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The Corporate States of America

money in politicsAmericans have long had a sneaking suspicion that there was a “hidden hand” directing our government in Washington and the states, and they were right. The “hidden hand” was actually the corporations, unions, and other special interests that contribute literally $billions to our politicians in order to influence legislation that will favor them. This has happened even with the limits that have been placed on these groups that prevented them from directly contributing to campaigns.

Thursday January 21 2010, will go down in history as a dark day. This is the day that a divided Supreme Court, in a case of unbelievable overreach removed all limits on corporate political campaign spending. If you thought our politicians were corrupt and beholden to corporations before, things are about to get a LOT WORSE now that all limits have been removed. Justices Roberts, Alito, Scalia, Thomas and Kennedy swept aside decades of legislative restrictions on the money from corporations in political campaigns and ruled that companies can use corporate funds to support or oppose candidates. These 5 justices have just opened the floodgates and the strangle hold the banks have over the nation’s wealth will now be amplified by this Supreme Court ruling that has totally removed all limits on campaign financing by corporations. This black day will go ultimately go down in history where the Supreme Court officially validated the takeover of the government by the corporations. The amounts of money spent on the 2010 midterm elections was a record, and the amounts that will be spent on the 2012 presidential elections are projected to total $BILLIONS!

money = freedom

In its impartial majesty the Supreme Court rules that the poor as well as the rich can spend unlimited money to influence elections


The flawed logic they used was that this was a freedom of speech issue. These 5 justices have just declared corporations now have 1st amendment rights, the same as individuals. It is ironic that it is the conservative wing of the court, the same wing that consistently calls for “judicial restraint” and rails against anything not specifically mentioned in the constitution, was the one that overturned decades of precedent. Where in the constitution did our founding fathers give corporations the right to freedom of speech? Where were corporations even mentioned in the constitution?

We all know too well what happened when our nation deregulated the financial industry and told us that “the market” will regulate itself. These 5 men have now totally deregulated money in politics and have left it to the “market” to regulate itself. We have already seen what deregulation of the financial industry did to our economy. These deregulators said the market could regulate itself.It does not take much forward thinking to envision the consequences of this disastrous decision. The special interest groups were handed a late Christmas present and are already gearing up to flood the political campaigns with money from their profits. The corporations will move quickly to complete their stranglehold on the media and then leverage this to their advantage. Fred Werthheimer, president of Democracy 21, a nonprofit, nonpartisan organization dedicated to making democracy work for all Americans stated: "With a stroke of the pen, five justices wiped out a century of American history devoted to preventing corporate corruption of our democracy"

If the nation does somehow survive this handing of the government to the corporations, this decision will go down in history as even worse than the Dred Scott v. Sandford and Plessy v. Ferguson monumental errors of the past. The 5 justices that recklessly voted for removing all limits to corporate campaign spending: Roberts, Alito, Thomas, Scalia, Kennedy will rightly be held in the same regard as those who voted for these other two decisions.

In the 2008 election cycle, nearly $6 billion was spent on all federal campaigns, including more than $1 billion from corporate political action committees, trade associations, executives and lobbyists. This $6 billion figure does not include state and local races. Now consider how much money we will be talking about here, now that the labor unions and corporations can spend unlimited amounts in both Federal and State elections. We will now have wholesale buying of elections by corporations with their vast financial resources. The door has also been opened for foreign corporations to have a say in our elections now. You can now also expect these corporations to move quickly to attempt to finalize their control of the media and use the media along with their money to “inform” the citizenry of the issues. While the electorate was distracted by the staged left vs right, Democrat vs Republican, conservative vs liberal fights, we have actually just had a coup take place where the corporations have taken over the country. This ruling does not really favor any party because in the end it will not matter what party the candidate is from, they will have been bought. Have you noticed that the corporate media did not give this huge event much coverage?

Corruption of our electoral process
Monica Youn, who directs the campaign finance reform/money in politics project at New York University’s Brennan Center for Law and Justice, said that with this decision the Supreme Court has essentially armed the corporations with a potent weapon, these corporations may not even have to spend that much money. What could easily happen is that the corporations will now have the THREAT of a massive media campaign against politicans that may not do their bidding. This mere potential of a massive campaign of negative ads will probably be enough to make the majority of politicans reconsider their positions. This is like having a negotiation between 2 parties in a room where one of the parties has a weapon and the other does not. The party with the weapon does not need to actually need to wield it to get the desired results, just knowing that it is there is enough. So much for politicians doing the right thing. The corporations will now have even more clout in the legislatures than before and this is without even spending any additional money.

With the broad language that the Supreme Court opinion was written, it may well be almost impossible to draft new legislation to overcome this ruling. Of course, do you really believe that our politicians will even be willing to do pass effective reform legislation now that this new ruling is in place and it favors incumbents even more strongly than before? Our politicians are like drug addicts that are totally dependent on these large sums of special interest money to maintain themselves in power. They will do almost anything to maintain their power.

As if this Supreme Court decision was not bad enough, the nation suffers from a lack of transparency when it comes to trying to follow the money. Deliberate attempts are made to hide and obfuscate the information so that the electorate remains uninformed.

  • Did you know that the Senate deliberately exempted itself from filing campaign finance reports electronically? This slows down the process of determining who is actually making contributions and expenditures by making research a very arduous process of having to read thousands of pages by hand, or having to retype them into a form that can be indexed and readily searched.
  • Did you know that the government’s new “open government” site http://www.data.gov, doesn’t even contain data on campaign contributions, lobbyist filings, statistics on warrantless searches or even committee assignments?
  • Did you know that here is no indexing of the thousands of hours of House and Senate recordings? You would have to listen for days before you could find what you are searching for.
  • Years after the problems with electronic ballots not having a voter verifiable paper audit trail were made public, we still allow these machines to count votes without verifiable paper trails despite the fact that it has been proven that they are easily manipulated. Regardless of your political beliefs, it is crucial for our democracy that the integrity of election results be considered fair and impartial.

