When Is a Corporation Like a Freed Slave?

thoughtone

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So much for yout centerist argument.


We didn’t get our forty acres and a mule, but businesses did.

source: Mother Jones



In rural Pennsylvania, township supervisors battling sewage sludge and hog manure stumble up against one of the biggest mysteries in constitutional law.

By Barry Yeoman

LICKING TOWNSHIP, PENNSYLVANIA, is a rolling swath of soybean fields and pastures in Clarion County, two hours northeast of Pittsburgh, with 500 residents and quite a few more cattle. Drive past the township hall, a converted one-room schoolhouse, and you might see a horse-drawn buggy parked in front, with an Amish family clustered around the pay phone outside. Farther down the road, you'll notice a rusty coal dragline tucked into the woods, stranded like the hull of an old freighter, a souvenir of the township's 20th-century mining boom. Among Clarion County's biggest events are the annual Horsethief Days, featuring bed and lawn mower races. In these parts, Republicans outpoll Democrats 2-to-1. "If you could picture the heart of Bush country north of the Mason-Dixon Line, this is it," says Mik Robertson, a produce farmer and one of the township's three elected supervisors.

Four years ago, Robertson and the other supervisors were debating an ordinance to restrict the spreading of toxics-laden sewage sludge on local fields—a major issue in an area that has become a destination for waste from Pittsburgh. The supervisors knew that messing with big business could come at a price: Three years earlier, another Pennsylvania township had passed an anti-sludge ordinance, only to be sued by a sludge hauler called Synagro, which argued that the township had infringed on its rights under the 14th Amendment, passed after the Civil War to guarantee "equal protection" to all. Synagro could make that argument because since the late 19th century, the Supreme Court has defined corporations as legal "persons," conferring on them many of the same rights that belong to flesh-and-blood citizens. And so, Licking's supervisors did something that has been variously described as creative, futile, or out-and-out revolutionary: They passed an ordinance declaring that henceforth, in their township, "Corporations shall not be considered to be 'persons' protected by the Constitution of the United States."

The measure was the brainchild of a brash 37-year-old attorney named Thomas Linzey, who has made a name for himself around the country taking on the principle of corporate personhood—an idea and legal precedent that undergirds much of the past century's rise in corporate power. The director of the Pennsylvania-based Community Environmental Legal Defense Fund, Linzey sees Licking Township's action as one of the opening shots of a movement that will redefine American democracy. "It's about going on the offensive," he says. "The dream is that 30 years out—and my heart sinks, because I don't know if we even have 30 years from an environmental perspective—other places will join hands as well, and lead to a rewrite of the U.S. Constitution."

LINZEY WAS FRESH out of law school in 1995 when he set up the Defense Fund, a group that worked mainly with African American communities battling incinerators and waste dumps. The activists would scour a company's permit application for technical errors, often persuading authorities to reject the facility. "We'd have a victory party," Linzey says. "Everybody would pat themselves on the back. Well, what would happen three months later? The corporate boys would be back, and they'd say to us, 'Thank you very much.' We were actually identifying the gaps in their applications."

Clean-cut, stocky, and blue-eyed, Linzey comes across as temperate, perhaps a little standoffish. But in front of a crowd, his voice takes on a preacher's timbre. His favorite verb is "drive" in its most aggressive sense—as in, "True people's movements seek to drive rights into the Constitution."

As Linzey kept racking up defeats through the '90s, he concluded that the regulatory system was a distraction, or worse. "We were working off a script that we hadn't written. After billions of hours spent by community groups around the nation"—and here his face reddens and his hand slams the table—"nothing was better. Nothing." Activists, he believed, were being channeled into an unwinnable process "like cattle through a chute": As long as the law placed the same value on corporate rights as it did on those of individuals, corporations would always triumph.

Though corporate personhood is now thoroughly ingrained in U.S. constitutional law, it would have been a foreign notion to the founders. For much of the nation's first century, corporations were seen as a means to an end, not unlike associations. They were "chartered," or called into existence, by the states, and their charters could be revoked at any time (a legal possibility now back in vogue among activists in several states); they were not considered "persons" until after the Civil War, when business magnates began to avail themselves of the 14th Amendment's antidiscrimination protections. In the landmark 1886 Supreme Court case Santa Clara v. Southern Pacific, a railroad company refused to pay a special county tax in California, arguing (much as sludge hauler Synagro would do in Pennsylvania more than a century later) that to treat it differently from everyone else violated its constitutional rights. Speaking from the bench, Chief Justice Morrison Waite announced, "The court does not wish to hear argument on the question whether the provision in the 14th Amendment...applies to these corporations. We are all of the opinion that it does."

After Santa Clara, federal judges began granting more and more rights to nonliving "persons." In 1922, the Supreme Court ruled that the Pennsylvania Coal Co. was entitled to "just compensation" under the Fifth Amendment because a state law, designed to keep houses from collapsing as mining companies tunneled under them, limited how much coal it could extract. In 1967 and 1978, businesses prevailed in Supreme Court cases citing the search-and-seizure provisions of the Fourth Amendment as protection against fire and workplace safety inspections.

Corporate lawyers have also taken a shine to the First Amendment. In 1978, the Supreme Court agreed with corporations claiming that the state could not limit their political spending in an antitax campaign. Almost two decades later, a federal appellate court struck down a Vermont law requiring that milk from cows treated with bovine growth hormone be so labeled. Dairy producers had a First Amendment right "not to speak," the court said. In California, Nike invoked the First Amendment to fight a lawsuit arguing that the company's public relations materials misrepresented sweatshop labor conditions.

Most recently, the Retail Industry Leaders Association has relied on the 14th Amendment's equal protection clause to fight Maryland's Wal-Mart law, designed to force the company to expand its spending on employee health care. The retail group has also sued Suffolk County, New York, which last fall passed a similar ordinance aimed at nonunionized supermarkets.


Defenders of corporate rights argue that while the concept may be counterintuitive, the alternative is worse: "If for-profits didn't have First Amendment rights, then Congress could pass a law requiring every retailer to fly an American flag out front," notes Kent Greenfield, a law professor at Boston College who has written extensively on corporate accountability. Ditto for the Fourth Amendment: "Would we really think it's a good thing for the FBI to go into any establishment without a search warrant?"

