-Caveat Lector-

http://www.commonsentience.com/populism.html
Power to the Persons
One Market Under God: Extreme Capitalism, Market Populism, and the End of
Economic Democracy

 by Thomas Frank

 (New York: Doubleday, 2000)


Book Review by Marc Bedner, editor of Common Sentience


The conditions which surround us best justify our co-operation; we meet in
the midst of a nation brought to the verge of moral, political and material
ruin. Corruption dominates the ballot box, the legislatures, the Congress,
and touches even the ermine of the bench. The people are demoralized; most of
the states have been compelled to isolate the voters at the polling places to
prevent universal intimidation or bribery. The newspapers are largely
subsidized or muzzled; public opinion silenced.

These words opened the Populist Party Platform for the Presidential Election
of 1892. The Populist Party was formed in an attempt to reverse the
increasing political power of corporations. Six years before, in Santa Clara
County v. Southern Pacific Railroad, the U.S. Supreme Court granted
corporations legal rights as persons:

One of the points made and discussed at length in the brief of counsel for
defendants in error was that "Corporations are persons within the meaning of
the Fourteenth Amendment to the Constitution of the United States." Before
argument MR. CHIEF JUSTICE WAITE said: 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.

This legal situation has never changed, as U.S. courts continue to grant to
corporations rights which are denied to living nonhuman (and some human)
beings. This is not true in all parts of the world, of course. The European
Union, at least in principle, recognizes a need "to ensure improved
protection and respect for the welfare of animals as sentient beings." The
Fourteenth Amendment to the U.S. Consitution, passed in the aftermath of the
Civil War to assure rights to former slaves, was recently cited by the
Supreme Court to prevent challenges to the election of George W. Bush as
President.

One of the planks of the Populist platform was a graduated income tax, which
the Supreme Court had ruled unconstitutional. In order to channel popular
support for populist ideas into the established political parties,
progressive Democrats and Republicans passed a consitutional amendment
allowing the tax. Now that populist ideas are long forgotten, the
Republicans, with little opposition from the Democrats, are moving to repeal
the tax. Adopting populist rhetoric to promote its opposite, President Bush
and his supporters claim to be "returning to the People" money which would
otherwise be spent by "government bureaucrats."

Corporations now claim not only the rights of persons, but also the right to
speak in the name of the People. As Thomas Frank points out in his book One
Market Under God: Extreme Capitalism, Market Populism, and the End of
Economic Democracy, populism has been turned into its opposite. Populism is
no longer a political campaign to restrain corporations, but a marketing
campaign to increase corporate power. Frank calls this phenomenon "market
populism," which he describes as follows:

Market populism was just the thing for a social order requiring constant
doses of legitimacy. Taking as a fact the notion that business gives people
what they want, market populism proceeds to build all manner of populist
fantasies. Of businessmen as public servants; of industrial and cultural
production as a simple reflection of popular desire, of the box office as a
voting booth. By consuming the fruits of industry we the people are endorsing
the industrial system, voting for it in a plebiscite far more democratic than
a mere election.

Market populists argue that a democratic society should abolish government
regulations, allowing corporations, in the name of the consumers, to do
whatever they wish. When logging companies cut forests and petrochemical
companies produce greenhouse gases, they argue, it is in response to consumer
demand. Any attempt to control this activity is the name of the common good
is dismissed as elitism.

So-called New Economy entrepreneurs are particularly noteworthy for their use
of libertarian and populist rhetoric to justify their practices. But
increasingly it is also Old Economy capitalists, with the help of the
politicians they have purchased, who are using the mantle of democracy to
repeal the gains which the common people have made over the last century.
-----
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