Is Granting Unintended Rights to Corporations a Part of Capitalism?

Here’s a discussion I’m having with a reader on the subject of the Supreme Court ruling of January 2010 that grants the rights of real persons to corporations. I hope other folks will join in. 

PS: I don’t understand how corporations can “extend their powers” as a result of the Supreme Court ruling you mention.

Craig: It’s fairly simple. Let’s take an example. Chevron made $24 billion profit last year.  Now I’m not saying that they will do this, but as of January, 2010, they can spend as much of that as they want influencing our elections, ensuring the victory of a candidate who supports them, who will make things difficult for renewable energy and electric transportation while continuing or expanding favors for oil, which currently include:

• Construction bonds at low interest rates or tax-free
• Research-and-development programs at low or no cost
• Assuming the legal risks of exploration and development in a company’s stead
• Below-cost loans with lenient repayment conditions
• Income tax breaks, featuring obscure provisions in tax laws designed to receive little congressional oversight when they expire
• Sales tax breaks – taxes on petroleum products are lower than average sales tax rates for other goods
• Giving money to international financial institutions (the U.S. has given tens of billions of dollars to the World Bank and U.S. Export-Import Bank to encourage oil production internationally)
• The U.S. Strategic Petroleum Reserve
• Construction and protection of the nation’s highway system
• Relaxing the amount of royalties to be paid – apparently, we get about 40% of revenues from oil on public land vs. 60% – 65% in most other countries
• Not forcing the industry to deal with the “externalities” – healthcare costs, long-term environmental damage, etc. — costs that are becoming increasingly clear and subject to quantification

I just picked an oil company because I happen to know more about energy than I do about healthcare, food, etc. Each industry has its own horror story to tell.　

PS: Craig, I get it, I think.  So the more money you have as an individual or corporation, the more power you have. Maybe this is capitalism.

Craig: Actually, it would be more correct to call it “feudalism.” This is what we had 900 years ago, before the Magna Carta, the rule of law, the Age of Reason, the Enlightment with the American and French Revolutions, the Bill of Rights, the abolition of slavery, woman suffrage, civil rights, the end of apartheid, and the hundreds of other pieces of progress we’ve made in fits and starts towards a more civil society. I don’t think we want to go make to the days of “might makes right.”

There is a reason we refer to this period of history as the “Dark Ages.”  It wasn’t a picnic. And, sadly, we’re about a micron away from heading back in that direction.