Welcometo“FixingOurBrokenDemocracy.”Thispresentationisabouttheneedfora

constitutionalamendmenttooverturntheSupremeCourtdecisionknownas“CitizensUnited,”whichendowedcorporationswithconstitutionalrightsintendedtoprotectlivingindividuals,andopenedthefloodgatestothecorruptinginfluenceofunlimitedpolitical

spending.

MynameisPaulLauenstein.I’mnotapolitician.I’mnotaprofessionalactivist.I’mjusta

retiredprintshopownerandaconcernedcitizen.

LikemanyAmericans,Iseeapoliticalsystemthatcaterstopowerfulspecialinterests.

That’swhyIvolunteermytimetohelpbuildthebroadmovementweneedifwewanta

democracythatservestheinterestsofallAmericans.

1

TheEconomist,awell-respectedweekly,recentlydowngradedtheUnitedStatesfroma

“fulldemocracy”(countriesshownindarkgreen)toa“flaweddemocracy”(countries

showninlightgreen).

TheUnitedStatesshouldnolongerbeconsideredabeaconofdemocracyfortherestof

theworld.

2

Inastudyofalmost1,800policyinitiatives,politicalscientistsfromPrincetonand

Northwesternfoundthatthepreferencesofaveragecitizenshavealmostnoeffecton

governmentpolicies.However,theyfoundthatthepreferencesofeconomicelitesmatter

alot.TheyconcludedthatAmericaismoreofanoligarchy–whereasmallwealthyelite

rules–thanademocracy,wherethepeoplerule.

Let’stakealookathowwegotintothissituation,andwhatwecandotofixourbroken

democracy.

3

WhenAbrahamLincolngavehisfamousGettysburgaddress,thememoryoftheAmerican

Revolutionwasstillfreshinthemindsofhisgeneration.Theyrememberedthesacrificesof

theirforefathersinoverthrowingthetyrannyofKingGeorge.Theyalsorememberedthe

economicoppressionoftheEastIndiaCompany,aglobalcorporationthatmonopolized

tradeinthecolonies,andhowthecoloniststhrewtheteaintoBostonHarbortoprotest

thatoppression.

Standingontheblood-soakedbattlefieldatGettysburg,Lincolnutteredtheseimmortal

words,“…weherehighlyresolve…thatgovernmentofthepeople,bythepeople,forthe

people,shallnotperishfromtheearth.”

4

Lincoln'sgenerationfoughtabloodyCivilWartoholdthenationtogether,hopingthat

governmentof,byandforthepeoplewouldprevail.

However,withinafewdecades,theRobberBaronsoftheGildedAge–bigindustrialists

suchasRockefeller,VanderbiltandJ.P.Morgan–weremakingamockeryofthatvision.

TheGildedAgebroughtextremesofbothgreatwealthandgrindingpoverty,astheRobber

Baronsmadehugefortunes,takingadvantageofcheaplaboratatimewhenworkershad

almostnorights.Itwasalsoatimeofcorruptioningovernment.Lobbyistsstalkedthe

hallsofCongresswithmoneyandgifts,tobribepoliticiansintowritingthelegislationthat

corporationswanted.

Soundfamiliar?

Corporatetycoonswantedtogettheirbusinessesoutfromundergovernmentcontrol.Led

bytheboomingrailroadindustry,stepbystepthroughthelate1800s,theymanipulated

andbribedstatelegislaturesintoliftingtherestrictionswrittenintocorporatecharters,

andbynowtheyhadtheireyesonthebiggestprize:theconstitutionalrightsofnatural

persons.Theyknewthatcorporationscouldmanipulateconstitutionalrightstoavoid

compliancewithlawstheydidn'tlike,apracticethathasbeendubbedthe"corporate

veto."