Yet given corporations' enormous resources, "equal rights" for industry can mean huge advantages—especially in the political arena. Last year, for example, Wal-Mart poured almost $400,000 into a ballot initiative to overturn a ban on certain big-box stores in Flagstaff, Arizona. Included in the media campaign was a newspaper ad comparing Wal-Mart's opponents to Nazi book burners. The retailer apologized but prevailed nonetheless, by 365 votes out of more than 17,000 cast. "What you've seen is the subsuming of the political process to the corporate agenda," says Thom Hartmann, author of Unequal Protections, a book about corporate personhood.

BY THE LATE 1990S, fear and anger over sludge application in rural Pennsylvania—fueled by the deaths of an 11-year-old who got sick after riding his dirt bike through a sludge-treated field, and a 17-year-old who fell ill after exposure to sludge at a farm—was running high. Thomas Linzey found himself fielding calls from local officials desperate for ways to battle the "biosolids" applicators, as well as the corporate hog farms whose stench sickened people for miles around. Municipalities had been used to keeping those nuisances at bay with their own waste ordinances; but in 1997, in response to agribusiness lobbying, the state began enforcing a law that invalidated the local rules. Residents packed schools and fire stations to air their grievances. "These are the people with the shitkickers and the John Deere hats," Linzey says. "These are the people who salt the roads in the wintertime and fix the roads in the summertime. We had rural farmers coming to community meetings with the Declaration of Independence in their back pockets."

To help the townships, Linzey wrote model ordinance after model ordinance. One banned corporations from owning farmland, an idea found on the books in nine states; 12 local governments in Pennsylvania passed it. Another banned companies with previous environmental violations from doing business in a township; 5 municipalities adopted that one. An ordinance requiring companies to do extra testing of sludge for health dangers has passed in more than 70 townships.

Business took note. The Pennsylvania Chamber of Business and Industry's newsletter editorialized against a "stronger force than evil space invaders: the radical agenda of militant environmentalists that seems to have taken possession of the township supervisors." One corporation sued, claiming that the township's restrictions violated its rights with regard to "equal protection, due process, taking without just compensation, and rights guaranteed under the commerce clause." Last year, agribusiness took the fight to the state Legislature, supporting a law under which the state attorney general could sue any local government for passing an ordinance that "prohibits or limits a normal agricultural operation." (The first four such lawsuits were filed this past June.) During debate on the measure, says Linzey, "the suits were out in full force. It was about the heaviest type of lobbying we had ever seen."

Into this fray stepped Supervisor Robertson, a former Peace Corps volunteer who had moved back to Licking Township in 1999 with his wife to grow tomatoes, berries, and garlic on a 95-acre farm fertilized with llama and goat droppings. In Licking Township, the chief qualification for supervisor is the ability to drive a road grader—elected officials do the pothole-filling themselves—and 42-year-old Robertson was appointed to fill a vacancy on the board. He's run twice since then, unopposed. "You don't have people beating down the doors to do this kind of stuff," he says wryly.

In 2002, Robertson learned that several farmers in Licking Township were planning to spread sludge on their fields, and he called Linzey. They discussed tightening local waste regulations, and then Linzey mentioned a model ordinance he'd written to strip corporations of personhood. "The more I looked at that ordinance, the more I liked it," says Robertson, "and the more I realized that it had implications well beyond sewage sludge. This is an issue that is really fundamental to American government." The measure passed unanimously, making Licking the second Pennsylvania township to take such a stance. Somewhat to Linzey's disappointment, no one sued.

PEOPLE FIGHTING corporate personhood like to think of themselves as heirs to the American Revolution. "The colonists realized they needed to tear up the very roots of colonialism, including corporate rule," says Jeff Milchen, director of the Montana-based ReclaimDemocracy.org, a fledgling group focused on corporate power. Indeed, the Revolution was partly an insurrection against entities like the East India Co., whose monopolistic tactics triggered the Boston Tea Party in 1773. The ordinances passed by the Pennsylvania townships, Milchen and others believe, are the modern-day version of such a backlash.

Linzey has his revolution all mapped out. First, local governments will keep passing anti-personhood measures until one of them triggers a lawsuit in the federal courts. This, in turn, will force the judiciary to reconsider the constitutional principles involved. Linzey doesn't expect to win such a case: "People are colonized to think we can turn to the courts for remedy," he says, "and that the judge will hit himself on the forehead and say, 'Oh my God, 200 years of corporate rights are wrong.'" Rather, Linzey expects a ruling in favor of corporations to "rip away the veil of disbelief," prompting even more grassroots organizing and local lawmaking. "You treat the courts as a means to building an army," he says—one that will eventually lead to overhauls of state constitutions, and finally the federal one. The U.S. Constitution, he says, simply focuses too much on "property and commerce," and eventually pressure will build on Congress to call a convention and start from scratch.

For now, though, the campaign remains stuck at Step One. "I'm not ready to say we have a movement," confesses Milchen. "We're not quite there yet." Notes Richard Grossman, who together with Linzey has taught a series of activist seminars around the country dubbed Democracy Schools: "The Populists had 40,000 lecturers organizing people across the U.S. We have five." Both Grossman and Linzey refuse to speak to journalists who haven't undergone their three-day training session; I was the first, to their knowledge, to abide by that rule and attend the seminar, at which a dozen earnest activists underwent a combination of people's history lessons and political shock therapy.

Last year, Linzey lost his biggest battle thus far: In a case involving a Pennsylvania developer, a federal judge called his personhood arguments "tortured" and "illogical" and said she had come "very close" to disciplining him for filing a frivolous lawsuit.

Lawrence Mitchell, a law professor at George Washington University and author of Corporate Irresponsibility, warns that Linzey's strategy is draining energy from more important battles. "I work with a lot of activist groups, and I sit at meetings banging my head on the table," he says. "This is deeply embedded constitutional law that no one's going to reverse." Mitchell believes activists' energy would be better spent on reforming state laws to make corporations more accountable.

