To Restore Democracy: First Abolish Corporate Personhood

Thomas Paine said it best.

“It has been thought,” he wrote in The Rights of Man in 1791, “…that government is a compact between those who govern and those who are governed; but this cannot be true, because it is putting the effect before the cause; for as man must have existed before governments existed, there necessarily was a time when governments did not exist, and consequently there could originally exist no governors to form such a compact with. The fact therefore must be, that the individuals themselves, each in his own personal and sovereign right, entered into a compact with each other to produce a government: and this is the only mode in which governments have a right to arise, and the only principle on which they have a right to exist.”

Thus, Paine and others of the Revolutionary Era reasoned, any institution made up by and of humans - from governments to churches to corporations - must be subordinate to individual living people in terms of the rights and powers held by the institution.

Because of the unique frailties and depths of passion unique to humans, just after the United States Constitution was ratified Thomas Jefferson and James Madison began a campaign to amend it with a 12-point explicit statement that would clearly and unambiguously place humans - who had created government - above their creation. This was the birth of what would become the Bill of Rights, and it originally had twelve - not ten - protections for citizens’ rights.

On December 20th, 1787, Jefferson wrote to James Madison about his concerns regarding the Constitution. He said, bluntly, that it was deficient in several areas. “I will now tell you what I do not like,” he wrote. “First, the omission of a bill of rights, providing clearly, and without the aid of sophism, for freedom of religion, freedom of the press, protection against standing armies, restriction of monopolies, the eternal and unremitting force of the habeas corpus laws, and trials by jury in all matters of fact triable by the laws of the land, and not by the laws of nations.”

Such a bill protecting natural persons from out-of-control governments or commercial monopolies shouldn’t just be limited to America, Jefferson believed. “Let me add,” he summarized, “that a bill of rights is what the people are entitled to against every government on earth, general or particular; and what no just government should refuse, or rest on inference.”

The following year, Jefferson wrote about his concerns to several people. In a letter to Mr. A. Donald, on February 7th, 1788, he defined the items that should be in a bill of rights: “By a declaration of rights, I mean one which shall stipulate freedom of religion, freedom of the press, freedom of commerce against monopolies, trial by juries in all cases, no suspensions of the habeas corpus, no standing armies. These are fetters against doing evil, which no honest government should decline.”

Jefferson kept pushing for a law, written into the constitution as an amendment, which would guarantee liberties for citizens, prevent companies from growing so large they could dominate entire industries or have the power to influence the people’s government, and reduce the possibility of the nation being taken over by a military coup.

On February 12th, 1788, he wrote to Mr. Dumas about his pleasure that the US Constitution was about to be ratified, but also expressed his concerns about what was missing from the Constitution. He was pushing hard for his own state to reject the Constitution if it didn’t protect people from the dangers he foresaw.

“With respect to the new Government,” he wrote, “nine or ten States will probably have accepted by the end of this month. The others may oppose it. Virginia, I think, will be of this number. Besides other objections of less moment, she [Virginia] will insist on annexing a bill of rights to the new Constitution, i.e. a bill wherein the Government shall declare that, 1. Religion shall be free; 2. Printing presses free; 3. Trials by jury preserved in all cases; 4. No monopolies in commerce; 5. No standing army. Upon receiving this bill of rights, she will probably depart from her other objections; and this bill is so much to the interest of all the States, that I presume they will offer it, and thus our Constitution be amended, and our Union closed by the end of the present year.”

By mid-summer of 1788, things were moving along and Jefferson was helping his close friend James Madison to write the Bill of Rights. On the last day of July, he wrote to Madison: “I sincerely rejoice at the acceptance of our new constitution by nine States. It is a good canvass, on which some strokes only want retouching. What these are, I think are sufficiently manifested by the general voice from north to south, which calls for a bill of rights. It seems pretty generally understood, that this should go to juries, habeas corpus, standing armies, printing, religion, and monopolies.”

