Sunday, October 25, 2009

Amendment XIV

All persons born or naturalized in the United States, subject to 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 law.

Section 1. of the Amendment XIV ratified July 9th 1868

The 14th Amendment has commonly been viewed -like the 13th Amendment- as the extension of the rights of man, put forth by the English philosopher John Locke almost a century earlier, to “life liberty and property." Abolitionists saw expansion of such rights to a previously subjugated population as the further fulfillment of the Enlightenment ideals that this country was founded upon. The 14th Amendment to protect the rights of newly freed slaves would unwittingly aide in the establishment of the most influential organization in modern America, the corporation.

Prior to much of the 19th century, businesses were relatively small enterprises run by individuals. As the Industrial Revolution swept through Europe and into America the scale of business enterprises grew considerably. Business leaders and entrepreneurs sought new forms of organizational structure to support increasingly complex ventures. Joint-stock companies had existed for more then a hundred years in Europe. In America these companies took on new form under the 14th Amendment.

Business representatives argued that companies constituted a person under the law and the Supreme Court went along with it. Between 1890 and 1910 288 cases were brought to the Supreme Court on behalf of these newly formed citizens, only 19 by former slaves. Following Reconstruction in the United States former slaves acquired little land, and lacked substantive economic opportunity unlike their corporate counter parts, who procured vast amounts of wealth for their shareholders. Corporations participated far more actively and effectively in American politics than many other citizens during the 19th century. The modern corporation facilitated westward expansion through the construction of railroads, which connected industrial centers and the raw resources needed to promote further economic growth.

The formation of a limited liability company protects individual investors (shareholders) from being prosecuted should the corporation be found to be abusive, negligent or insolvent. Effectively alleviating those who own the company (the shareholders) from direct responsibility for the actions of the company. This business structure has often put the interest of the company and the shareholders at odds with workers and communities in which they carry on business. Over the last hundred years these corporate citizens have become increasingly complex institutions which permeate all facets of the American economy.

Today the America corporation is more influential then ever. They represent an integral part of the national economy, and conduct business all over the globe. Americans’ sentiment toward their corporate brethren is often mixed. Free market advocates argue that the modern corporation is one of the most effective models of organization in the world, and fiercely resist regulation. Throughout the 20th century various institutions throughout America have been privatized, including prisons, schools, and hospitals. Billions of dollars of government funds are awarded to private contractors each year to build public facilities, provide school lunches, and various other services. Critics of these measures argue that increasing privatization provides corporations with undue political leverage over the public. Unlike many private citizens, corporations possess substantial means to advance their personal interest. Many civil groups fear that this power will enable corporations to pursue their own interests to the detriment of the general public. In an effort to limit the influence of corporate interests Congress has attempted to draft legislation to regulate corporate contributions to individual politicians and advocacy groups. Modern corporate lawyers argue that financial contributions to campaigns, and political organizations represent free speech, protected under the 1st Amendment. The further interpretation of the law will determine the extent to which corporations can exert their considerable influence on the public debate.

No comments: