Brace yourselves. The U.S. Supreme Court just overturned a portion of the McCain-Feingold campaign finance reform bill that limits corporations’ ability to influence elections. In short, the ruling allows corporations, including those owned by foreigners, to spend unlimited amounts of money to influence the political process.
For example, British Petroleum could spend $5 billion next presidential election to publish or broadcast advertising or to hold events to support or oppose a candidate or, next month, to support or oppose pending legislation regarding the taxation, sale, use or transport of fuel.
The decision was rooted in the court’s interpretation of the First Amendment to the U.S. Constitution guaranteeing free speech. It apparently vests the same rights of freedom of expression in corporations as it gives to citizens.
Constitutional scholars can argue the technical merits of both sides of the issue, but the effect of the ruling could be huge. Corporations, whether they are designed to produce goods and service or specifically to influence the governmental process can now invest unlimited amounts of money to sway public policy, and it doesn’t matter whether the corporation is owned by American stockholders or by Chinese stockholders.
We can be sure that both political parties will partner with corporations to exploit this enlarged opportunity, and it is virtually certain that other corporations will act on their own as they perceive it to be in their interest. Corporations already exert tremendous pressure through lobbying; now they can also use their vast wealth to influence voters directly. What legislator is going to propose new environmental regulations if he knows that the companies who need to be regulated have unlimited funds to not only sway the votes of other legislators, but also to promote an opposing candidate in the next election?
It will be fascinating to see how this plays out, but good theater does not make good policy. The Supreme Court’s decision may or may not be constitutionally sound, but it bodes ill for the interests of American citizens who are already mired in an economic morass largely as a result of corporate misbehavior. It can only further the perception that every aspect of government is for sale to the highest bidder — or at least to the entity with the deepest pocket.
