> But I think the boring answer here is that we sometimes need legal abstractions.
Absolutely - the legal abstraction is that corporations are corporations, not people. The article went with a lighter hearted quip but here's my own tired old one:
If corporations are people, then owning shares is unconstitutional as that would be a form of slavery.
I don't understand this POV, can you explain what I'm missing?
Usually when people say "corporations aren't people" I think they are confused about the need for an abstraction. But you acknowledged the need for an abstraction.
I don't imagine you are confused about the status quo of the legal terminology? AFAIK, the current facts are: the legal term "person" encompasses "natural person" (ie the common meaning of "person") and "legal person" (ie the common usage of "corporation"). In legalese, owning shares of legal persons is not slavery; owning shares of natural persons is; owning shares of "people" is ambiguous.
I don't imagine you are advocating for a change in legal terminology. It seems like it would be an outrageously painful find-and-replace in the largest codebase ever? And for what upside? It's like some non-programmer advocating to abandon the use of the word "master" in git, but literally a billion times worse.
Are you are just gesturing at a broader political agenda about reducing corporate power? Or something else I am not picking up on?
The argument is that the need for abstraction doesn't mean we must reuse an existing concept. We should be able to talk about corporations as entities and talk about what laws or rights should apply, without needing to call them people.
But the existing concept by and large has the properties we want. The ability to form contracts, to be held civilly or criminally liable for misconduct, to own property, etc. That we say something is a juridical person isn't some kind of moral claim that it's equivalent in importance to a human, it's just a legal classification.
Corporations can be held criminally liable, but they can't go to prison. And while lots of countries have gotten rid of the death penalty, a corporation can actually be "executed" by getting dissolved.
At least for me, the problem is that making them completely equivalent in a legal sense has undesirable outcomes, like Citizens United. Having distinct terms allows for creating distinct, but potential overlapping sets of laws/privileges/rights. Using the same term makes it much harder to argue for distinctions in key areas
But they aren't completely equivalent. Natural persons can vote; juridical persons cannot. Natural persons have a constitutional right to avoid self-incrimination; juridical persons do not; etc. There's just a lot in common between the two, because it makes sense for there to be a lot in common. Citizen's United v FEC was a transparently terrible ruling, but it was in no way implied by the mere existence of corporate personhood. It was a significant expansion of the interpretation of corporate personhood that directly overturned a prior supreme court ruling on campaign finance regulation.
It was a major expansion, based solely on the reuse of the term. It’s why I used it as an example.
The main arguments boils down to that since corporations are people and have free speech, and that a natural persons financial activity is considered protected speech, that a corporate person should have the same freedom as there should be no distinctions about the rights afforded to a person.
The entire argument would have been moot if we used distinct terminology
There were then and still are now constitutional rights afforded to natural persons but not juridical persons. There is not some inability to distinguish the two. Look at the ruling that Citizens United overturned: https://en.wikipedia.org/wiki/Austin_v._Michigan_Chamber_of_.... It was very clear that it's fine (and necessary) to restrict corporations in some ways precisely because they are not people.
Perhaps the argument of Citizens United wouldn't have been made if we instead used the terms "Human Shmerg" and "Legal Shmerg", but exactly the same argument could apply to shmergness as to personhood when discussing the rights afforded to shmergs of one kind or another, and the conservatives in the US really want to deregulate everything.
Thats exactly my point, you do not have to use the exact same term for both types. You could literally just use “person” and “corporation” as wholly distinct terms with overlapping rights afforded to each and avoid the edge case semantic arguments that create legal situations that the majority takes issue with.
I'd venture to guess that whatever legal logic resulted in the SC deciding that corporations should have the same right to free speech as individuals presumably doesn't hinge on any semantic blurriness between different subsets of "persons", and even if they didn't use overlapping terms it would still have ruled thus.
That said, it certainly is nice free marketing for our corporate overlords.
The entire cry of "corporations aren't people!" is based and a complete misunderstanding of what a legal person is. You've done a great job at explaining.
Unfortunately, there are a lot of people who willfully propagate these misunderstandings. Because by saying "of course corporations aren't people, and everybody knows this except those dumb <other side>", it's an easy way to try to vilify the other side as dumb/evil. When the reality is that it's simply a tried-and-true necessary and useful legal concept, that virtually nobody but lawyers would even be familiar with in the first place, if it weren't for activists who thought it sounded scandalous.
