There
never was a great cry from the American people for what
we now call free trade in a “global economy.”
The
only persistent call came from Corporate America, from commodity
traders, from banks, from investment houses, from manufacturers
(the shrinking base that existed), from everyone who had
a stake in the exploitation of natural resources or the
production of low-wage workers in other countries.
It
was the most powerful economic entities in the nation that
called for “free trade” and, over the years, they convinced
enough of the people that free trade was a good thing and
that, if a worldwide system of free trade were accomplished,
all would benefit.
It
was the powerful corporations that called for opening up
the world to trade on their terms, and those terms included
the demands that factories in the developing world (where
most of them eventually went for their goods) produce at
the lowest possible cost, which meant that workers in those
countries would be paid slave wages. And, in the case of
the U.S., the government was manipulated to look the other
way, when threats were made to government leaders or bribes
were paid to keep production costs at rock bottom.
Corporate
America developed such power that it influenced Congress
to embrace the “free trade” agreements all around the world.
The U.S. government, in fact, provided subsidies for companies
that moved their operations overseas, so there was further
incentive to empty the country of its manufacturing and
industrial base, along with millions of the best-paying
jobs available.
How
did corporations get to be so powerful that they outstripped
the power of the people in what was once a democratic republic?
The frauds included more than just free trade, such as the
continued attack on workers’ rights to a union, the continuing
lowering of wages, the evaporation of benefits and pensions,
and unpaid-for wars, to name a few…many catastrophes that
have been visited upon American workers. How did they achieve
such preeminence that they could perpetrate such massive
thefts and frauds?
We
were reminded recently how corporations came to rule America
as we reflected on the recent death of Richard Grossman,
co-founder of the Program on Corporations Law and Democracy
(POCLAD), at the age of 68. Grossman was a man who was
long engaged in the struggle to free the people from the
overpowering influence of corporations.
POCLAD
is a small group of about a dozen men and women who for
two decades slowly and steadily began to make Americans
aware of the influence of Corporate America on their lives.
He and the others taught the history of undue corporate
influence, stretching back to the beginning of the republic.
It
was not last year’s U.S. Supreme Court decision in the Citizens
United case alone that gave corporations the rights
of citizenship, but precedent had been set in a progression
of decisions and other official actions, but they were given
a great boost in 1886, when the Supreme Court ruled in the
case of Santa Clara County v. Southern Pacific Railroad,
that corporations were natural persons under the law.
According
to a pamphlet co-written by Grossman and Frank T. Adams
titled, “Taking Care of Business,” Supreme Court Justice
William O. Douglas 60 years later wrote of the case, “There
was no history, logic or reason given to support that view.”
Even
though Santa Clara was a fraudulent ruling, from
that time on, corporations were seen as having many of the
rights of a citizen, such as access to rights under the
Bill of Rights. In that era, while giving corporations
citizen rights, some judges went so far as to rule that
trade unions were civil and criminal conspiracies. American
workers found it difficult enough to organize to protect
themselves and their families, but this attitude about unions
prevailed in legislative halls and the judiciary well into
the 20th Century and made organizing even more
difficult.
This
kind of corporate power was something that the founding
fathers feared might happen, if corporations were not held
under tight control, so they made sure that the issuance
of a charter of incorporation was among the most serious
undertakings and they gave the control of those charters
to the various state legislatures, which were thought to
be closer to the people.
The
founders were fearful of the untrammeled power of the budding
corporations (they had experienced the great trading companies
of the imperial powers) to the extent that Thomas Jefferson
early in the country’s history wrote in a letter, “I hope
we shall crush in its birth the aristocracy of our moneyed
corporations, which dare already to challenge our government
to a trial of strength and bid defiance to the laws of our
country.” They gave state legislators the power to issue
corporate charters and the power to regulate corporations,
to detail what they were allowed to do and what they were
prohibited from doing, and the power to revoke the charter
and distribute the assets among the shareholders.
Finally
though, last year, the U.S. Supreme Court gave corporations
what they had been seeking for generations, when the justices
ruled that corporations were, indeed, citizens and that
their money was speech, under the First Amendment. The
power of corporate money finally overcame the regulatory
structures set up by the founders and made America’s headlong
plunge toward oligarchy possible.
Richard
Grossman sounded the alarm through POCLAD, which set up
“conversations” about corporations and democracy around
the country in the 1990s…their way of educating participants,
believing that small numbers of people could move others,
to bring the realization to Americans, in general, that
corporations are now in charge. At the beginning of the
republic, Grossman noted, laws and structures were set up
to benefit a propertied class, but now, the control has
passed to a corporate class, which many call Corporate America.
POCLAD
calls for the elimination of “corporate personhood,” which
means that the corporation needs to be recognized for what
it is, a “legal fiction,” and that no corporation has the
rights of a citizen under the U.S. Constitution or the Bill
of Rights. Among other things, the “Occupy” movement addresses
this wrong and there are other efforts under way (such as
movetoamend.org) to overturn
Citizens United legislatively and constitutionally,
to do exactly what Grossman and POCLAD have been working
toward for a couple of decades.
In
noting his passing, the Community Environmental Legal Defense
Fund, for which he worked for a time, said, “While he didn’t
believe that many organizations correctly framed the problem
that we face - and hence, the solution to that problem -
strains of his thinking and strategy continue in the organizations
which worked with him. Echoes of it can also be found in
the Occupy movement, in addition to other groups. But messaging
and bumper stickers were not his work. Rather, it
was his unfailing, uncompromising commitment to uncolonizing
our brains (as the first step to figuring our way out of
this mess) which will remain his legacy.”
The
influence of endless amounts of corporate money has corrupted
the political system, the regulatory system (for food, water,
air, the environment, and jobs, in general), the education
system, and the means by which the people should be informed,
such as television, newspapers, mass-marketed magazines,
and radio. That’s what Richard Grossman was trying to say.
It was not just “free trade” that has been the fraud
of the corporatist era, but it just may be the lynchpin
of corporate control of all of our societal systems.
So
pervasive has been the influence of Corporate America that
average citizens years ago took to spouting their line for
years without thought, and politicians have taken up their
cry as if it were their own. For example, Citizens for
Tax Justice (CTJ) recently noted an example of a politician
mouthing their creed without thought: “In October, South
Carolina Governor Nikki Haley suggested that gradually repealing
the state’s corporate income tax should be a priority for
lawmakers in 2012. Haley’s idea was alarming, but hardly
surprising: in the past year, governors in Arizona and Florida
have proposed similar plans, and lawmakers in a number of
other states have moved to enact expensive new corporate
tax breaks or reduce the corporate tax rate. Noticeably
absent from the policy debates in these states, however,
has been any discussion of whether businesses in each of
these states are currently paying the corporate income tax
to begin with.”
Such
is the state of our politics, when no thought is given to
reality. CTJ, in a recent report, noted that scores of
corporations paid no state income taxes in one or two of
the years 2008-2010. That reality never dawns on the ideologues
who perpetually defend the small minority against the 99
percent (the people). It’s why, to a great degree, only
about half of the electorate votes in any given election.
They feel that their participation, even just to cast a
vote once in a while, does not make any difference. What
that small number of corporations failed to pay to states
amounted to some $47 billion. That amount would make a
considerable dent in the “holes” in various state budgets.
Yet, Corporate America and their politicians are asking
for more “tax relief” and their minions in Congress and
the state houses are jumping to comply.
The
latest manifestation against the rule of the few is the
“Occupy” movement. A long line of individuals and organizations
have preceded them, starting with the union movement, the
civil rights movements, the anti-poverty organizations,
community groups, and many more. Most of them have functioned
with little money, so it always is a constant struggle to
counterbalance the power and wealth of Corporate America.
The
struggle against the plutocrats has been a long one in America,
but the sleeping giant is beginning to awaken. Even if
the 1 percent hasn’t noticed, the 99 percent is, indeed,
the majority and they will express their will in an intelligent
way very soon. That’s why the Occupy movement will not
be going away soon, even if the encampments are attacked
and destroyed by mayors and their police. As most of us
have always known, there are more of us than there are of
them and justice will prevail.
Click
here
to read any of the commentaries in this series
BlackCommentator.com
Columnist, John Funiciello, is a labor organizer and former
union organizer. His union work started when he became a
local president of The Newspaper Guild in the early 1970s.
He was a reporter for 14 years for newspapers in New York
State. In addition to labor work, he is organizing family
farmers as they struggle to stay on the land under enormous
pressure from factory food producers and land developers.
Click here
to contact Mr. Funiciello.
|