Are Corporations Gaining Too Much Power?

by Gabriel Sobande

Many people believe that corporations have gained too much influence on society.  The housing crisis of 2008 and the Supreme Court decisions on Citizens United v. Federal Election Commission and McCutcheon v. Federal Election Commission are just a few examples of corporate power gone out of control. This rise in corporate power is often attributed to decreased regulation of big business. Laws such as the Glass-Steagall Act of 1933 helped regulate banking practices but it was repealed. This caused banks to become increasingly self-regulating. During the housing crisis banks decreased their standards for lending. They knowingly gave loans to people that would not be able to keep up their payments. People defaulted on their loans and even declared bankruptcy. This led to the recession of 2008. Many banks were deemed too big to fail and were given bailouts with tax payer money. The bailout totaled 700 billion dollars and significantly increased the national debt. According to a report by then Attorney General Andrew Cuomo, bankers were given bonuses of up to one million dollars each. These bonuses were paid with taxpayer money. The banks were not held responsible for their actions because they were considered too big to fail. Corporate power has even withstood the highest court of the land.

The Supreme Court has ruled in favor of corporate interests in Citizens United v. Federal Election Commission and McCutcheon v. Federal Election Commission. In Citizens United the Supreme Court ruled that the government can’t restrict independent political expenditures by corporations. Many of the Justices saw their decision as a protection of the first amendment. Justice Kennedy wrote “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.” They basically agreed that money equates to free speech. A New York Times editorial wrote “The Supreme Court has handed lobbyists a new weapon. A lobbyist can now tell any elected official: if you vote wrong, my company, labor union or interest group will spend unlimited sums explicitly advertising against your re-election.” This poses a serious danger to our political process. This decision greatly influenced the court’s ruling in McCutcheon v. Federal Election Commission.

McCutcheon v. Federal Election Commission determined that it was unconstitutional for the government to set limits on aggregate spending. Corporations can donate money to an unlimited number of candidates in an election cycle. It still upheld limits on spending to individual candidates. Conservative Justices like Roberts quoted from Bucky v. Valeo saying the overall limits “intrude without justification on a citizen’s ability to exercise ‘the most fundamental First Amendment activities.’” Once again they have ruled that money equates to free speech. Many believe that corporations already have an overwhelming influence on our political process. This latest Supreme Court decision only helps to exacerbate those fears. It’s ridiculous for anyone to believe that corporate spending on candidates won’t influence their policies after they are elected.

Corporations don’t give money to candidates out of the goodness of their hearts. They give money to specific candidates because they think that person will promote their interests. If money is equal to free speech then corporations will be the loudest voices in the room. Average Americans will not be heard so their interests are unlikely to be considered. It seems that corporations pose a serious threat to equality and representation in our democracy.

By: sobande426