January 2010

  • January 21, 2010
    BookTalk
    Goddess of the Market
    Ayn Rand and the American Right
    By: 
    Jennifer Burns

    By Jennifer Burns, Assistant Professor of History, University of Virginia. Burns blogs about Ayn Rand, libertarianism, political history, and more at www.jenniferburns.org

    Of all the second acts in American lives, perhaps none is more remarkable than the recent conservative embrace of Ayn Rand, the long-dead doyenne of American capitalism. During the market nosedive of 2008 it seemed her version of free market capitalism had been discredited altogether; even former acolyte Alan Greenspan had his doubts, famously telling Congress he had found "a flaw" in his Rand-inspired ideology. Yet in 2009 sales of her books began a ferocious climb, with Atlas Shrugged alone selling more than 300,000 copies. Signs referencing her hero John Galt dotted the tea party protests, and she's been a staple of right wing talk radio and a new favorite of rising stars like Glen Beck. On the campaign trail, candidate Obama would sometimes criticize the virtue of selfishness, making a veiled allusion to Rand's ideas. Now President Obama has wrestled firsthand with the virtue of selfishness, for it is Rand's ideas that have undergirded conservative response to his economic proposals from the auto bailout to health care reform. Nor is she likely to fade away anytime soon; the Washington Post just declared Randroids "in" for 2010.

  • January 21, 2010
    Guest Post

    By Bert Brandenburg, Executive Director of Justice at Stake, a nonpartisan, nonprofit campaign with more than 50 partners, working to keep America's courts fair, impartial and free from special-interest and partisan attacks.

    For those concerned about special-interest spending in elections, today's Citizens United ruling was an unmistakable setback. This ruling pours gasoline on an already raging bonfire that will affect all federal and state elections. And it will pose an especially grave threat to the integrity of elected state courts.

    But today's Citizens United ruling does have a silver lining: it explicitly says that corporations that pay to play in elections can be forced to disclose their financial sources. Companies running so-called independent campaigns can literally spend infinite amounts. But they do not have a constitutional right to do so anonymously.

    The ruling thus gives clear guidance to state and federal lawmakers that they can pass disclosure laws, to provide desperately needed sunlight in a new era of runaway election spending. Moreover, it is a hopeful sign that First Amendment attacks, which have been used as a battering ram against legitimate election laws, may have reached their upper limit with the Citizens United case.

    In today's ruling, the U.S. Supreme Court said businesses can spend directly from their treasuries on federal elections-a ruling that could unleash a tsunami of campaign cash. And that's clearly just the beginning. As quickly as they can be cranked out, new lawsuits will demand equal rights for unions-and for spending on state and local elections, not just federal campaigns.

    It's easy to imagine where this will lead, especially for those who focus on the specialized area of judicial elections.

  • January 21, 2010
    Guest Post

    By Jeffrey D. Clements. Mr. Clements is former Chief of the Public Protection and Advocacy Bureau in the Massachusetts Attorney General's Office, and now focuses on litigation and appeals with Clements Law Office, LLC. Mr. Clements is also author of the ACS Issue Brief, Beyond Citizens United v. FEC: Re-Examining Corporate Rights.

    Today in a 5-4 decision in Citizens United v. FEC, the Supreme Court held that the American people are powerless to stop corporations from using corporate funds to influence state and federal elections. Overruling McConnell v. FEC, decided only six years ago and Austin v. Michigan Chamber of Commerce, the Court held that the restrictions on corporate expenditures in elections contained in the federal Bipartisan Campaign Reform Act violated First Amendment protections of free speech. In effect, the majority decision (Justice Anthony Kennedy, joined by Chief Justice John Roberts and Justices Antonin Scalia, Clarence Thomas and Samuel Alito) equates corporations with people for purposes of free speech and campaign expenditures.

    This is an extraordinary ruling unhinged from traditional American understandings of both the First Amendment and corporations. Indeed, Justice John Paul Stevens' dissent calls the majority opinion a "radical departure from what has been settled First Amendment law."