> The entire cry of "corporations aren't people!" is based and a complete misunderstanding of what a legal person is.
> if it weren't for activists who thought it sounded scandalous
It wasn’t activists who first misunderstood the concept, it was the Supreme Court, who decided that corporate personhood gives corporations the same first amendment rights as real personhood. It’s not ridiculous to point out that if freedom of speech is implied by corporate personhood, it was insane to give corporations personhood in the first place.
The Supreme Court was going to decide whatever they wanted, regardless of which linguistic terms were used to describe the underlying legal concepts which remain the same.
If you look at the text of the first amendment, the word "person" doesn't appear in that part. It says "Congress shall make no law... abridging the freedom of speech." It doesn't say that the speech has to come from "persons". So I'd say you're the one misunderstanding here.
I think it was a dumb Supreme Court decision, but I'm not going to pretend it had anything to do with the fact that corporations are called a "legal person" instead of a "legal entity" or some other term that ends up meaning the exact same thing. Disagree with their decision, great. But arguing over legal terminology is a waste of breath.
> If you look at the text of the first amendment, the word "person" doesn't appear in that part.
This is irrelevant, but anyway it has the word “people” in it. Either way the bill of rights is a list of personal rights.
> The Supreme Court was going to decide whatever they wanted, regardless
The Supreme Court is also supposed to justify their position. It makes sense to protest their justification. That’s how the courts work.
Not a single activist would continue to protest if the ruling was overturned. Absolutely no one actually cares about what legal terminology is used beyond lawyers. It’s an effective slogan because it gets to the heart of why the ruling was so ridiculous. To change the slogan “corporations aren’t people” would either reduce accuracy or reduce understandability. It is the correct slogan, no matter whether the legal terminology continues to be useful
A few. But weighed against pretty much all of tort law and contract law, which heavily lean on the similar treatment, those are some pretty tiny edge cases that it's easy to say only apply to natural persons.
Is a corporation really a group of people? Of course people are involved with the corporation, but the corporation doesn't represent its employees, shareholders, management or customers. It's a separate legal entity with complex relationships with its employees, management, shareholders and customers, but with its own rights and responsibilities.
There are organisation forms that are a lot closer to being just a group of people working together, like co-ops and firms maybe. I'm not entirely up to date on all options in English-speaking countries (which will vary of course, but the Dutch Maatschap is probably as close as you can get to a company that's just a group of people.
Co-ops and firms sound like they are a subset of corporation. If they aren't, what makes them different in your mind? Corporations can take many forms and organize around many different principles.
Isn't a corporation incorporated or something like that? With limited liability and everything? Or does it also cover tiny 1 person outfits? I admit English isn't my first language, but I've always understood it to a be a specific form of company.
I believe it would be redundant to explicitly grant freedom of speech to an organization such as a union, as its individual members inherently possess this right.
And you will find similar reasoning in the Citizens United decision with respect to corporations:
> 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. If the antidistortion rationale were to be accepted, however, it would permit Government to ban political speech simply because the speaker is an association that has taken on the corporate form.
> The argument is that the need for abstraction doesn't mean we must reuse an existing concept.
but that's not what is happening, there are two concepts: "natural person" and "legal person". you could call them "foo" and "bar" if you prefer, those are just legal variable names.
Or you could just take the obvious and literally meaning of the phrase "corporations are not people" and not say that everyone who says it is confused. Corporations have different incentives, legal requirements, rights and responsibilities.
Yeah, there's a difference between being a legal entity with limited rights, and being a person with full personhood. Citiziens United ignores that distinction. Just because people have certain rights, does not mean corporations should have the same rights.
It's an artificial legal construct, and its rights and obligations should be entirely subject to whatever society finds beneficial to the real people of that society.
Your slavery argument is an excellent argument. If corporations supposedly have the right to the same free speech as a person, shouldn't they also be free from the bondage of owners, i.e. shareholders?
But their employees collectively do. I know this is not the approach the US court system decided to humor, but there's no way around journalists' rights.
