continuing to argue on Jon‘s
initial thread that CU is radical, nonsensical and dangerous judicial
activism: http://volokh.com/2010/01/21/citizens-united/

Let me note a few thoughts:

– the First Amendment was not amended to extend “speech” from humans to nonhumans of any kind;

– as corporations are creatures of the state — with special benefits
extended to shareholders in them that are unavailable otherwise via
contract or common law — the state has every ability to limit the
powers of corporations;

– in the same way, governments routinely condition extensions of
benefits on acceptance of limits on speech; prominent examples include gag rules on churches and other nonprofits, and on
doctors in hospitals that receive federal funding;

– the equation of corporations — which have a legal status distinct
from their owners — with individuals and other forms of voluntary
organizations that retain unlimited liability is invidious, and blurs
the very real distinctions between them. When corporations “speak”, WHO
is talking? (The growth of corporations and the lack of shareholder
liability has led to a continued attenuation of SH control, for the
benefit of managers.)

– if corporations were held to have NO Constitutional speech rights,
the real human beings who work at, manage or own them would retain all
of their Const rights of speech and redress — but at their own direct
expense. All that would be lost would be the ability of some to mask
their identity, to claim that they represent all, and to pay for their
speech by picking the pockets others (a point one wishes Kagan had
better understood and made).

 

Alice in Free Speech Wonderland: "Personal Corporatehood" as response to latest victory of corporations

February 3rd, 2010 No comments

Further to my preceding posts on corporations and free speech, I invite others to read this semi-serious piece in Truthout that examines the implications of the United Citizens vs. FEC decision:

Personal Corporatehood: Coping With the Reason Divided of Citizens United

The author, Randall Amster suggests that in the wake of the latest Supreme Court case, ALL citizens ought to abandon personal responsibility and liability and incorporate themselves. Amster is a J.D., Ph.D., teaches peace studies at Prescott College, and is executive director of the Peace & Justice Studies
Association.

I quote liberally (emphasis added):

There’s great consternation brewing over the recent Supreme Court
decision that cements and extends the misbegotten logic of “corporate
personhood,” and rightly so. Surely, one of the most farcical and
tortuous doctrines ever established in our system of jurisprudence,
this conflated concept has drawn the ire of (small-d) democrats at
least as far back as Thomas Jefferson, who wrote in 1816, “I hope we
shall … crush in its birth the aristocracy of our moneyed
corporations which dare already to challenge our government in a trial
of strength, and bid defiance to the laws of our country.” …

Still, the notion of “corporate personhood” remains
something of a misnomer. In our system, as now expanded by the Supreme
Court, corporations actually enjoy more rights than individuals do in
many ways. To wit: liability shields, rights of transfer, political
access and influence, subsidies, laissez-faire regulation, freedom of
movement, self-determination, self-governance, tax breaks etc. In
particular, when it comes to political speech, corporations are now
essentially unfettered in their freedom, something that we mere mortals
have yet to fully secure.
Consider the language of the court’s recent
ruling: “If the First Amendment has any force, it prohibits Congress
from fining or jailing citizens, or associations of citizens, for
simply engaging in political speech.” …

President Obama called the decision “a major victory
for big oil, Wall Street banks, health insurance companies and the
other powerful interests that marshal their power every day in
Washington to drown out the voices of everyday Americans.” What wasn’t
immediately clear is whether he intended this as a lamentation or a
mere observation of political reality. Either way, he was in essence
stating a working fact, namely that whatever shards of democracy and
the “will of the people” had existed up to now, the pretense is all but
gone and corporations will openly run the show. I suppose this has the
virtue, in any event, of being a more honest representation of how
things actually transpire.
The question is where things will go now
that this critical threshold has been crossed.

Most likely, this ruling is a harbinger of further
extensions of corporate rights and powers. A broad mandate and a
willing court will impel corporations to take on even more of the
qualities ordinarily associated with individuals
, as noted in the
SCOTUS blog’s analysis of the decision: “It is not too much to expect
that lawyers for corporate America may well be looking to explore the
outer possibilities of their clients’ ‘personhood’ and new-found
constitutional equality.”
[link added] There previously had existed a founding
principle that “natural persons” and “artificial persons” were separate
and distinct entities under the law, with the former holding historical
priority in our constitutional framework. By now, that distinction has
been blurred to such an extent as to be effectively meaningless,
as
evidenced by a 2008 Federal District Court ruling in which it was
proclaimed by the judge that “Blackwater is a person….”