Fordecades,lawyersbroughtcaseaftercasetotheSupremeCourtdemanding

5

Theystakedtheirclaimonthe14thAmendmentof1868,whichaffirmedthatnewlyfreed

slaveswerecitizens.The14thAmendmentguaranteedall“persons”equalprotectionofthe

laws.

6

Upuntilthistime,ithadbeenunderstoodthatacorporationwasaseparatekindof

person,anartificialperson.Whatdoesthatmean?Well,let'ssayagroupofpeoplewant

togointobusinesstogether.Theyfilewiththestateforacharter.Oncethecharteris

granted,thelawtreatsthebusinessasifitwereone"person,"sothatitcandothingslike

enteringintocontractsandfilinglawsuits.Thisgivesthecorporationalimitedkindoflegal

personhood.

Andthat’sfine.Corporationsneedtobeabletofunctionthatway.

(click)Butthat’sreallydifferentfromsayingthattheyhavealltherightsofpeopleunder

theConstitution.Thesearenaturalrightsthatareinherentlypartofwhoweareashuman

beings.Thereisnothingnaturalorinherentaboutacorporation.It’salegalarrangement

createdbyanactofstatelaw.

7

Sotheaimofthe14thAmendmentwastoensurethatflesh-and-bloodpersonswhohad

beenabusedforsolongasslaveshadequalprotectionofthelaws.

Butwhatactuallyhappened?

Between1890and1910theSupremeCourtheard307casesregardingthe14th

Amendment.Mostoftheminvolvedcorporations,notAfricanAmericans.

Corporationshadtheresourcestomanipulatethelegalsystemtotheiradvantage,while

formerslavesdidnot.

8

TheGildedAgedidnotlastforever!

Relyingonconstitutionalrightssuchasfreedomofspeech,freedomofthepress,and

freedomofassembly,peoplefoughtbackingreatmovementsforchange.

9

ThesemovementsincludedthePopulistsinthe1890’s,ledbyWilliamJenningsBryan,who

demandedthedirectelectionofsenators,citizenballotinitiatives,andotherexperiments

indirectdemocracy.

10

ThencametheProgressives,ledbytrust-busterTeddyRoosevelt.

Hesaid,“Corporateexpendituresforpoliticalpurposeshavesuppliedoneoftheprincipalsourcesofcorruptioninourpoliticalaffairs.”

11

In1920,afterdecadesofstruggle,womenfinallygottherighttovotewiththepassageof

the19thamendment.

Depression-erareformssuchassocialsecurity,unemploymentinsurance,FDICandGlass-

SteagallstabilizedtheeconomyandledtoagoldenerainAmericaafterWorldWarII.For

decades,prosperitywaswidelysharedasthemiddleclassgrew.

12

Inthe1950sthroughthe1970stherewereotherremarkablepeople’smovements,suchas

theCivilRightsMovement,

13

theanti-warmovement,

14

andtheenvironmentalmovement.

OnEarthDay,20millionAmericansfromcoasttocoastdemonstratedinthestreetsto

protestpollution,oilspills,andotherharmscausedbycorporations.

EarthDaywonthesupportofRepublicans,Democrats,andallkindsofAmericans.Itledto

thecreationoftheEnvironmentalProtectionAgency,thepassageoftheCleanAirand

CleanWaterActsandmanyotherlawstoprotectoursharedenvironment.

Lincoln'svisionofgovernmentof,byandforthepeoplewasbecomingareality.

However,corporateAmericawatchedthesedevelopmentswithgrowingalarm,and

embarkedonacounterstrategy.

15

Thistwo-minuteclipfromHeist:WhoStoletheAmericanDreamshowswhatthat

corporatecounterstrategywas.

16

ThePowellMemoandChamberofCommercestrategychangedoursocietydramatically.

LewisPowellwasatobaccoindustrylawyerbeforeNixonappointedhimtotheSupreme

Court.TherobeheworeonhisfirstdayasaSupremeCourtJusticewasagiftfromthe

PhillipMorrisCompany.

