Think of corporate influence peddlers and you might envision distant
figures working the halls of Congress and state capitols. But more
and more, they roam city halls, municipal offices and even local
shopping malls, attempting to snuff the growing trend of communities
setting limits on corporate activities. But regardless of location,
the goal of the corporate lawyers and lobbyists remains the same:
to use the enormous wealth of their employers to get what they
want -- even if it means trampling democracy.
California evidenced this trend with last Tuesday's elections,
in which three different communities faced corporate attempts to
spend their way to victory on ballot initiatives.
Wal-Mart -- the world's largest corporation and soon to become
the nation's largest
corporate investor in elections -- wasn't
pleased with a decision last year by officials in Contra Costa
County (just east of San Francisco). The County recently joined
a growing number of communities nationwide to pass laws limiting
the size of enormous new “supercenters” that sell groceries as
well as general merchandise. Wal-Mart used company funds to hire
a corps of signature gatherers and placed an initiative on the
ballot to rescind the law. In a slap in the face to its workers,
Wal-Mart paid these political operatives $10 per hour -- $2 more
than its typical store employees. Wal-Mart's million-dollar public
relations campaign tripled spending by opponents and persuaded
voters to overturn the ordinance (the company was aided by the
poor construction of the law).
But big money doesn't win every time. On the same day, voters
rejected attempts by CropLife America and Pacific Lumber to translate
their economic power into political victories.
CropLife, a political creation of corporations such as Monsanto,
Dow and DuPont, funded a failed campaign to defeat a Mendocino
County citizen initiative that would ban growing genetically manipulated
crops or animals within the county. Winning 57% of votes cast,
Measure H made Mendocino the first county in the nation to pass
such a ban despite the industry opponents spending more than $600,000 – a
county record that exceeded $54 in expenditure for each “no” vote.
Meanwhile, just north of Mendocino, executives at Pacific Lumber
Company (a division of giant Maxxam Inc.) were upset with Humboldt
County district attorney Paul Gallegos, who sued Pacific for allegedly
lying about plans to log giant redwoods trees on steep slopes.
Gallegos filed the suit after the cutting caused extensive flooding
and damage to local farmland. Pacific spent about $250,000 to run
a ballot initiative to oust Gallegos from his job, but failed decisively.
Even political opponents of the district attorney balked at allowing
a transnational corporation to terminate a fraud case by eliminating
its accuser.
But Pacific isn't done yet -- it's emulating Nike's
failed 2003 attempt to claim a constitutional right to lie. The company has
filed a countersuit claiming an obscure anti-trust provision – the “Noerr-Penington
Doctrine” -- gives corporations the legal right to lie to government
officials.
Though money doesn't necessarily buy a win, we should question
why corporations are permitted to use corporate funds to influence
any democratic process in the first place. Despite occasional setbacks,
corporations have steadily seized more power over our laws and
public institutions, thanks to decades of systematic efforts that
have reshaped the law to fit corporate agendas rather than citizens'
interests.
Back in 1971, a corporate lawyer named Lewis Powell wrote a telling
memo to the U.S. Chamber of Commerce. He asserted that big business
should seek power through “careful long-range planning and implementation” and
that power “must be used aggressively and with determination, without
embarrassment…” Powell specified that ”The judiciary may
be the most important instrument for social, economic and political
change.”
A month later Richard Nixon appointed Powell to the United States
Supreme Court. Powell went on to write the opinion in First
National Bank of Boston v. Bellotti , a 1978 decision that
created a First Amendment “right” for corporations to influence
ballot initiatives and other political campaigns. As one writer
commented at the time in the American Bar Association Journal,
the Court had constructed a “monster…like Dr. Frankenstein's creation” that
was likely to trample over democracy. The Bellotti decision
is a big reason why corporations now dominate national politics
and why companies like Wal-Mart can impose the will of corporate
executives on communities around the country.
Undermining democracy
can be lucrative for some corporations, but costly for the rest
of us. In the case of Wal-Mart, its legendary low wages don't
impact only workers -- many employees end up requiring public assistance
despite having jobs, while better-paying competitors are driven
out of business. According to a recent University of Southern
California study, the spread of Wal-Mart supercenters in southern
California could result in $1.4 billion in wage and benefit losses
annually.
Citizens still can win the occasional battle over corporate interests.
But victory in the larger struggle over whether it's citizens or
corporations determining the future of our communities and country
will depend on changing the rules of engagement.
As Contra Costa county Supervisor Jon Gioia stated, it's about
local citizens having the right to make the laws in their own communities, “not
Wal-Mart executives in Bentonville, Arkansas .”
Milchen directs ReclaimDemocracy.org, a non-profit organization working to restore citizen authority over corporations. Kaplan is an organizer of the group's San Francisco Bay area chapter. They are building support for a constitutional amendment to revoke corporate claims to constitutional privileges.
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