Advantage Libertarians

The Supreme Court ruled today that individuals may not be limited in the number of political candidates to whom they can contribute during an election.  At the same time the justices left in place the maximum donation that can be made to a single candidate, which remains at $2,600.

Chief Justice John G. Roberts Jr., in the controlling opinion in the 5-4 ruling, said that while the government has an interest in preventing corruption of federal officeholders, individuals have political rights that include being able to give to as many candidates as they want, in order to show support.

“Money in politics may at times seem repugnant to some, but so too does much of what the First Amendment vigorously protects,” the chief justice wrote. “If the First Amendment protects flag burning, funeral protests, and Nazi parades — despite the profound offense such spectacles cause — it surely protects political campaign speech despite popular opposition.”

Under the current limit, a donor can’t give more than $123,200 to candidates, parties and political action committees. Of that, just $48,600 can go directly to candidates.

That means if someone wanted to give the maximum donation, he could only contribute to nine candidates.

Chief Justice Roberts said it made no sense that someone couldn’t give to a 10th candidate or more — and said the government didn’t offer a clear line on where corruption would come into play.

Progressives were overwrought already, demonizing the libertarian leaning Koch brothers over their bankrolling of anti-ObamaCare political ads.  Democrats' fight for campaign finance reform has always been about limiting the voices of private citizens in the politics, while inviting massive spending and corruption by activist labor unions.  Fourteen of the top 25 political contributors are unions.

• The top campaign donor of the last 25 years is ActBlue, an online political-action committee dedicated to raising funds for Democrats. ActBlue’s political contributions, which total close to $100 million, are even more impressive when one realizes that it was only launched in 2004. That’s $100 million in ten years.

• Fourteen labor unions were among the top 25 political campaign contributors.

Democrats say that money from wealthy individuals will corrupt the system, but there are two sides to every transaction.  If influence can be bought, there is somebody to sell it.  While Democrats complain about money from shadowy groups they have no second thoughts about where their own money comes from.  Campaign finance limits are for the other side.  Remember when the Obama campaign disabled credit card address verification?  That meant campaign money was potentially untraceable.  If there is corruption it will be from rent seeking Democrats more often than not.

Make no mistake.  This is a victory for libertarians.

The Campaign Finance Decision

Last week was a banner week for libertarians and conservatives.  The upset election of Scott Brown to the Senate seat once held by Ted Kennedy quite effectively put the brakes on Obama's takeover of the health care industry.  That it occurred in true blue Massachusetts was astonishing.  But the bigger story and the one that should have us cheering loudest was the Supreme Court decision in Citizens United v. Federal Election Commission.  This video by the Cato Institute explains what was at stake. 

Needless to say, the decision in favor of Citizens United was was not universally applauded.  In the view of New Jersey pundit John Farmer, Justices were blind to the corrupting influence of cash when they arrived at their decision. His is a very leftist view, couched in terms of redistribution.

Few
things are more fundamental to our notion of political liberty and
equality than freedom of speech. We’re all supposed to enjoy it more or
less equally. Ideally, no one’s supposed to have too much more of it
than anyone else, or it isn’t very equal.

We all know that’s not how it works, however. Some
individuals or groups will, for one reason or another (usually money),
always enjoy more of our constitutional freedoms.

The Constitution, in its majesty, guarantees the pauper
as well as the prince the right to a lawyer. But it’s better than even
money that the prince is going to get Clarence Darrow while the pauper is likely to get the last guy in the class in law school.

That’s why federal courts are there, to smooth out at least some of these inequities.

Is that why the federal courts are there?  I never knew.  Farmer seems not so much opposed to the influence of money as much as the danger that such influence would fall to the wrong people.  He would prefer that party leaders handle all the money. 

These things often have unintended consequences. Ben L. Ginsberg, a long-time lawyer for GOP conservative causes, counsels caution.

"It’s going to be a wild, wild West" in future
campaigns, he warned, "with a lot more voices and the loudest voices
are going to be corporations and unions." In the process, the power of
both parties, Republicans as well as Democrats, could be diminished as
corporations and unions run their own campaigns and give less cash to
either party.

Why run money through the parties — the middle men —
when corporations are free now to spend all they want on their own more
tightly targeted campaigns for issues and candidates? Conceivably, they
could now spend enough to dominate party primaries, denying Democrat
and Republican leaders the power to nominate preferred candidates.