If Blackwater is a person, I want out. Indeed, this
suggests a strategy that “natural persons” might take in embracing the
implications of this unrestricted corporate world. If a corporation can
become a person, then by implication a person can become a corporation.
I am thus advocating a new doctrine of “personal corporatehood,” in
which we should all avail ourselves of the enhanced rights granted to
“artificial persons” in our system.
People should begin taking steps to
incorporate themselves immediately. …

Just imagine the benefits. When someone asks you for
a favor, you can off-puttingly reply, “I have to check with my board of
directors at next month’s meeting; someone will get back to you then.”
When you want to meet with your Congressperson on matters you feel
strongly about, the receptionist will announce, “Senator, a corporation
is here to see you,” which will likely get you instant access. If you
go public, you can sell shares in yourself and make a tidy sum (just be
sure to retain a controlling interest). If someone irritates you or has
something you want, you can likely get the Marines sent in to deal with
them. You can avoid having to appear personally at court hearings,
sending your hired-gun attorney instead. And you can’t be thrown in
jail, since a corporation itself cannot be imprisoned. See?

At the end of the day, we “natural persons” can try
and fight city hall on this one, or we can get in the game and embrace
the benefits of artificiality. In a world of surfaces, where
profiteering masks as politics and gerrymandering as justice, this may
well be the best of all strategies for survival.

Amster is pretty much right in his discussion of the now rather superior rights that corporations have over individuals. While we can`t really abandon our individual identities, by incorporating we can shield assets by limiting liability and maybe, even double or triple our vote, if courts follow their logic and acknowledge that voting is simply a form of speech.

Or we could find ways to step back from the Alice in Wonderland nonsense that creeping corporatism and “conservative” Supreme Court justices have led us to.

Free speech 2: Finally, someone else – Larry Lessig – gets it on state-created corporations and speech!

February 3rd, 2010 No comments

Further to my preceding post on speech and corporations, I highly recommend Lawrence Lessig`s insightful short piece, “The Principled and Pure Court? A Reply to Glenn Greenwald” (HuffPo, January 27).

For those who haven`t seen it yet, I take the liberty of quoting liberally (emphasis added):

Salon‘s Glenn Greenwald
is just about the most persistent and effective critic of money in
politics today. He is among the least starry-eyed reporters studying
Congress. But his essay defending the Court’s judgment in Citizens United would have been better had he sprinkled a bit of the skepticism he has for Congress on the words penned by the Court….

The First Amendment, Greenwald tells us, is an absolute. It applies
not to “persons”; it “simply bans Congress from making any laws
abridging freedom of speech.” This law plainly banned these entities —
whether persons or not — from a freedom of speech. Ergo, this law is,
and should have been found to be, unconstitutional.

Sounds good. Sounds principled. Sounds refreshingly different from
anything else that happens within the reach of DC (i.e., good and
principled).

But apply that same test to the following (not so hypothetical) free
speech case: A bunch of doctors practice in family planning clinics.
The government issues a rule that says certain doctors in certain
clinics are not allowed to discuss abortion as a method of family
planning. They can talk about abstinence. Or condoms. But they are not
allowed to advise their pregnant patients that they have the liberty to
abort their fetus.

Sounds like — under the First Amendment Greenwald describes — a
simple case. Whether or not doctors are persons (and at least some are
just mere mortals), they should have the freedom to speak. Advising
someone about a legal medical procedure is among the core freedoms one
would expect a Free Speech Clause to serve.

Yet in 1991, in an opinion by Chief Justice Robert’s former boss, Chief Justice Rehnquist, in the case of Rust v. Sullivan,
the Court found no First Amendment problem at all with the government’s
restriction on doctors’ speech. Indeed, it wasn’t even a difficult case
according to the Court (“no question but that the statutory prohibition
contained in § 1008 is constitutional.”)

Why? How? Well the doctors at issue worked in family planning
clinics that had received at least some of their funds from the
government. And in exchange for that benefit, the government was free
to gag the doctors however it wished.
The doctors were free of course
to work in a family planning clinic not funded at all by the government
(for of course, there are plenty of those) (that’s a joke). But so long
as the doctors take this benefit from the government, they’ve got to
live by the rules of the government, at least so long as those rules
serve some legitimate state end.

So how is this case related to Citizens United? For the law wasn’t
applying exclusively to entities that had received something from the
government. It was applying to all corporations.