But on the issues of banning a standing army and blocking corporations from gaining monopolistic control over industries, Jefferson was getting resistance. The nation had just fought a bloody war against England, and there was little sentiment for completely dismantling the army. And the Federalists who were in power - a party largely made up of what Jefferson called “the rich and the well born” - were opposed to government constraints on business activities.

Thus only ten of his twelve visions for a Bill of Rights - all except “freedom from monopolies in commerce” and his concern about a permanent army - were incorporated into the actual Bill of Rights, which James Madison shepherded through Congress and was ratified as the first ten amendments to the constitution on December 15, 1791.

Monopolies as persons

As the new country grew, so did its institutions. Trading companies, banks, and eventually railroads all used the corporate form to conduct business, reduce shareholder liability, and accumulate profits. America boomed through the early 19th Century, then experienced a severe economic depression in the decade just before the Civil War, then boomed again, starting in the post-war years of the late 1860s.

And then a curious thing happened.

The stage was set when, just after the Civil War on July 9, 1868, three-quarters of the states ratified the Fourteenth Amendment to the US Constitution as part of a set of laws to end slavery.

The intent of Congress and the states was clear: to provide full constitutional protections and due process of law to the now-emancipated former slaves in the United States. The Fourteenth Amendment’s first article says, in its entirety:

“All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the state wherein they reside. No state shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any state deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws.”

Along with the Thirteenth Amendment (“Neither slavery nor involuntary servitude … shall exist within the United States”) and the Fifteenth Amendment (“The right of citizens of the United States to vote shall not be denied or abridged by the United States or by any State on account of race, color, or previous condition of servitude”), the Fourteenth Amendment guaranteed that freed slaves would have full access to legal due process: “equal protection of the laws.”

Corporations aspire to personhood

During this same period, because everybody understood Paine and Jefferson’s argument that human-made institutions must be subordinate to humans themselves; virtually every state had laws on the books that regulated the behavior of corporations.

The corporate form is, after all, just a legal structure to facilitate the conversion of products or services into cash for stockholders. As Buckminster Fuller wrote in his brilliant essay The Grunch of Giants, “Corporations are neither physical nor metaphysical phenomena. They are socioeconomic ploys-legally enacted game-playing-agreed upon only between overwhelmingly powerful socioeconomic individuals and by them imposed upon human society and its all unwitting members.”

Thus, states made it illegal for corporations to participate in the political process: politicians were doing the voters’ business, and corporations couldn’t vote, so it didn’t make sense they should be allowed to try to influence votes. States made it illegal for corporations to lie about their products, and required that their books and processes always be open and available to government regulators. States and the Federal government claimed the right to inspect companies and investigate them when they caused pollution, harmed workers, or created hazards for human communities, even if in the early years that right was unevenly used.

These constraints and oversights had been a thorn in the side of the barons of trade and industry from the earliest days of the new American republic. But what to do about it?

With the passage of the Fourteenth Amendment, the owners of the what were then America’s largest and most powerful corporations - the railroads - figured they’d finally found a way to reverse Paine’s logic and no longer have to answer to “we, the people.” They would claim that the corporation is a person. They would claim that for legal purposes, the certificate of incorporation declares the legal birth of a new person, who should therefore have the full protections the voters have under the Bill of Rights.

It was an amazing irony, given that one of Jefferson’s original proposed Amendments was an explicit ban on corporations becoming so large as to gain monopoly power and be able to easily crush or stifle small, local entrepreneurs. But, setting the irony aside, the railroads threw massive resources into their new campaign to be given full human rights.

Acting on behalf of the railroad barons, attorneys for the railroads repeatedly filed suits against local and state governments that had passed laws regulating railroad corporations. They rebelled against restrictions, and most of all they rebelled against being taxed....

But the first step, as always, is awakening people to the root cause of the problems we face - the use of corporate personhood by a handful of the world’s largest enterprises to insinuate themselves into governments and seize control of legislative and regulatory agendas. As enough voters learn the history and realize the consequences of this, the solution - ending corporate personhood - will become more and more possible, and Paine’s and Jefferson’s original idea of democracy representing “we, the people” will come back to life.