It sounds a vote for the good ol' boy network.  Funneling all the money through party bosses would more likely have the effect of further insulating them from donors and voters.  Let's not overlook the fact that government is itself a special interest.  By allowing corporations to bypass party poobahs we might actually limit the growth of that particular special interest. 

And it's safe to say Farmer's own interests were curbed by this decision.  As a journalist Farmer was accorded special privilege by McCain-Feingold, which would have effectively silenced competing voices during the days immediately before an election.  As an individual Farmer was exempt from McCain-Feingold prohibitions, but unless he is independently wealthy his political speech would reach only a small audience.  However, as a member of his media corporation he was allowed unfettered political speech and the means to deliver it to a wide audience because of his corporation's special status as a member of our free press.  Other corporations were denied this right of speech.  That is, up to now.

A justification of such denial rests on the definition of a "legal person".  A corporation is a legal person, as opposed to a natural person.  According to some opponents of the decision, our founding fathers intended that only a natural person be entitled to first amendment protections, but according to Professor Bainbridge, the Citizens United v. Federal Election Commission decision reaffirmed corporate first amendment rights.

The legislative history of the Fourteenth Amendment suggests that
Congress substituted the word ''person'' for the word ''citizen''
precisely so that the provisions so affected would protect not just
natural persons but also legal persons, such as corporations, from
oppressive legislation. We see this view further confirmed Roscoe
Conkling's recounting of the relevant legislative history in Conkling's
arguments in San Mateo County v. Southern Pac. R.R., 116 U.S. 138
(1885). Conkling had been a member of the Joint Congressional Committee
that drafted the 14th amendment and in Southern Pacific argued
to the Justices that it had been the intent of Congress for the word
"person" to include "legal" persons (corporations) as well as "natural"
persons within the protective scope of the due process and equal
protection clauses of the amendment. The Court accepted Conkling's
argument.

As Larry Ribstein argues, this development made policy sense:


corporations are people – the owners and others the corporation
represents in litigation. These people have speech rights, rights not
to be discriminated against, and so forth. I’ve written on this …:

The Constitutional Conception of the Corporation, 4 Supreme Court
Economic Review 95 (1995); Corporate Political Speech, 49 Wash. &
Lee L. Rev. 109 (1992) and in my book with Henry Butler, The
Constitution and the Corporation (1995) ….

So the African-American owners of this SBA-certified minority-owned
contractor shouldn't lose their civil rights because they chose to do
business in the corporate form. They might be required to sue as a
corporation, as in this case, because that’s a convenient way to handle
litigation, but that doesn’t determine their individual rights.

But courts also should recognize that, by the same principle, people
shouldn't lose their speech rights just because they exercise these
rights though the corporation in which they have invested.

One practical effect of the decision may be to afford corporations some protection from bullying by elected officials.  As the Cato video explains, the power that needs to be curbed is government power, not the power of its people whether they are natural persons or legal persons.

Hypocrisy of the Democrats

In today's New York Post former Democratic Senator from Nebraska, Bob Kerrey, offers crocodile tears over the hypocrisy of Democrats on the issue of campaign finance reform.

ON the question of public funding of presidential campaigns, we Democrats who strongly support Sen. Barack Obama's candidacy and who previously supported limits on campaign spending and who haven't objected to Obama's opting out of the presidential funding system face an awkward fact: Either we are hypocrites, or we were wrong to support such limitations in the first place.

The next time we speak of the virtue of level playing fields or state our strong belief that democracy can't survive in the modern age unless big money is taken out of campaigns, we'll be counting on our audience's forgetting our silence this year, when the free market was flowing in our direction.

A hypocrite is a person who puts on a false appearance of virtue – who acts in contradiction to his or her stated beliefs or feelings. And that, it seems to me, is what we're doing now.

When it comes to hypocrisy, it might be quicker to point out where Democrats are not hypocrites… 

There.  I think I've covered all of them. 

Senator Kerrey closes,

So maybe I was simply wrong about placing limits on spending and providing public monies in exchange for adhering to these limits. Of course, it's possible that I'm making a virtue out of a necessity – since my candidate is now winning in part because, by opting out of the system, he has more money to spend.

In the short term, I'm sad to report that hypocrite is a more accurate label. In the long term, perhaps this will be the moment that causes me to change my views. It certainly feels better than remaining a hypocrite forever.

I doubt that it will take long for Senator Kerrey to come around.  Democratic purposes in supporting campaign finance reform were to counter a fund raising advantage traditionally held by Republicans.  Now that this election has demonstrated that such advantages can be overcome, I'm sure the Senator will rediscover the advantages of free speech.