The Constitution doesn't grant rights, it binds the government. The first amendment is a law that disallows the government from taking actions to infringe on any human's inherent rights, be they individuals or in a group.
It's about the dichotomy. If the NY Times has First Amendment rights then Pfizer does.
That annoys people because Pfizer is going to advocate for things some people might not like. But that's the cost of a rule that makes it so the NY Times can advocate for things other people might not like.
I'm curious what you think "Congress shall make no law [...] abridging the freedom of [...] the press" means, in this case. Did you just not know what the actual text is, or ... ?
You see the reading “the press” as meaning some organization of people. You take it for granted that the freedom of the press applies to a business entity like the NYT and also to an individual blogger or any other person creating a publication.
The idea that people can come together to form cooperative groups and can use those to exercise rights through the idea of personhood is such a normal and legally settled idea.
The New York Times (the corporation, as a legal person) has the right to freedom of the press, not just individual humans who work there. This is good, because it means the entire institution is protected. Not only is the government forbidden from arresting the humans for operating the printing press, it’s also forbidden from sanctioning the corporation for hiring humans to operate the press. In other words, freedom of the press applies to corporations (eg. the Times) as well as human persons. I think you and the commenter you responded to both agree on the fundamental claim here, although you might disagree about the semantics of whether “corporate personhood” is a good way of describing this concept.
I think you’re generally correct about the function (“the press” is both Joe/Jill Journalist and the NYT), but I think you’re giving GP’s comment a much better reading than I can.
Can you be more specific? What would it mean for the New York Times (the corporation) not to be protected by the first amendment? The government can sue the New York Times Company for what it prints as long as the government doesn’t prosecute the humans who work there?
The existence of corporate personhood has been settled law in the United States for over a hundred years, and all nine current Supreme Court justices agree with it. There’s controversy on exactly where it applies, with cases defining the boundaries of what rights corporate persons have. I don’t think the example I’m giving here is likely to be contentious.
Ok, there’s the terminology used by the legal community (including all nine justices on the Supreme Court) and then there’s people who dislike the terminology because they saw a misleading speech about the issue on the Daily Show.
A restriction on government (as the First Amendment language is phrased) is not the same thing as an individual right. There are plenty of cases where a restriction is in the law, but only a very limited set of entities has standing to sue to enforce it. You could imagine such a case with regard to the First Amendment if we didn't have the corporate personhood doctrine.
I have no idea what that has to do with my comment or the one I responded to. The freedom of the press is guaranteed by the first amendment. The NYT doesn’t suddenly lose “rights to it” if it’s not seen as a person.
“Corporate personhood” is irrelevant, in this comment chain, and is just a way to take a swipe at an ostensibly left-leaning org in order to turn this into a team sport.
Corporations commonly are persons, legally. Fictive persons, but still treated as persons. It's as if you could get a bank account for Tolkien's Gandalf.
Not correct: A share is a contract issued by the corporation entitling its owner to a share of future profits. So you're not buying a corporation, just engaging in a contract with it.
I hate Citizens United as much as the next guy, but this isn't a good argument against it.
What about non-voting shares? Can it be ownership if you are not included in decisions? I've never really thought about it, but now I believe that what GP was describing is exactly how those are made (or should be made). So at least not entirely wrong (no wait, they would also include a share of assets on dissolution, but that too can be done through a contract with the entity owned by regular shareholders)
> A share is a contract issued by the corporation entitling its owner to a share of future profits. So you're not buying a corporation, just engaging in a contract with it.
A contract of indentured servitude (if you consider it a person), which we consider a form of slavery and therefore illegal.
Wouldn’t the opposing view imply that you are allowed to have political opinions, but only as long as you go at it alone and don’t organize too much with others?
For all I know that might indeed be a better way of running society, but that’s definitely going to take a big constitutional amendment.
The real issue is not so much the speech, but that money is considered speech in the US, so Citizens United apparently gives corporations the right to donate to political campaigns. A lot of people would like to stop that channel for corruption.
Absolutely - the legal abstraction is that corporations are corporations, not people. The article went with a lighter hearted quip but here's my own tired old one:
If corporations are people, then owning shares is unconstitutional as that would be a form of slavery.