Mitt Romney’s remark made at the Iowa State Fair in Des Moines in 2011, that ‟Corporations are people, my friend,” was then, and remains even now, painfully accurate.
His explanation, however was an abysmal failure, and came nowhere close to explaining why ‟Corporations are people, my friend.”
Essentially, ‟Corporations are people, my friend,〞because their articles of incorporation state something to the effect that they can “… to wit, to do any thing a natural person could do…” That is known as “artificial personhood.”
Cornell University writes the following about artificial personhood, which may sometimes also be referred to as legal personhood, though the two are not always interchangeable — a Natural Person is also always Legal Person, but a Legal Person is not always a Natural Person — which is why there is a differentiation made with Natural Person, and the term “Artificial Person” is much more simple, and descriptive:
“An artificial person is also known as a juridical person; it has a legal name and has certain rights, protections, privileges, responsibilities, and liabilities in law, similar to those of a natural person. In other words, an artificial person is a non-human legal entity that is not a single natural person but an organization recognized by law as a fictitious person. In the United States, an artificial person usually refers to “any entities established under the law of the United States, any foreign country, or a state, province, territory, possession, commonwealth, or dependency of the United States or any foreign country, and as to which the government, state, province, territory, possession, commonwealth or dependency must maintain a record showing the entity to have been established.” Specifically, in a business sense, an artificial person is any form of business association and any other non-governmental legal organization, including a profitable or non-profitable corporation, partnership, limited liability company, association, trust, or unincorporated organization.”
The United States Supreme Court has reinforced that sense of personhood by and through their decision in Citizens United v. Federal Election Commission which was issued January 2010, which supported the notion of artificial personhood, and granted additional rights to corporations, but few, if any, of the responsibilities.
Some rightfully call it the “money is free speech” ruling, and the primary problem with such a belief, ruling, or ideology, is that, if it is true that money is free speech (it is not), then the poor man has none, and the Constitution was written for all, equally, and so, in that sense, at the very least, the ruling violates the Equal Protection Clause, and the First Amendment.
The essence of the case is summarized as;
Holding: Political spending is a form of protected speech under the First Amendment, and the government may not keep corporations or unions from spending money to support or denounce individual candidates in elections. While corporations or unions may not give money directly to campaigns, they may seek to persuade the voting public through other means, including ads, especially where these ads were not broadcast.
Judgment: Reversed, 5-4, in an opinion by Justice Anthony Kennedy on January 21, 2010. in a 5-4 decision with an opinion written by Justice Kennedy. Justice Stevens dissented, joined by Justices Ginsburg, Breyer, and Sotomayor.
There are other cases, of course, and this one didn’t just suddenly appear out of nowhere. There were other precedents which prepared the way for it, among which were:
- Buckley v. Valeo (aka The Court’s First Big Mistake) (1976)
- First National Bank of Boston v. Bellotti (aka The Citizens United of the 1970s) (1978)
- Federal Election Commission v. Massachusetts Citizens for Life (aka The Nonprofit Case) (1986)
- Austin v. Michigan Chamber of Commerce (aka The Good One) (1990)
- Citizens United v. FEC (aka The Worst Decision Since Dred Scott) (2010)
- Arizona Free Enterprise Club v. Bennett (aka The Public Financing Case) (2011)
- McCutcheon v. Federal Election Commission (aka The Nightmare Continues) (2014)
But, to be absolutely certain, the problem can be traced back even further, to the Civil War era, when before that time, corporations were held to account by focusing upon the Chief Executive who was responsible, and accountable for all aspects of operations, and any failures fell squarely on their shoulders alone. Power and responsibility were natural complements of each other. After changes in laws were made, power and responsibility were separated, and power was concentrated at the top, but responsibility was diffused throughout the organization, so that no one person could be held to account — all the power, and all the perks that came along for the ride, but all the responsibilities were left at the train station.
That all came to a metaphorical head with the collapse of Enron, a once-high-flying Ponzi scheme bankruptcy of an energy company based in Houston, Texas which was founded and headed by the now-late Ken Lay (1942-2005). That firm’s collapse and subsequent bankruptcy was one of the largest instances of corporate fraud then to have occurred in America, and illustrated how the divorcement of power from responsibility was a formula for disaster. Healthsouth, another firm caught up in such a scheme, in which “cooking the books,” i.e., purposely, deceptively, and fraudulently making falsified entries in the firm’s accounting, most often for the purpose of driving up (artificially inflating) the company’s stock prices, which in turn benefited the executives, primarily, but others who may, or may not, have been somewhat privy to the acts… which, at that time, were not in and of themselves illegal, per se, though they were most certainly frowned upon by reputable accounting firms, Wall Street, and others.
Congress put a screeching halt to such abuses by writing legislation requiring the CEO to personally sign for the authenticity and accuracy of all corporate accounting and reports. And that was just a scratch up upon the surface of corporate greed and corruption, which remains prevalent today, more so now in the form of avarice (greed gone wild), than anything else.
Corporate avarice is also the single greatest problem in our nation’s economy, with one very minor example being the difference between the CEO’s pay, and their average employee’s pay — who, on average, made over 350 times the average employee’s pay. In 1989, the average differential was 61 to 1.
In fact, research performed by the Economic Policy Institute found that from 1978 to 2020, increases in CEO compensation far outstripped growth of either the Standard & Poor’s stock market index – 817%, exceeded by 6 times the increases in top income earners’ gains, and grew, on average, 1322%.
Meanwhile, in that same period, the typical employee’s annual compensation only grew a paltry 18%.
When it comes to Wall Street and BIG BUSINESS, it’s more for them, less for you.
‟Corporations are people, my friend.〞
by Mark LeVine, Director of the Program in Global Middle East Studies at UC Irvine
12 August 2011
Mitt Romney’s friendliness to corporations excuses them from bearing the responsibilities endowed upon them by the rights they are given as ‘persons’ under US law [AFP]
Thank God for Mitt Romney.
In a moment of candour he likely thought would win him much needed support from the Tea Party wing of the Republican Party, the presidential candidate explained his thinking to a heckler – who asked why Read the rest of this entry »
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