WhilehewasontheSupremeCourt,Powellhelpeddecideanumberofcasesthat

expandedthepowerofcorporations.

17

InBuckleyv.Valeo,thecourtruledthatgovernmentcan’tlimittheamountofmoneythat

candidatesspendonelections.Thisisthedecisionthatcreatedthenotionthat(click)moneyequalsspeech!

(click)InFirstNationalBankvBellotti,theCourtruledthatlimitingcorporateexpenditures

toinfluenceballotinitiativesconstitutesaviolationoftheirFirstAmendmentspeechrights.

Decisionsliketheseledtomoremoneyinelectionsandmorecorporateinfluence.

18

Corporationshavebecomesosuccessfulatwinningconstitutionalrightsthattheycan

exercisewhatauthorJeffClementscallsthe“CorporateVeto.”Thismeanscorporations

canusetheirnewfoundconstitutionalrightsincourttoavoidcompliancewithlawsthey

don'tlike.

19

Inhisbook,“CorporationsAreNotPeople””Clementsdescribeshowcorporationsuse

constitutionalrightstocircumventlawsprotectingourhealth,safety,andenvironment.

Andtheyhavedonesohundredsoftimes!

Onesuch“corporateveto”happenedrighthereinMassachusetts.

20

RecognizeJoeCamel?Themascotcreatedtomarketcigarettestokids?

In1998Massachusettspassedalawtoprotectchildrenbybanningcigaretteadvertising

within1,000feetofschoolsandplaygrounds.TheSupremeCourtstruckdownthelaw,

sayingitviolatedtheFirstAmendmentspeechrightsoftobaccocompanies.

Thiscaseraisesthequestion:whatisthemeaningoffreedom?Doesitmeancorporations

arefreetodobusinessregardlessoftheconsequencesforsociety?OrdoesitmeanWethe

Peoplearefreetoprotectourchildren,regardlessoftheconsequencesforcorporate

profits?

21

WithitsinfamousCitizensUniteddecisionof2010,theSupremeCourtstruckdownsome

ofthefewremainingcampaignfinancerestrictions.

Basedonthedoctrinethatartificialentitieshaveconstitutionalrights,andmoneyisaform

ofFirstAmendmentspeech,theSupremeCourtopenedthefloodgatestomoneyin

politics,andcorporatedominationofourdemocracy.

22

Fourjusticesdissented.JusticeJohnPaulStevenssaid,“Corporationshelpstructureand

facilitatetheactivitiesofhumanbeings,tobesure,andtheir‘personhood’oftenservesas

ausefullegalfiction.Buttheyarenotthemselvesmembersof‘WethePeople’bywhom

andforwhomourConstitutionwasestablished.”

InthewakeoftheCitizensUniteddecision,thingshaveonlygottenworse.

23

In2014,theSupremeCourtissuedanother5-4decisioninthecaseofMcCutcheonv.FECthatstruckdowntheFEC’slimitonhowmuchanindividualmaycontributeduringatwo-

yearelectioncycle.McCutcheon’sattorneysarguedthatcampaigncontributionsarea

formoffreespeech.

Asaresult,billionairessuchasSeanMcCutcheonmaynowcontributemillions.

24

OutsidespendingonelectionshasskyrocketedsincetheCitizensUniteddecisionin2010.

Corporateexecutivesfocusonprofit.Theybuypoliticalinfluencebecauseitoffersahigh

returnoninvestment–usuallyattheexpenseoftherestofus.Inessence,itamountsto

legalizedbribery.

25

SenatorJohnMcCainsaid,“MoneydoesbuyaccessinWashington,andaccessincreases

influencethatoftenresultsinbenefitingthefewattheexpenseofthemany.”

Heco-authoredtheBipartisanCampaignReformAct,whichlimitedmoneyinpolitics.

ThatlawwaseffectivelyinvalidatedbytheCitizensUniteddecision.