    In Austin and McConnell, the Supreme Court had ruled that Congress and the States may regulate corporate political expenditures not because of the type of speech or political goals sought by the corporation but because of the very nature of the corporate entity itself. Today, Citizens United sweeps those decisions aside, resting partly on Justice Kennedy's assertion that "Corporations and other associations, like individuals, contribute to the ‘discussion, debate, and the dissemination of information and ideas' that the First Amendment seeks to foster." It is an assertion that Justice Stevens, in his dissent, blasts as a "glittering generality."

    The notion that corporations are equivalent to "other associations" is a fundamental error that would get a law student in trouble. Corporations simply do not exist unless we enact laws that enable people to organize a corporation and provide the rules of the road for using a corporation. We all can start and run businesses without government involvement or permission; we can form non-profits and associations and unions and political parties and all kinds of groups without the government. But we simply cannot form or operate a corporation unless the state enacts a law providing authority to form a corporation, and providing the rules of the road that go with use of the corporate form. Advantages of corporations are a privilege provided by government.

    Yet corporations and too many judges confuse these privileges and policies with constitutional rights. And the result, even before Citizens United, has been increasingly damaging to democracy.

  • January 21, 2010
    Guest Post

    By Daniel JH Greenwood, Professor of Law, Hofstra University School of Law. Greenwood co-authored an amicus brief in the case for American Independent Business Alliance (downloadable here). This post reflects only his own views.

    Today, the Supreme Court announced that corporate campaign spending is protected by the First Amendment. That is, the Federal government and states may not restrict corporations' use of corporate money -- money that corporations got by charging customers more than they had to or paying employees, suppliers, and investors less than they could have -- to influence elections. Obviously, business corporations will be forced by the pressures of competition to use their funds to try to use politics as a new forum for competition. Producing a better product is far less likely to be profitable than winning legislative changes in the rules of the game that advantage companies that are already profitable and hinder potential threats to those profits, whether in the form of competing products or health, safety, anti-pollution or other efforts to support the common good.

    The decision turns the First Amendment on its head. The First Amendment has two main purposes: first, to protect republican and democratic politics by ensuring that citizens are free to criticize the government, and second , to create a space free from government intervention where people can follow their own idiosyncratic whims regardless of the taste of others. This decision is a major set-back to both purposes.

    Most importantly, if corporations -- which are not citizens and many of which are multi-national organizations with interests that may be radically opposed to those of ordinary Americans -- are allowed to freely intervene in our elections, then each citizen must have a corresponding decrease in influence. My contribution means less if I must compete with BP-Amoco and not just my fellow Americans' money.

    Moreover, at least for the managers who will now view themselves as required by law and market competition to spend corporate money to influence elections, the Supreme Court's radical revision of the Constitution forces them to use the corporations they run to advocate policies they may well know are wrong for the country.

  • January 21, 2010
    The U.S. Supreme Court dealt a sharp blow today to campaign finance laws when it ruled in Citizens United v. Federal Election Commissions that corporations may funnel money into electing politicians.

    The Associated Press reports that by a 5-4 ruling, the Supreme Court "overturned a 20-year-old ruling that said corporations can be prohibited from using money from their general treasuries to pay for their own campaign ads." The Citizens United decision, the AP reports, leaves untouched "the prohibition on direct contributions to candidates from corporations and unions."

    Justice Anthony Kennedy wrote the majority opinion, which was joined by Chief Justice John Roberts, Justices Antonin Scalia, Clarence Thomas and Samuel Alito. "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," Kennedy wrote.

    Joined by Justices Ruth Bader Ginsburg, Stephen Breyer and Sonia Sotomayor, Justice John Paul Stevens authored the dissent, writing, "The court's ruling threatens to undermine the integrity of elected institutions around the nation." 

    For ACS resources on Citizens United v. FEC, see here. Also check out a debate over the constitutional rights of corporations between David Gans of the Constitutional Accountability Center (CAC) and Michael Greve of the American Enterprise Institute for Public Policy Research (AEI) here.

    Democracy 21 President Fred Wertheimer has initial reaction to the decision for ACSblog here. More guest posts on the decision are forthcoming.