Corporate Personhood & Limited Liability

• Government is the only entity with the power to create rules and enforce them on individuals and organizations
• During the 19th century in the USA, individuals began lobbying the government to change rules for their own benefit
• Stockholders and business partners were liable for business debt beyond the value of their shares
• Limited Liability was enjoyed by business owners or shareholders in the USA by 1860
• Limited Liability was a general rule in Canada after 1862

Corporate Personhood

• In 1889, the Supreme Court ruled a corporation as a legal person entitled to rights and obligations under the law
• This eliminates prohibitions for corporation political campaign donations and lobbying based on free speech rights
• Corporations are not obligated to open their books as a condition of getting legislative charter due to people's rights to privacy
• Higher license fees for big corporations in Florida were eliminated on the grounds of non-discrimination
• A corporation is separate from its associated human beings but has some of the legal rights and responsibilities of natural persons
• The Anglo-Canadian approach expanded corporate personality incrementally for socio-economic objectives, enhancing corporations as investment vehicles
• The U.S. approach accepted corporate personhood without argument, granting U.S. corporations all the rights and privileges of persons
• Rules of Construction state that "person" and "whoever" include corporations, companies, associations, firms, partnerships, societies, and joint stock companies, as well as individuals

Competition to Monopoly

• In 1882, the Standard Oil Trust was initiated by John Rockefeller, arising from competition to monopoly
• Oil companies joined the trust by selling their stock to a board of trustees, with 41 firms under a board of 9 trustees headed by Rockefeller
• The monopoly replaced competition with command, benefiting trust members but hurting consumers

Democratic Government

• Democratic government is a process where people collectively provide for their own welfare
• In a capitalist economy, the government brings together the interests of businesses and the public by:
• Providing a safe environment for business and consumers
• Ruling against discrimination
• Promoting general welfare through social security, pension plans, medical care, etc.

Transnationals

• Transnational Corporations (TNC) or Multinational Corporations (MNC) are incorporated into local markets
• They have affiliates in different nations
• An affiliate is a corporation in which the parent corporation holds more than 50% of the shares
• They increase global profits based on wages, inputs, policies, taxes, etc., across several locations
• In the USA, transnationals appeared after World War II with the development of international communication technology
• Corporations initially appeared to serve the public interest, but laws changed to favor them

Railroads in the 1800s

• In the USA, states granted land to railroad building companies as part of a subsidy package to complete railway lines
• Government intervention benefited private business and public interest with railroad companies being the winners
• Government spending created public effects in income redistribution, with extreme inequality in the USA due to lack of income and inheritance taxes
• There was lobbying and bribes to the government to support capital owner interests
• Capital owners have powerful incentives to influence government policies for lucrative gains

Voter Turnout

• Civic engagement through participation in the political system measures social cohesion
• Low turnout may be due to disillusionment, indifference, or satisfaction
• High turnout may reflect compulsory voting laws or coercion
• High voter turnout is preferable as it means the government reflects the interests of a larger population share
• Low voter turnout implies that the democratic system may not reflect the interests of all citizens
• Voter turnout is lowest among youth, those with less education, and those in lower income brackets

Democracy in the 20th Century and Labor Rights

• 1872: The fight for a shorter work-week
• The birth of Unemployment Insurance
• In 1940, Canada was the last major Western country to adopt an unemployment insurance system
• Maternity & parental benefits
• Paid maternity leave benefits have existed since 1971 in Canada