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Unexpected things that are people

bengoldhaber.substack.com

231–240 of 312 posts

Re: Unexpected things that are people

#231

Earlier quoted context omitted.

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…

I truly wish more people understood this.

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 ", 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.

Re: Unexpected things that are people

#232
post #157

Earlier quoted context omitted.

> 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.

And if corporations aren’t people, then the New York Times has no right to the First Amendment.

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.

Re: Unexpected things that are people

#233
post #187

Earlier quoted context omitted.

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 ... ?

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…

Absolutely insane take.

Re: Unexpected things that are people

#234

Earlier quoted context omitted.

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.

But then why does a corporation need freedom of speech etc?

Re: Unexpected things that are people

#235

Earlier quoted context omitted.

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…

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

Re: Unexpected things that are people

#236
post #227

Earlier quoted context omitted.

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.

> 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.

[deleted]

Re: Unexpected things that are people

#237

Earlier quoted context omitted.

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.

But then why does a corporation need freedom of speech etc?

Because a corporation is a group of people, and a group of people don't lose their freedom of speech just because they joined a collective.

And corporations can stand for things. They can have missions and use funds to effect speech in support of causes that align with their beliefs.

Re: Unexpected things that are people

#238
post #205

Earlier quoted context omitted.

> while a corporation is easy to fine, it's hard to put in prison... IANAL, but I believe in at least some scenarios, officer(s) of U.S. corporations can go to jail if they are responsible for the directing the corporation to commit certain offending actions (despite not physically doing it themselves). To be clear, I'm not just talking about personal liability for fraud, insider trading, etc they may have committed…

Another pertinent example: (in the US) corporate officers are personally liable unpaid wages and can serve time for willfully neglecting to pay their workers.

In Australia, if a company fails to pay its Goods and Services Tax, or its withholding payments for its employees' income tax, or Superannuation Guarantee (retirement fund contributions), each and every director is personally liable - unless they can prove (and the onus of proof is on them, not the Tax Office) that they had a reasonable excuse for why they weren't active in managing the company, or took all reasonable steps to get the company to either pay the debt or go into bankruptcy the lawful way.

Importantly, there is no "wilful" requirement and it applies to all directors, not just those who actively participated in misconduct. If you weren't involved, you have to prove that you actively tried to stop it, or that you weren't managing the company for a specific reason such as being sick. You were the director who mostly turned up to board meetings to help them meet quorum, you trusted the other directors on the board had things under control and you were completely unaware of the debts? Too bad, liable. You hired external advisers, delegated to them, and they didn't do it? Too bad! You decided to wash your hands of the whole thing, and resigned from the board, but didn't actively try to rectify the situation first? Yep, they're still coming for you.

(I believe the criminal convictions with prison time only really kick in for those who actively participated in tax fraud or who refuse to pay their director penalties.)

Re: Unexpected things that are people

#239

Earlier quoted context omitted.

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…

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…

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.

Re: Unexpected things that are people

#240

Earlier quoted context omitted.

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…

Absolutely insane take.

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.

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