But of course, corporations do receive a gift from the government.
The government limits the legal liability of investors in that
corporation in exchange for their risking their capital to spur
innovation and growth. That benefit is significant. And the First
Amendment question is whether in granting that benefit, the state would
be free to limit the political advocacy that corporations engage in.

It seems astonishing to imagine the state couldn’t. State law has
historically had wide freedoms to condition the corporate form as they
wished. This fact has led some, including my colleague, Sina Kian, to
argue that Citizens United is less than people think. That the decision
notwithstanding, states could build this limit into their corporate
charters. Or that maybe even Congress could induce states to do the
same. The question then would be the reason the government had for
demanding the entity give up this liberty in exchange for the corporate
form. Traditionally, the burden of that question is the easiest for the
government to meet — is there any state interest at all?
In Rust, the
interest was that that government didn’t like abortion.

But I agree with Greenwald that there is something unseemly in the
idea that the government could restrict the speech of a class because
it doesn’t like the speech of that class.

Yet this is the most confused part of the commentary (and reaction)
of most to this kind of regulation. If the government’s reason for
silencing corporations is that they don’t like what corporations would
say — if it thinks, for example, that it would be too Republican, or
too pro-business — then that’s got to be a terrible reason for the
regulation, and we all ought to support a decision that strikes a law
so inspired.

That, however, is not the only, or the best, justification behind
the regulations at issue in Citizens United. Those rules not about
suppressing a point of view. They’re about avoiding a kind of
dependency that undermines trust in our government.
The concentrated,
and tacitly, coordinated efforts by large and powerful economic
entities — made large and powerful in part because of the gift of
immunity given by the state — could certainly help lead many to
believe “money is buying results” in Congress. Avoiding that belief —
just like avoiding the belief that money bought results on the Supreme
Court — has got to be an important and valid interest of the state.

If the Court really means to say that entities that fund or create
other entities can’t limit the power of those entities to speak — so
the government can’t stop doctors from talking about abortion, or the
IRS can’t stop non-profits from talking about politics — then we
really have crossed a Bladerunner line. For that conclusion really does
mean that these entities were “created with certain unalienable
rights,” even though they were created by a pretty pathetic creator —
the state.

My point is not that the state’s power to condition should be
unlimited. The point instead is that it’s not so simple, or absolute,
as Greenwald would have it. And given the true complexity of these
evolving and complicated doctrines, it is certainly fair to be critical
in the extreme of this decision by the Court, favoring speech that most
believe it naturally likes (unlike abortion-speak), in a decision that
ignores the judgment of Congress about the conditions under which the
integrity of that body, or any election, proceeds.

It seems to me that Lessig doesn`t go far enough, in questioning as I have all of the negative consequences of the state grant of limited liability to the owners of corporations. Surely any libertarian worth his salt should do so.

But Lessig has understated his own case: the government has a valid interest in seeking to prevent not only the appearance that “money is buying results”, but actual corruption and sweet deals as well. Surely the Constitution was not intended to let wealthy individuals to get a leg up on everyone else by laundering their speech through a company and on a tax-deductible basis.

Further, Lessig fails to noted that the Supreme Court could easily have avoided overturning laws and decades of precedents and public understanding – and could have provided much-needed clarity – by concluding that the statements coming from corporations are NOT entitled to protection as First Amendment “speech”, because corporations are legal entities and not themselves actual individuals capable of “speaking” for purposes of the First Amendment. Such a decision would leave all corporate spokesmen and shareholders bearing, like the rest of us do, personal liability and moral sanction for false or offensive speech (though insurance or indemnification by others might of course be be available).

But via the growth of concentrated power enabled by the state establishment of the corporate form, we appear to be rapidly becoming a nation a county “of the corporation, by the corporation and for the corporation”.

Banning corporate political speech (and campaign contributions) would dampen the rent-seeking pressures that have fuelled to the growth of the state; such steps would also invigorate public discourse – and build greater national trust – by making it clear WHO is actually doing the talking (or letting the body politic discount whenever speech is anonymous).

Supreme Court, others confused about "speech" because they ignore (1) that corporations are not themselves persons, but creatures of the state

February 3rd, 2010 No comments

Further, virtually everyone has been ignoring (2) WHY it is that there is so much concern about corporations and their influence on (and vulnerability to) government: namely, states have allowed individuals (and now other corporations) to form separate, limited-liability legal entities that cut off their owners for any responsibility for the damages that such corporations may do to others.

