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A Dialogue on the Rights of Corporations

09/28/09

Here below is a recent conversation I had with a more conservative peer of mine. We were debating the rights of corporations in the context of a recent New York Times article, and how we feel about the expansion of those rights.

PEER:

Limited, sure. But in barring a corporation from expressing speech in a federal election? Nonsense.

Most winners/losers in elections are corporations; either in greater government subsidies or greater taxation and regulation. I think when a corporation is directly threatened by a politician it should have the right, as an organization of people, to express itself through paid advertising for, or against, any candidate it chooses. 

Free speech, as the old axiom goes, isn't about protecting popular speech (it doesn't need protecting) but about protecting that which people find objectionable. Similarly, corporations are inherently unpopular in politics. Their voices should be allowed to be heard.

ROSS:

Well said. However, being that corporations are institutions set up with specific purposes, namely to derive a profit, and to realize those purposes in a system with limited resources and a constantly constrained opportunity for influence, some measure of disenfranchisement has to happen, consequently lines and norms have to be institutionalized to exact a fair play system.

Follow up:

That being understood, the framework of our country depends on the delineated interests of our voters. The formation of massive voting bloc mentality via the two party system and advocacy groups certainly do their best to drive those interests, often, as Jean Jacques Rousseau might point out, to the detriment of our democracy. Although, they do a serve their purpose: Chiefly to engage the citizenry and make progress on any number of issues that members might feel need to be addressed by organization of popular support. However, an important point to note here is that in no means do any members of these groups have any obligations at any time to vote in certain fashions, beyond the ideological ones they presumably joined for in the first place, and what seems like popular support can dissolve very easily, especially with new information.

That being said, I think one should consider corporations, in effect, like giant economic advocacy firms, vying for influence in ways that will advance its directives, which, if they played by the same rules as other advocacy groups would be entirely fine. Unfortunately, when utilizing conglomerate resources to voice an opinion that is only for the benefit of itself against others (like all voices spoken in politics), it can often be much louder and more influential than any normal citizen or group of citizens could be. That is why it is very significant to put blocks on its "megaphone" capacities and reign in its abilities: so that other’s interests (the American public) can still be heard, and effectively implemented.

That being understood, harking the conservative credo of strict constitutionalism it is important to realize that all advances in the rights of corporations have come after the adoption of our founding documents. On top of that, I think that if corporate directives were also what was best for the people and demographics it affects, it should focus its resources on legally garnering support among those who have the right to influence: citizens.

Now I'd like your input. Please elaborate a point, critique or dissent away!

2 comments

Comment from: Lance Legel [Member] Email
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"That is why it is very significant to put blocks on its "megaphone" capacities and reign in its abilities: so that other’s interests (the American public) can still be heard, and effectively implemented."

I disagree. Your suggestion effectively revokes the First Amendment of our Constitution: "Congress shall make no law... abridging the freedom of speech, or the press..." Imagine what could happen if an extremist group receives the authority to "put blocks" on "megaphones"?

"I think that if corporate directives were also what was best for the people and demographics it affects, it should focus its resources on legally garnering support among those who have the right to influence: citizens."

If direct corporate lobbying to Congress was made illegal, for example, then our systems would be more transparent. But our economy would be slower, while structurally identical. Furthermore, this would be impossible to implement given the depth of industrial forces.

I think we must be very careful when using government mandates for socioeconomic development. Because regardless of the nobility and plausibility of legislative initiatives, humans are not super-computers.

It is often most-efficient to let nature take its course: let free-market supply and demand naturally serve societal interests and abilities.
10/03/09 @ 17:18
Comment from: Ross Mittiga [Member] Email
To respond point by point-

You cited the first amendment here which directly underlines the issue I was referring to- corporations should not be able to claim any constitutionally derived rights as they are not people. These abstract institutions have no physical voice, and therefore the only thing that would possibly remain to be curbed would be their inability to directly express sentiments connected to their economic interests. I would like to cite Federalist Paper No.10 in the light of corporations acting as interest-based factions, "By a faction, I understand a number of citizens, whether amounting to a majority or a minority of the whole, who are united and actuated by some common impulse of passion, or of interest, adversed to the rights of other citizens, or to the permanent and aggregate interests of the community." Giving corporations free and uncontested access to the political sphere, which is already heavily influenced in the favor of these giants, could only work to the detriment of the typical citizen.

To address the next point- the case is not focused around if corporate lobbying would be made illegal. Also, I think your subsequent claims about the economy being "slower" and the notion that it "... would be impossible to implement [regulations on lobbying] given the depth of industrial forces" can in no way be substantiated. Intuitively, I think the antithesis of that argument could just as easily be made.

Finally, to address your last point, "It is often most-efficient to let nature take its course: let free-market supply and demand naturally serve societal interests and abilities." I would say that it is incorrect to assume A) that a ruling against the corporations in this case would be limiting the free-market, because in actuality a positive ruling for corporations would probably more likely provide to that end, and B)that free-markets, in any sustainable way, serve societal interests.

That said, I leave you with a video featuring the very brilliant political theorist, Noam Chomsky, discussing shortly this issue.
10/14/09 @ 12:18

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