And yet, Linzey, Grossman, and company keep drawing converts. The Democratic parties of Maine, New Hampshire, and Washington state have passed resolutions opposing corporate personhood and the constitutional rights it confers. Last March, the 4,600 residents of Barnstead, New Hampshire, approved an ordinance—designed to shield the town's water supply from commercial bottlers—that voids corporate personhood. And in California's Humboldt County, where the timber giant Maxxam and its contractors spent more than $350,000 to recall a crusading district attorney, voters this year approved a ballot measure banning campaign spending by nonlocal businesses, and specifying that "No corporation shall be entitled to claim corporate constitutional rights or protections in an effort to overturn this law."

Linzey knows that his undertaking appears quixotic but—perhaps fittingly—betrays not a hint of uncertainty. "The abolitionists did not seek to create a Slavery Protection Agency, or to make conditions for slaves a little better," he says. "They understood the Constitution left them remediless, and the only thing they could do was to change it."
 
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thoughtone said:
We didn’t get our forty acres and a mule, but businesses did.

..........................................Synagro could make that argument because since the late 19th century, the Supreme Court has defined corporations as legal "persons," conferring on them many of the same rights that belong to flesh-and-blood citizens. And so, Licking's supervisors did something that has been variously described as creative, futile, or out-and-out revolutionary: They passed an ordinance declaring that henceforth, in their township, "Corporations shall not be considered to be 'persons' protected by the Constitution of the United States.".............................


http://www.motherjones.com/news/feature/2006/11/when_is_a_corporation_like_a_freed_slave.html

http://www.ratical.org/corporations/SCvSPR1886.html


I didn't finish the entire article yet but this part jumped out at me as a true sign that Democracy is still alive. This small town is not only standing up to those Corporation bent on destroying their Counties eco-system and farm land but their standing up against the long held belief that Corporations (a business organization) should recieve the same rights as an American citizen. This is most patriotic.

Ok let me keep reading........
 
Is the economy here for people or are people here for the economy and what happen to national sovereignty? Why are “so called” American corporations allowed to have their headquarters based in other countries, while American tax payers and the US military are used to protect and propagate their interests? At the same time they have incredible influence in our government.
 
Obadiah Plainman said:
I didn't finish the entire article yet but this part jumped out at me as a true sign that Democracy is still alive. This small town is not only standing up to those Corporation bent on destroying their Counties eco-system and farm land but their standing up against the long held belief that Corporations (a business organization) should recieve the same rights as an American citizen. This is most patriotic.

Ok let me keep reading........

This is most patriotic.

Not only is this not Patriotic, it is an incorrect interpretation of what the Supreme Court did. Conservatives love to talk about activist courts, this is the ultimate in court activism. Faux News will never bring this topic up. Read the article.
 
thoughtone said:
This is most patriotic.

Not only is this not Patriotic, it is an incorrect interpretation of what the Supreme Court did. Conservatives love to talk about activist courts, this is the ultimate in court activism. Faux News will never bring this topic up. Read the article.


I wasn't commending the Supreme Courts actions, but what the local elected officials were attempting to do. Which was protect their community from being run over by big business.
 
thoughtone said:
Is the economy here for people or are people here for the economy and what happen to national sovereignty? Why are “so called” American corporations allowed to have their headquarters based in other countries, while American tax payers and the US military are used to protect and propagate their interests? At the same time they have incredible influence in our government.

Its called facism.
 
Just another salvo in turning back the clock.


Conservatives Begin To Dismantle The Sherman Anti Trust Act



source: New York Times.com

June 29, 2007

Justices End 96-Year-Old Ban on Price Floors


By STEPHEN LABATON

WASHINGTON, June 28 — Striking down an antitrust rule nearly a century old, the Supreme Court ruled today that it is no longer automatically unlawful for manufacturers and distributors to agree on setting minimum retail prices.

The decision will give producers significantly more leeway, though not unlimited power, to dictate retail prices and to restrict the flexibility of discounters.

Five justices said the new rule could, in some instances, lead to more competition and better service. But four dissenting justices agreed with the submission of 37 states and consumer groups that the abandonment of the old rule would lead to significantly higher prices and less competition for consumer and other goods.

The court struck down the 96-year-old rule that resale price maintenance agreements were an automatic, or per se, violation of the Sherman Antitrust Act. In its place, the court instructed judges considering such agreements for possible antitrust violations to apply a case-by-case approach, known as a “rule of reason,” to assess their impact on competition.

The decision was the latest in a string of opinions this term to overturn Supreme Court precedents. It marked the latest in a line of Supreme Court victories for big businesses and antitrust defendants. And it was the latest of the court’s antitrust decisions in recent years to reject rules that had prohibited various marketing agreements between companies.

The Bush administration, along with economists of the Chicago school, had argued that the blanket prohibition against resale price maintenance agreements was archaic and counterproductive because, they said, some resale price agreements actually promote competition.

For example, they said, such agreements can make it easier for a new producer by assuring retailers that they will be able to recoup their investments in helping to market the product. And they said some distributors could be unfairly harmed by others — like Internet-based retailers — that could offer discounts because they would not be incurring the expenses of providing product demonstrations and other specialized consumer services.

A majority of the court agreed that the flat ban on price agreements discouraged these and other marketing practices that could be helpful to competition.

“In sum, it is a flawed antitrust doctrine that serves the interests of lawyers — by creating legal distinctions that operate as traps for the unaware — more than the interests of consumers — by requiring manufacturers to choose second-best options to achieve sound business objectives,” the court said in an opinion by Justice Anthony M. Kennedy and signed by Chief Justice John G. Roberts Jr. and Justices Antonin Scalia, Clarence Thomas and Samuel A. Alito Jr.

But in his dissent, portions of which he read from the bench, Justice Stephen G. Breyer said there was no compelling reason to overturn a century’s worth of Supreme Court decisions that had affirmed the prohibition on resale maintenance agreements.

“The only safe predictions to make about today’s decision are that it will likely raise the price of goods at retail and that it will create considerable legal turbulence as lower courts seek to develop workable principles,” he wrote. “I do not believe that the majority has shown new or changed conditions sufficient to warrant overruling a decision of such long standing.”

During the period from 1937 to 1975 when Congress allowed the states to adopt laws that permitted retail price fixing, economists estimated that such agreements covered about 10 percent of consumer good purchases. In today’s dollars, Justice Breyer estimated that the agreements translate to a higher annual average bill for a family of four of roughly $750 to $1,000.