26

Remember,thisnationexistsbecausepeoplestoodupagainstanoverwhelming

concentrationofpower.TheykickedtheEastIndiaCompanyoutofthiscontinententirely!

Anditdidn’tendthere.Generationaftergeneration,people’smovementshavefoughtto

realizetheidealsofdemocracy.

BigchangecanbeachievedwhenWeThePeopledecidewe’vehadenough!

27

ManypeoplethoughtHillaryClintonwouldwintheelectionandappointnewSupreme

CourtjusticeswhowouldoverturnCitizensUnited.However,theelectionresultsprovedthataconstitutionalamendmentistheonlylastingwaytooverturntheSupremeCourt

rulingsattherootoftheproblem.

UntilnoweverygenerationofAmericanshasamendedtheConstitution.Nowit’sourturn.

RestoringtheauthorityofWethePeopleoverpowerfulspecialinterestsisthegreat

challengeofourgeneration.

Wemustwinanamendmentthatachievestwocoregoals:

First,therightsprotectedbytheConstitutionaretherightsofnaturalpersonsonly(i.e.

artificialentitiessuchascorporationsdonothaveconstitutionalrights).

Thisisreferredtobytheslogan“CorporationsarenotPeople.”

Second,thespendingofmoneytoinfluenceelectionsisnot

protectedfreespeechundertheFirstAmendment,andthereforeCongressandthestates

mayregulateit.

Thisisreferredtobytheslogan“MoneyisnotSpeech.”

Oncewewinsuchanamendment,wecanpasscampaignlawsthatcannotbeinvalidated

bytheSupremeCourt!Thenwecanelectrepresentativesaccountabletoordinarypeople.

Withdemocracyworkingbetter,wecantakeonsolvingthemanycrisesfacingourcountry!

Thatisaplan!

29

TherearetwowaystoproposeanamendmenttotheConstitution–a2/3voteby

Congress,oraconventioncalledby2/3ofthestates.Theproposedamendmentmustthen

beratifiedbyatleast3/4ofthestatesbeforebecomingpartoftheConstitution.

30

Massachusettsisoneof19statesandover700citiesandtowns,includingBoston,New

York,LosAngeles,ChicagoandPhiladelphia,thathaveformallycalledonCongressto

proposeaconstitutionalamendmenttooverturnCitizensUnited.

However,despitehugebipartisandemandfordemocraticreform,Congresshasstillnot

proposedtheamendmentweneed,andtheydonotappearlikelytodosoanytimesoon.

31

ThisJanuarymarkedthe8thanniversaryoftheCitizensUniteddecision.

WithCongressseeminglyparalyzed,it'stimeforthestatestocallforanamendment-

proposingconvention.Sofarfivestateshavedoneso.

Massachusetts,thecradleofAmericandemocracy,shouldjointhem!

If34statestakethisaction,aconventionofdelegatesfromthestatescanproposean

amendmentwithoutwaitingforCongress.

Althoughtherehasneverbeenanamendment-proposingconventioninU.S.history,this

tactichassucceededseveraltimesinpressuringCongresstopre-emptivelypropose

neededamendments.

32

WethePeopleMassachusettsisworkingtopasstheWethePeopleAct,andhave

Massachusettsjointheotherstatesthathavealreadycalledforanamendment

convention.

Sofar85statelegislatorshaveco-sponsoredourbill,butweneedevenmoresupportto

getthelegislaturetovoteonit.

Somelegislatorssaytheyarenothearingfromtheirconstituentsonthisissue.

Andthat'swhatitcomesdownto.It’suptous.Are“WethePeople”readytodowhatit

takestorealizeLincoln'svisionofgovernmentof,byandforthepeople?

33

Thecaptionofthiscartoonreads,“…withlibertyandjusticeforsale.”

Whatkindofexampleshallwesetforourchildren?Whatkindofworldshallweleavefor

them?

34