That supremacy was achieved on May 10, 1886, with a decision by the U.S. Supreme Court in a case titled County of Santa Clara v. Southern Pacific Railroad Company (118 U.S. 394). The matter before the court turned on taxes and assessments which Santa Clara County believed it was owed by Southern Pacific Railroad. The court found for the railroad company, and enshrined the following words into the annals of American law:
"The court does not wish to hear argument on the question whether the provision in the Fourteenth Amendment to the Constitution, which forbids a State to deny to any person within its jurisdiction the equal protection of the laws, applies to these corporations. We are all of opinion that it does. The defendant Corporations are persons within the intent of the clause in section 1 of the Fourteenth Amendment to the Constitution of the United States, which forbids a State to deny to any person within its jurisdiction the equal protection of the laws."
Section 1 of the Fourteenth Amendment to the Constitution reads as follows:
"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."
...This was the birth of corporate personhood, the idea that a corporation has the same rights and privileges as a single individual. From this point on, in the argument over how much power any single company or group of companies could gather, all bets were off. The court's decision in 1886 essentially created what could be described as super-citizens.
Kalle Lasn, in his book 'Culture Jam', describes it this way: "Considering their vast financial resources, corporations thereafter actually had far more power than any private citizen. They could defend and exploit their rights and freedoms more vigorously than any individual and therefore they were more free. In a single legal stroke, the whole intent of the American Constitution - that all citizens have one vote, and exercise an equal voice in public debates - had been undermined. Sixty years after it was inked, Supreme Court Justice William O. Douglas concluded of Santa Clara that it 'could not be supported by history, logic or reason.' One of the great legal blunders of the nineteenth century changed the whole idea of democratic government."
By 1919, corporations employed more than 80% of the American workforce and produced most of America's wealth. Because they were so financially powerful, it became impossible to challenge their supremacy in court: Any challenger would be spent into the ground. Their ability to manipulate domestic and foreign policy via financial largesse to political leaders created a nation where virtually every decision purportedly made in the name of the people was, in fact, an extension of corporate desire.
In every way imaginable, a slow coup d'état had taken place in the United States. And war, as ever, increased their fortunes. In the aftermath of World War II, corporations were rolling in the profits earned through procurements from the federal government, exactly as they had during the Civil War. The difference between 1865 and 1946 was the personhood granted by the Santa Clara decision.
The power enjoyed by corporations after the war, augmented by the military ramp-up of the Cold War, motivated another American President to voice another warning. President Eisenhower, in his farewell speech on January 17, 1961, said:
"We have been compelled to create a permanent armaments industry of vast proportions. Added to this, three and a half million men and women are directly engaged in the defense establishment. We annually spend on military security more than the net income of all United States corporations. This conjunction of an immense military establishment and a large arms industry is new in the American experience. The total influence-economic, political, even spiritual-is felt in every city, every State house, every office of the Federal government. We recognize the imperative need for this development. Yet we must not fail to comprehend its grave implications. Our toil, resources and livelihood are all involved; so is the very structure of our society.
"In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist. We must never let the weight of this combination endanger our liberties or democratic processes. We should take nothing for granted. Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense without peaceful methods and goals, so that security and liberty may prosper together."
Eisenhower's warning went unheeded. Revenues from government procurements to fight the Cold War, along with several actual shooting wars in places like Korea and Vietnam, further strengthened corporate rule in America. Corporations merged, expanded, became stand-alone economies more powerful than many sovereign nations. During the administration of Ronald Reagan, which worked day and night to further deregulate the controls placed upon corporations, and which spent untold billions on further expanding the American military, what can only be described as total victory over democracy was achieved by the corporate powers-that-be.
- "Freedom, Incorporated" Monday 21 June 2004
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P.S. the unfairness of corporate personhood also manifests itself in the judicial system. Corporations are usually established to shield the individual principals - the original partners who formed the interest - from civil and criminal litigation. But corporate personhood grants 14th Amendment rights to corporations, essentiually turning those corporations into citizens...but citizens
who cannot be successfully sued, which thus protects the individuals who run the corporation.