The dissent was signed by Justices John Paul Stevens, David H. Souter and Ruth Bader Ginsburg.

The case involved an appeal of a judgment of $1.2 million against Leegin Creative Leather Products Inc. after it cut off Kay’s Kloset, a suburban Dallas shop, for refusing to honor Leegin’s no-discount policy. The judgment was automatically tripled under antitrust law.

Leegin’s marketing strategy for finding a niche in the highly competitive world of small leather goods was to sell its “Brighton” line of fashion accessories through small boutiques that could offer personalized service. Retailers were required to accept a no-discounting policy.

After the United States Court of Appeals for the Fifth Circuit, in New Orleans, upheld the judgment and said it was bound by Supreme Court precedent, Leegin took the case to the Supreme Court. Unless it is settled, the case, Leegin Creative Leather Products v. PSK Inc., will now be sent down to a lower court to apply the new standard.

The Supreme Court adopted the flat ban on resale price agreements between manufacturers and retailers in 1911, when it founded that the Dr. Miles Medical Company had violated the Sherman act. The company had sought to sell medicine only to distributors who agreed to resell them at set prices. The court said such agreements benefit only the distributors, not consumers, and set a rule making such agreements unlawful.

Justice Kennedy said today that the court was not bound by the 1911 precedent because of the “widespread agreement” among economists that resale price maintenance agreements can promote competition.

“Vertical agreements establishing minimum resale prices can have either pro-competitive or anticompetitive effects, depending upon the circumstances in which they are formed,” he wrote.

But Justice Breyer said in his dissent that the court had failed to justify the overturning of the rule, or that there was significant evidence to show that price agreements would often benefit consumers. He said courts would have a difficult time sorting out the price agreements that help consumers from those that harm them.

“The upshot is, as many economists suggest, sometimes resale price maintenance can prove harmful, sometimes it can bring benefits,” he wrote. “But before concluding that courts should consequently apply a rule of reason, I would ask such questions as, how often are harms or benefits likely to occur? How easy is it to separate the beneficial sheep from the antitrust goats?”

“My own answer,” he concluded, “is not very easily.”
 
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source: The Nation.com

Blackwater: Hired Guns, Above the Law

Editor's Note: This is an edited transcript of the prepared testimony of Jeremy Scahill before the Senate Democratic Policy Committee, September 21, 2007.

My name is Jeremy Scahill. I am an investigative reporter for The Nation magazine and the author of the book Blackwater: The Rise of the World's Most Powerful Mercenary Army. I have spent the better part of the past several years researching the phenomenon of privatized warfare and the increasing involvement of the private sector in the support and waging of US wars. During the course of my investigations, I have interviewed scores of sources, filed many Freedom of Information Act requests, obtained government contracts and private company documents of firms operating in Iraq, Afghanistan and elsewhere. When asked, I have attempted to share the results of my investigations, including documents obtained through FOIA and other processes, with members of Congress and other journalists.

I would like to thank this committee for the opportunity to be here today and for taking on this very serious issue. Over the past six days, we have all been following very closely the developments out of Baghdad in the aftermath of the fatal shooting of as many as 20 Iraqis by operatives working for the private military company Blackwater USA. The Iraqi government is alleging that among the dead are a small child and her parents and the prime minister has labeled Blackwater's conduct as "criminal" and spoke of "the killing of our citizens in cold blood." While details remain murky and subject to conflicting versions of what exactly happened, this situation cuts much deeper than this horrifying incident. The stakes are very high for the Bush administration because the company involved, Blackwater USA, is not just any company. It is the premiere firm protecting senior State Department officials in Iraq, including Ambassador Ryan Crocker. This company has been active in Iraq since the early days of the occupation when it was awarded an initial $27 million no-bid contract to guard Ambassador Paul Bremer. During its time in Iraq, Blackwater has regularly engaged in firefights and other deadly incidents. About 30 of its operatives have been killed in Iraq and these deaths are not included in the official American death toll.

While the company's operatives are indeed soldiers of fortune, their salaries are paid through hundreds of millions of dollars in US taxpayer funds allocated to Blackwater. What they do in Iraq is done in the name of the American people and yet there has been no effective oversight of Blackwater's activities and actions. And there has been absolutely no prosecution of its forces for any crimes committed against Iraqis. If indeed Iraqi civilians were killed by Blackwater USA last Sunday, as appears to be the case, culpability for these actions does not only lie with the individuals who committed the killings or with Blackwater as a company, but also with the entity that hired them and allowed them to operate heavily-armed inside Iraq--in this case, the US State Department.

While the headlines of the past week have been focused on the fatal shootings last Sunday, this was by no means an isolated incident. Nor is this is simply about a rogue company or rogue operators. This is about a system of unaccountable and out of control private forces that have turned Iraq into a wild west from the very beginning of the occupation, often with the stamp of legitimacy of the US government.

What happened Sunday is part of a deadly pattern, not just of Blackwater USA's conduct, but of the army of mercenaries that have descended on Iraq over the past four years. They have acted like cowboys, running Iraqis off the road, firing indiscriminately at vehicles and, in some cases, private forces have appeared on tape seemingly using Iraqis for target practice. They have shown little regard for Iraqi lives and have fueled the violence in that country, not just against the people of Iraq but also against the official soldiers of the United States military in the form of blowback and revenge attacks stemming from contractor misconduct. These private forces have operated in a climate where impunity and immunity have gone hand in hand.

Active duty soldiers who commit crimes or acts of misconduct are prosecuted under the Uniform Code of Military Justice, the court martial system. There have been scores of prosecutions of soldiers-- some 64 courts martial on murder-related charges in Iraq alone. That has not been the case with these private forces. Despite many reports--some from US military commanders--of private contractors firing indiscriminately at Iraqis and vehicles and killing civilians, not a single armed contractor has been charged with any crime. They have not been prosecuted under US civilian law; US military law and the Bush administration banned the Iraqi government from prosecuting them in Iraqi courts beginning with the passage of Coalition Provisional Authority Order 17 in 2004. The message this sends to the Iraqi people is that these hired guns are above any law.