One of the chief direct consequences of the use of the state to create corporations, as I have discussed in many posts (as the Mises` resident radical enviro), has been massive risk-shifting to the public and cycles of public pressure to use government to rein in corporations. In this, the better organized, longer-lived  and deeper pocketed corporations always having a leg up on gaming the drafting and interpretation of laws and regulations, and using government to steal further from/shift risks to the public at large and to hobble competitors. Thus the indirect consequences of the grant of a limited liability corporate personhood include not simply the financial crisis, but the growing distrust of government, corporations, politicians and voters of a different political stripe and the ramp-up in reasons to fight over the wheel.

I think that the Supreme Court decision in Citizens United v. Federal Election Commission is wrong, chiefly because the First Amendment is about HUMAN speech, while corporations – though associations of humans – have a distinct legal identity and very different characteristics.

The decision is also wrong because the Roberts court fails to acknowledge that just as the state can create corporations, so also can it condition their existence on refraining from political speech (making political contributions, etc.), or regulate their speech via excise taxes or the like (just as the federal government so conditions the grant of income tax-free status to religious groups and non-profits on express restrictions on political speech). But far better to attack the problem at the root of incorporation (or at the Constitutional level) than by a host of federal-level laws and regulations – including those remaining on churches and NPOs.

I have commented on these points in a blog thread at the libertarian/right-leaning legal blog, The Volokh Conspiracy.

TokyoTom says:

Leo Mrvin: I haven’t given this much thought, but is it really inconceivable that if the First Amendment didn’t protect corporations, individuals who wanted to pool resources in mass media vehicles for political speech would do so without the benefit of limited liability?

Dilan EsperYou can make this argument, but it begs the question, because then the issue is simply re-stated as “can the government condition limited liability on individuals giving up their associational speech rights?”. 

In this case the question conflates the states which approve corporate status with the federal government, but why would such a question prove difficult? The federal government provides tax exemptions to religious and other groups on the express condition that they refrain from political speech.

It doesn‘t take much digging to see how profoundly the grant of limited liability to corporate shareholders has snowballed into the massive struggles for favor and regulation that we see today. Confused decisions that corporations (as opposed to those who own and staff them) have Constitutional rights has greatly contributed to this [- even as these decisions constantly acted to shift power from citizens and the states to the federal government] . (Likewise, the federal income tax has also perversely entangled the state in religious organizations and political speech.)

TokyoTom says:

If Congress can Constitutionally limit the speech of people who choose to associate as non-profit churches etc., why cannot it likewise limit the speech who choose to accept the favor of a state grant of limited liability?

 

John Dewey says:

The discussions about whether corporations have the rights of people and about whether the Founding Fathers could have considered corporations — is any of this relevant?

The First Amendment protects a citizen from a powerful government which would decide what speech the citizen would be allowed to read or hear. It’s not a right granted to a speaker, but a right granted to a listener or reader. As such, it makes no difference whether the speech being protected comes from a single person, a non-profit organization, a union. a church, or a corporation. It is not the speaker but rather the speech — and the right of the citizen to hear it — which is being protected.

TokyoTom says:

John, I disagree. The First Amendment is about the peoples‘ rights to gather and to speak privately and publicly, including reporting on government.

Corporations are not people — but legal fictions that are creatures of their owners and the State, which protects their owners by giving them a special grant of limited liability. Corporations may parrot the words of particular people with in the firm, but they [corporations], like parrots, are not people and do not “speak” themselves. (Actually, this is unfair to parrots and other animals, which deliberately attempt to convey meaning to others, and not as a sock puppet for another person/animal/entity.)

While I‘m no fan of corporate income taxes, just as the federal government can condition “non-profit” status on a waiver of political speech rights by churches and other forms of legal entities, so states condition the grant of corporate status on the owners‘ acceptance that they cannot use the corporation as a political mouthpiece (such a use could be made expressly ultra vires), and so should states and the federal government be able to limit or tax political speech by corporations.

Not only would this be good law, but in my view entirely good policy by doing much to slow rent-seeking via large corporations, by removing incentives for wealthy investors to influence public officials and public debate. Let the rich (and others) speak for themselves – anonymously if they choose – but we can and should stop the money-laundering of speech through corporations.

The Roberts court showed it didn‘t have the strength of its convictions by upholding the part of McCain-Feingold that mandates disclosure of who is funding speech — in my view, this is incorrect. Anonymous speech very much SHOULD be allowed – but only for individuals and organizations that have not been granted limited liability by the state.

The chief sticky side issue here is the political gagging of churches and NGOs arising from the desire for favorable tax treatment [on this, the solution lies both in ending limited liability and in ending corporate income taxes].