It may well be that we have now lost our democracy, but there may still be some hope. Since we can no longer place limits on corporate campaign funding, we need to do the following:

  1. We need to demand TOTAL TRANSPARENCY. We need legislation passed immediately before the next election cycle goes into full swing, where all campaign funding is placed on the Internet and this data must be completely indexed. It is vital that these databases be directly searchable by each and every sort of variable contained in the original documentation. This will make it easy to cross reference the information and find out exactly who is receiving what and from whom. By creating this standard the American people will be able to make informed decisions about the candidates running for office and whose interests these politicans are really representing.
  2. We need passage of the “Fair Election Now Act” immediately. This legislation has been cosponsored by 120 members in the House, however its companion bill in the Senate has a pitiful 5 cosponsors. It has also been supported by many business leaders who sent a letter to the House Speaker and to the Senate Majority Leader. They understand the need for this reform and are getting tired of politicians constantly calling them for money. This bill would create a voluntary system of public funding of campaigns by supplementing small donations of $100 or less. During an election cycle the voters would be able to determine if a candidate was going to serve the people by using the public system or serve the special interests by not participating in it. Check here to see if your congressional representative is a cosponsor. Check here to see if your Senator is a cosponsor. If they are not, call them and ask them why not.
  3. It is time to pass legislating that any corporate money used for political spending be approved by a majority of the shareholders. This will give the shareholders the ability to control corporate political expenditures. (While we are at it, let’s include language in the legislation about shareholder approval of all compensation and bonus payments as well.)

While passage of the above legislation would not stop all of the corruption of money in politics, it would go a long way to limiting its influence and making it apparent to the voters who is trying to influence their candidates. To make the passage of these legislative bills more likely, it is now incumbent on us to actively support organizations that have been fighting for campaign finance reform and government transparency. The time to mobilize is now, while the issue is hot. If we wait too long, the entrenched interests will put additional barriers in place making harder and harder to enact meaningful reforms. There are many organizations working for political finance reform and government transparency, some of these organizations would include:
Common Cause
Public Citizen
Democracy 21
Follow the Money
Open Secrets
Fair Elections Now

These organizations now need your efforts and financial support more than ever. Plato, an ancient Greek philosopher once said, “the price of apathy towards public affairs is to be ruled by evil men." If we do not lift ourselves up from our collective apathy, Plato’s words will most certainly become a reality.

Private Corporate Court System

There is a country where Big Business can completely bypass the court system and have cases brought by employees, customers, and individuals heard by a private court system that is overwhelmingly funded by the corporations themselves. In this country they can even totally prevent the bringing of any class action suits for any damage, fraud, or other illegal practice they may engaged in. These suits can only be brought individually and must be heard by this private court system. So what country is this in? Iran, North Korea, Afghanistan, Zimbabwe, Myanmar? No, this country is the United States!

Our “independent” Supreme Court has AGAIN sided with the huge corporations and just delivered the working people of the United States another body blow. In this new ruling, AT&T v. Concepcion, the Supreme Court has overturned lower federal Court decisions and given Big Business the ability to deprive you of your most potent weapon to fight back if you have been cheated or harmed by a corporation. In this ruling you will now no longer be able to use class action suits for redress against a corporation. This new ruling comes on top of the Citizens United v. FEC case where the Supreme Court declared that corporations have the same rights as individuals and were entitled to free speech where they were free to spend unlimited amounts of money to influence elections. In fairness to the impartiality of the Supreme Court, the poor as well as the rich both have the right to spend unlimited amounts of money for political purposes.

Consider this: If your phone company illegally charges you $10 on your bill and also does this to another million customers, the Supreme Court’s ruling allows companies to force consumers or employees into arbitration agreements that prevent them (you) from joining with the others to hold the company accountable. Big Business with its myopic focus on profits often cross the line into fraud, discrimination, and other illegal practices.

How many people have the money and time to take on the task if suing a corporation for $10 or even $1000? The only way this was possible was through the use of class action suits where the customers would join together and take on the wrongs of the corporations. This ruling will now make it nearly impossible to fight against Big Business’ malevolent behavior, and leaves consumers powerless to stop them if they do. This Supreme Court decision, basically allows the major corporations to ignore the law and because of the Citizens United case, to create corporate-made law for the rest of us as they use their economic might to hire the politicians to write laws that favor them.

The use of arbitration agreements on the surface sounds like a reasonable solution because no one wants to go through the turmoil of a lawsuit, and it does streamline any grievance process. However, in reality this amounts to a private corporate controlled court system. The largest arbitration firms are heavily biased in favor of Big Business and against consumers. Since an arbitration company must keep future possible cases in mind, it is in its interests to rule for Big Business and against consumers, and this fact is a blatant violation of any stated impartiality that they may profess.

The Citizens United v. FEC and the AT&T v. Concepcion cases, our Supreme Court has tilted the playing field heavily in favor of the corporations and against working people. The impliciations of such a radical tilt will certainly be felt as time goes by. Think of this, if AT&T decided to “make a mistake” of $10 on 1 million customers bills, it would make $10 million because of this mistake with probably only a small handful of people challenging it, and they would have to challenge it in the private corporate arbitration courts. What do you think are the odds that practices such as this will become common in the future as the nation marches closer and closer to a corporatocracy?

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