US contractors in Iraq reportedly have their own motto: "What happens here today, stays here today." That should be chilling to everyone who believes in transparency and accountability of US operations and taxpayer funded activities-- not to mention the human rights of the Iraqis who have fallen victim to these incidents and have been robbed of any semblance of justice.

The Iraqi government says it has evidence of seven deadly incidents involving Blackwater. It is essential that the Congress request information on these incidents from the Iraqi authorities. What we do know is that in just the past nine months, Blackwater forces have been involved with several fatal actions. Last Christmas Eve, as Katy mentioned, an off-duty Blackwater contractor allegedly killed a bodyguard for the Iraqi Vice President. Blackwater whisked that individual out of the country. Iraqi officials labeled the killing a "murder" and have questioned privately as to why there has apparently been no consequences for that individual. Blackwater says it fired the individual and is cooperating with the US Justice Department. To my knowledge no charges have yet been brought in that case.

This past May, Blackwater operatives engaged in a gun battle in Baghdad, lasting an hour, that drew in both US military and Iraqi forces, in which at least four Iraqis are said to have died. The very next day in almost the same neighborhood, the company's operatives reportedly shot and killed an Iraqi driver near the Interior Ministry. In the ensuing chaos, the Blackwater guards reportedly refused to give their names or details of the incident to Iraqi officials, sparking a tense standoff between American and Iraqi forces, both of which were armed with assault rifles.

The actions of this one company, perhaps more than any other private actor in the occupation, have consistently resulted in escalated tension and more death and destruction in Iraq--from the siege of Fallujah, sparked by the ambush of its men there in March of 2004, to Blackwater forces shooting at Iraqis in Najaf with one Blackwater operative filmed on tape saying it was like a "turkey shoot" to the deadly events of the past week.

Colonel Thomas Hammes, the US military official once overseeing the creation of a new Iraqi military, has described driving around Iraq with Iraqis and encountering Blackwater operatives. "[They] were running me off the road. We were threatened and intimidated," Hammes said. But, he added, "they were doing their job, exactly what they were paid to do in the way they were paid to do it, and they were making enemies on every single pass out of town." Hammes concluded the contractors were " hurting our counterinsurgency effort."

Brigadier General Karl Horst, deputy commander of the 3rd Infantry Division said of private security contractors, "These guys run loose in this country and do stupid stuff. There's no authority over them, so you can't come down on them hard when they escalate force.... They shoot people, and someone else has to deal with the aftermath. It happens all over the place." Horst tracked contractor conduct for a two month period in Baghdad and documented at least a dozen shootings of Iraqi civilians by contractors, resulting in six Iraqi deaths and the wounding of three others. That is just one General in one area of Iraq in just 60 days.

The conduct of these private forces sends a clear message to the Iraqi people: American lives are worth infinitely more than theirs, even if their only crime is driving their vehicle in the wrong place at the wrong time. One could say that Blackwater has been very successful at fulfilling its mission--to keep alive senior US officials. But at what price?

It is long past due for the actions of Blackwater USA and the other private military firms operating in Iraq--actions carried out in the names of the American people and with US tax dollars--to be carefully and thoroughly investigated by the US Congress. For the Iraqi people, this is a matter of life, and far too often, death. In the bigger picture, this body should seriously question whether the linking of corporate profits to war making is in the best interests of this nation and the world. I would humbly submit that the chairs of relevant committees in both the House and Senate use their power of subpoena to compel the heads of the major war contracting companies operating on the US payroll in Iraq to appear publicly before the American people and answer for the actions of their forces. I am prepared to answer any questions.
 
Corportions are robbing us blind right under our noses and nary a peep is heard.

source: Institute for Policy Studies

KEY FINDINGS

1. Of the 100 largest economies in the world, 51 are corporations; only 49 are countries (based on a comparison of corporate sales and country GDPs).

2. The Top 200 corporations’ sales are growing at a faster rate than overall global economic activity. Between 1983 and 1999, their combined sales grew from the equivalent of 25.0 percent to 27.5 percent of World GDP.

3. The Top 200 corporations’ combined sales are bigger than the combined economies of all countries minus the biggest 10.

4. The Top 200s’ combined sales are 18 times the size of the combined annual income of the 1.2 billion people (24 percent of the total world population) living in “severe” poverty.

5. While the sales of the Top 200 are the equivalent of 27.5 percent of world economic activity, they employ only 0.78 percent of the world’s workforce.

6. Between 1983 and 1999, the profits of the Top 200 firms grew 362.4 percent, while the number of people they employ grew by only 14.4 percent.

7. A full 5 percent of the Top 200s’ combined workforce is employed by Wal-Mart, a company notorious for union-busting and widespread use of part-time workers to avoid paying benefits. The discount retail giant is the top private employer in the world, with 1,140,000 workers, more than twice as many as No. 2, DaimlerChrysler, which employs 466,938.

8. U.S. corporations dominate the Top 200, with 82 slots (41 percent of the total). Japanese firms are second, with only 41 slots.

9. Of the U.S. corporations on the list, 44 did not pay the full standard 35 percent federal corpo-rate tax rate during the period 1996-1998. Seven of the firms actually paid less than zero in federal income taxes in 1998 (because of rebates). These include: Texaco, Chevron, PepsiCo, Enron, Worldcom, McKesson and the world’s biggest corporation—General Motors.

10. Between 1983 and 1999, the share of total sales of the Top 200 made up by service sector corporations increased from 33.8 percent to 46.7 percent. Gains were particularly evident in financial services and telecommunications sectors, in which most countries have pursued deregulation.

I. INTRODUCTION

In 1952, General Motors CEO Charles Wilson made the famous statement that “What is good for General Motors is good for the country.”1 During the past decade and a half, General Motors and other global corporations have obtained much of what they claimed was good for them. They have succeeded in obtaining trade and investment liberalization policies that provide global firms considerable new freedoms to pursue profits internationally. They have also persuaded governments to take a generally hands-off approach to corporate monopolies, claiming that mega-mergers are needed for firms to compete in global markets.

This study examines the economic and political power of the world’s top 200 corporations.2 Led by General Motors, these are the firms that are driving the process of corporate globalization and arguably benefiting the most from it. The report then examines the extent to which these firms are fulfilling the second half of Charles Wilson’s promise by providing “what’s good for the country” and global society in general. The conclusion of our analysis is that widespread trade and investment liberalization have contributed to a climate in which dominant corporations are enjoying increasing levels of economic and political clout that are out of balance with the tangible benefits they provide to society.

The study reinforces a strong public distrust of the economic and political power of corporations. In September 2000, Business Week magazine released a Business Week/Harris Poll which showed that between 72 and 82 percent of Americans agree that “Business has gained too much power over too many aspects of American life.”3 In the same poll, 74 percent of Americans agreed with Vice President Al Gore’s criticism of “a wide range of large corporations, including ‘big tobacco, big oil, the big polluters, the pharmaceutical companies, the HMOs.’” And, 74-82 percent agreed that big companies have too much influence over “government policy, politicians, and policy-makers in Washington.”

II. OVERVIEW OF THE TOP 200

U.S. firms lead the pack

Top U.S. firms faced stiff competition from Japanese corporations throughout much of the late 1980s and early 1990s. In 1995, Japanese and U.S. firms were nearly tied in the number of corporations on the Top 200 list, with 58 and 59, respectively. Because the Japanese economy has been in stagnation for nearly a decade, U.S. corporations are once again dominant, comprising 41 percent of the Top 200 in 1999. The countries with the most corporations on the Top 200 list are the United States (82), Japan (41), Germany (20), and France (17) (see Table 1).

Fewer firms outside the industrial giants

In 1999, South Korea was the only country with a corporation on the Top 200 list outside North America, Japan, and Europe. In 1983, Brazil, Israel, South Africa, and India also had firms on the list. The merger boom of the past two decades, particularly among U.S. firms but also in Europe, has further concentrated economic power in companies based in the leading industrial economies. For example, two of the top five firms in 1999 were the products of megamergers: Exxon Mobil (No. 2) and DaimlerChrysler (No. 5).

Services on the rise

The types of firms in the Top 200 also reflect trends in the global economy. During the past decade and a half, the World Bank and International Monetary Fund have promoted reforms to lift controls on investment in banking, telecommunications, and other services, opening new markets for the global giants in these sectors. Hence, the former dominance of manufacturing and natural resource-based corporations among the Top 200 has eroded. Between 1983 and 1999, the share of total sales of the Top 200 made up by service corporations increased from 33.8 percent to 46.7 percent. One major firm, General Electric, helped bolster the service sector component of the list. While GE is best known for appliances, its financial services division has grown so large (at least half of sales) that the company has shifted from the manufacturing to the services category.

Concentration

In 1999, more than half the sales of the Top 200 were in just 4 economic sectors: financial services (14.5 percent), motor vehicles and parts (12.7 percent), insurance (12.4 percent), and retailing/ wholesaling (11.3 percent). 2

Stability at the top

Despite some noteworthy shifts, more than half of the firms that were on the Top 200 list in 1983 made the cut again in 1999. Returnees totaled 103, although in 25 cases they were listed under a different name, due to mergers, spin-offs, and name changes. The most stunning ascendance among the Top 200 firms is that of Wal-Mart. In 1983, the retail giant’s sales were $4.7 billion —far below the Top 200 threshold. By 1999, they had climbed to $166.8 billion, making Wal-Mart the second largest firm in the world.

III. POWER OF THE TOP 200

A. ECONOMIC CLOUT

Top 200 vs. Countries

Of the 100 largest economies in the world, 51 are corporations; only 49 are countries (based on a comparison of corporate sales and country GDPs) (See Table 2). To put this in perspective, General Motors is now bigger than Denmark; DaimlerChrysler is bigger than Poland; Royal Dutch/Shell is bigger than Venezuela; IBM is bigger than Singapore; and Sony is bigger than Pakistan.

The 1999 sales of each of the top five corporations (General Motors, Wal-Mart, Exxon Mobil, Ford Motor, and DaimlerChrysler) are bigger than the GDP’s of 182 countries.

The Top 200 corporations’ combined sales are bigger than the combined economies of all countries minus the biggest 10. 4

Top 200 growing faster than rest of the world

The Top 200 corporations’ sales are growing at a faster rate than overall global economic activity. Between 1983 and 1999, their combined sales grew from the equivalent of 25.0% to 27.5% of World GDP.

Top 200 vs. The World’s Poorest

The economic clout of the Top 200 is particularly staggering compared to that of the poorest segment of the world’s humanity. The Top 200s’ combined sales are 18 times the size of the combined annual income of the 1.2 billion people (24 percent of the total world population) living in “severe” poverty (defined by the World Bank as those surviving on less than $1 per day).

B. POLITICAL CLOUT

Campaign contributions

The 82 U.S. companies on the Top 200 list made contributions to 2000 election campaigns through political action committees (not including soft money donations) that totaled $33,045,832. According to the Center for Responsive Politics, corporations in general outspent labor unions by a ratio of about 15-to-1. The group also found that candidates for the U.S. House of Representatives who outspent their opponents were victorious in 94 percent of their races. Unfortunately, campaign contribution data for non-U.S. firms is not available.

Lobbying

Of course global corporations also spend massive amounts each year influencing the political system through lobbying. The exact amount spent on these activities is not known, but of the Top 200 firms, 94 maintain “government relations” offices located on or within a few blocks of the lobbying capital of the world —Washington, DC’s K Street Corridor.

USTR Inc.

Campaign contributions and lobbying are only the most visible example of corporate political clout. For example, officials with the U.S. Trade Representative’s (USTR) Office, who are responsible for negotiating international trade and investment agreements, routinely state that their primary responsibility is to represent the interests of U.S. industry, rather than all Americans affected by trade deals. This in spite of the fact that the USTR, upon its creation in 1960, was deliberately placed in the White House, rather than the Commerce Department, in order to prevent it from being overly influenced by business interests. In addition, trade negotiators are required to meet with nongovernmental advisory committees, but these are overwhelmingly dominated by representatives of large corporations. Recently, the U.S. government went a step further and allowed representatives from corporations such as AT&T and IBM to join the official delegation in hemispheric talks on electronic commerce in the Free Trade Area of the Americas, which is due to be finalized by 2005.

Transparency

The political influence of top firms is also evident in the scarcity of publicly available information on their activities. Leading corporations have fiercely opposed attempts to require them to achieve a higher level of transparency. Just a few examples of information that U.S. firms are not required to reveal to the American public: • a breakdown of their employees by country • toxic emissions at overseas plants • locations of overseas plants or contractors • wage rates at overseas facilities • layoffs and the reasons for layoffs

In most cases, collecting company-specific data in countries outside the United States is even more difficult.

IV. CONTRIBUTIONS OF THE TOP 200

This section looks at the contributions the Top 200 corporations make to society in terms of jobs and taxes. This is not to deny that these firms may influence our lives in many other ways. Particularly in the United States and other rich nations, it is difficult to go through a day without direct contact with many of these companies, whether you are watching a movie, shopping in a super-market, driving a car, or depositing a check.

Nevertheless, given their extreme levels of economic and political power, it is important to take a hard look at whether these corporate giants are indeed upholding their end of the social compact. The corporations themselves, when lobbying for policies to lift barriers to trade and investment, have promised that they will lead not only to improved consumer goods and services but also to significant job creation and an overall improvement in social welfare. It seems only fair that the public should be able to expect—at a minimum—that these colossal firms be major providers of employment opportunities and that they bear their share of the tax burden.

A. JOBS

Sales vs. Workers

While the sales of the Top 200 are the equivalent of 27.5% of world economic activity, these firms employ only a tiny fraction of the world’s workers. In 1999, they employed a combined total of 22,682,166 workers, which is 0.78% of the world’s workforce.

Profit vs. Employment Growth

Between 1983 and 1999, the number of people employed by Top 200 firms grew 14.4%, an increase that is dwarfed by the firms’ 362.4% profit growth over this period.

Corporate analysts may see the dramatic increase in the ratio between profits and employees as a positive sign of increased efficiency. The growing gap between profits and payrolls is at least partly the result of technological changes that has allowed firms to produce more with less people. Automation is not always a negative development, especially in the case of jobs that are dangerous or otherwise undesirable. However, another factor is the trend towards outsourcing, particularly among large industrial firms. By shifting more and more of their production to contractors, companies can distance themselves from potential charges of labor rights abuses and other illegal behavior and keep labor costs low by forcing contractors to compete for business with an ever smaller number of giant purchasers. The giant firms also have more freedom to hire and fire contractors to meet shifting demand. U.S. corporations have been at the forefront of this trend.

Chrysler (known as DaimlerChrsyler since the merger with Daimler Benz), for example, purchases almost all of its parts, from brakes to seats, from suppliers. Hewlett-Packard relies on 10 different contractors and IBM relies on 8 to make their products. In recent years, Japanese electronics firms, including Mitsubishi, NEC, Fujitsu, and Sony, have also begun to outsource.

Still, Americans may be less concerned about the growing gap between profits and employees because of the country’s record low unemployment rate. What is often ignored in the mainstream media is the fact that unemployment problems remain prevalent elsewhere in the world, including in many countries where the Top 200 firms are enjoying strong profits. (U.S. firms overall earned 19 percent of their profits overseas in 1995).5 In the European Union, the 1999 unemployment rate was 10 percent, compared to 4.2 percent in the United States.6 The International Labor Organization estimates that one billion people worldwide are unemployed or underemployed.7 Joblessness around the world hurts the United States because it reduces the capacity of consumers in other countries to purchase U.S. products and can lead to social instability that has international ramifications.

Wal-Mart Workers

A full 5 percent of the Top 200s’ combined workforce is comprised of Wal-Mart employees. The discount retail giant’s workforce has skyrocketed from 62,000 in 1983 to 1,140,000 in 1999, making it the largest private employer in the world. The next largest, DaimlerChrysler, has a workforce of 466,938—less than half the size of Wal-Mart’s. Although Wal-Mart is indeed providing many new jobs, the company is notorious for its strategy of employing armies of workers on a part-time basis to avoid paying benefits. The firm is also adamantly anti-union. In March, Wal-Mart announced it was closing the meat department in 180 stores two weeks after the meat cutters at one Texas store voted to form a union — the first successful organizing drive at an American Wal-Mart.

B. TAXES

Not too big to hide from tax collectors

The Institute on Taxation and Economic Policy (ITEP) recently released a study of federal tax rates paid by several hundred major, profitable U.S. corporations. Forty-four of the U.S. corporations on the Top 200 list were included in the study, which revealed that not a single one of them had paid the full standard 35 percent corporate tax rate during the period 1996-1998. Seven of the firms had actually paid less than zero in federal income taxes in 1998, because they received rebates that exceeded the amount of taxes they paid. These include: Texaco, Chevron, PepsiCo, Enron, Worldcom, McKesson and the world’s biggest corporation—General Motors.8 According to ITEP, companies use a variety of means to lower their federal income taxes, including tax credits for activities like research and oil drilling and accelerated depreciation write-offs.

Tax Avoidance Internationally

While company-specific data on tax avoidance outside the United States does not exist, the trend towards lower corporate tax burdens is also evident internationally. According to the OECD, over the past two decades the share of total taxes made up by corporate income tax in the industrialized OECD countries has remained about 8 percent, despite strong increases in corporate profits. The organization attributes this decline in tax rates to the use of “tax havens” and intense competition among industrialized countries as they attempt to lure investment by offering lower taxes.9

V. CONCLUSION

As citizen movements the world over launch activities to counter aspects of economic globalization, the growing power of private corporations is becoming a central issue. The main beneficiaries of the market-opening policies of the major multilateral institutions over the past decade and a half are these large corporations, especially the top 200.
 
Evidently, corporations have MORE rights than individual citizens. If a person needs help from the government, it is called welfare and socialism, if a corporation gets bailed out by the government it is said they are too big to fail. Is this what the constitution meant?
 
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Evidently, corporations have MORE rights than individual citizens. If a person needs help from the government, it is called welfare and socialism, if a corporation gets bailed out by the government it is said they are too big to fail. Is this what the constitution meant?
If they both get assistance, but just under different names, how is the Constitution implicated ???

QueEx
 
If they both get assistance, but just under different names, how is the Constitution implicated ???

QueEx

Personal individual economic laws have been in the United States constitution from it's inception (Article 1, Section 8), which allows Congress to enact "uniform laws on the subject of bankruptcies throughout the United States". I site this because those who whine the most about so called big government are the so called conservatives or strict constructionists who are always spouting that the framers of the constitution never intended government to bailout those that have made bad personal decisions. Individuals are mentioned in the constitution, corporations are not. Either way, when government aid to individuals is label as socialism and government aid to corporations is labeled as, "they are too be to let fail", then the hypocrisy of the argument lends me to question the intelligence of the arguer.
 
Corporations have representatives to to personally plead their hard luck stories before congress. Where are the representatives for the those that lost their homes due to the mismanagement of the financial institutions? Corporations have more rights than individuals.

657Bush_Markets.sff.standalone.prod_affiliate.101.jpg
 
If they both get assistance, but just under different names, how is the Constitution implicated ???

QueEx


Because if a person commits welfare fraud they can go to jail. If corporations commit corporate welfare fraud as we see in the current AIG case, who goes to jail?
 
source: Christian Science Monitor

Citizens United: What the Supreme Court's decision on campaign money means for you

Thursday's Supreme Court ruling in the Citizens United case will mean more political ads and, possibly, more moderates in Congress.

With its 5-4 ruling in the Citizens United campaign-finance case, the Supreme Court on Thursday gave big corporations a green light to spend more money on political campaigns.

What does the court's decision mean for you? 1) More political ads and 2) possibly, more moderates in Congress.

Voters may want to scream about No. 1 and cheer No. 2. The last thing most Americans want is more political advertising, when they're already barraged by campaign messages the last two weeks of any important election.

But look at political contributions as an investor would. Who are corporations (or unions or any other special interest, for that matter) going to back: mavericks or mainstream candidates?

They'll back the mainstream, because those candidates have the best chance of winning.

That may sound counterintuitive. Campaign-finance reform was supposed to curb the influence of big interests in defense of the little guy. But somehow, big business and other special interests still seem to have Congress's ear. The bigger impact of Thursday's ruling may be to help moderate candidates at the expense of more partisan ones.

The logic goes this way: When contributions are limited, big money can't flow as easily to the middle. Partisans on either side have a better chance to compete. Now that the Supreme Court has acted, look for more money to move to the middle.

This represents a blow to partisan activists. On the Republican side, corporations will naturally favor the big business side of the party at the expense of social conservatives. On the Democratic side, the move may be more muted: business-friendly and labor-friendly and environment-friendly candidates will probably get the nod.

This may lessen partisanship on Capitol Hill. Think Mike Mansfield or Howard Baker, senators of an earlier era who crossed the aisle when they believed in the cause. But it's also less representative.

Libertarians will find it harder to follow the footsteps of Rep. Ron Paul (R) of Texas. Liberal independents may not move into high office as Sen. Bernard Sanders (I) of Vermont has.

Fewer of them means fewer voices to challenge the status quo – not just of business but of how all of Washington works.
 
source: Disinformation

Republican Leader Asks Businesses Which Laws To Change

Republican Leader Asks Businesses Which Laws To Change




Curious who will be writing the legislation in Congress henceforth? Look towards the drug and oil industries. The House oversight committee’s incoming chairman, Republican Darrell Issa, has begun by sending out letters to 150 companies and business associations asking what laws are constraining growth and need to be changed. Politico reports:
Rep. Darrell Issa (R-Calif.) wants the oil industry, drug manufacturers and other trade groups and companies to tell him which Obama administration regulations to target this year.

The incoming chairman of the House Oversight and Government Reform Committee – in letters sent to more than 150 trade associations, companies and think tanks last month – requested a list of existing and proposed regulations that would harm job growth.

“It was a broad net that we cast,” Issa spokesman Kurt Bardella said.

Bardella did not have a complete list of groups that received an inquiry from Issa or their responses. But a partial list obtained by POLITICO includes ones sent Dec. 13 to Duke Energy, the Association of American Railroads, FMC Corp., Toyota and Bayer. Others receiving inquiries from Issa over the course of the month included the American Petroleum Institute, National Association of Manufacturers (NAM), the National Petrochemical & Refiners Association (NPRA) and entities representing health care and telecommunication providers.

“I believe for the last couple of years that we were honestly shut out of this debate at least on the House side,” NPRA President Charles Drevna said. “Our policy positions haven’t changed one iota. [But] is there a better chance of what I would consider a more fair hearing? Absolutely.” Drevna received a letter from Issa late last month.

The list of regulatory grievances appears wide-ranging. Rosario Palmieri, NAM’s vice president for regulatory policy, and Drevna both highlighted EPA greenhouse gas controls for major emitters that went into effect Sunday.

Palmieri said the group also highlighted in their response to Issa upcoming EPA decisions over whether to tighten limits on ground-level ozone and controlling hazardous air pollutants from incinerators and boilers.
 
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source: Think Progress

VIDEO: Sarah Palin Tells ThinkProgress ‘Mitt Romney Was Right’ That Corporations Are People


Yesterday, former Massachusetts Gov. Mitt Romney (R) made a major gaffe on the campaign trail when he told a crowd of Iowans that “corporations are people.” Romney’s statement was particularly tone deaf because average citizens’ incomes have stagnated for more than a decade while corporations are currently enjoying record profits.

Today, former Alaska Gov. Sarah Palin (R) kicked off a bus tour of Iowa at the state fairgrounds where Romney had stumped the day before. ThinkProgress asked Palin if she agreed with Romney’s belief that corporations are people. Tossing aside previous efforts to position herself as a populist leader, Palin sided with corporations, declaring, “Mitt Romney was right.”
KEYES: Governor, are corporations people?

PALIN: The people pay the taxes. It’s not an entity — the corporation itself — that pays the taxes. It’s the people who pay the taxes. So Mitt Romney was right.
Watch it:



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Note to Palin: corporations as legal entities do in fact pay taxes. While the entity has a tax bill, there is someone somewhere that ultimately has less money as a result.

Unfortunately, Palin is not the first GOP bigwig to defend Romney’s assertion that corporations are people. Yesterday, ThinkProgress spoke with Sen. Rand Paul (R-KY) who vociferously backed up Romney, saying, “all of us are corporations.”
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