Friday, January 22, 2010

Ann Althouse gets it wrong

Ann quotes Kennedy again:

"When word concerning the plot of the movie Mr. Smith Goes to Washington reached the circles of Government, some officials sought, by persuasion, to discourage its distribution.... Under Austin [the case the Court overrules], though, officials could have done more than discourage its distribution—they could have banned the film. After all, it, like Hillary, was speech funded by a corporation that was critical of Members of Congress. Mr. Smith Goes to Washington may be fiction and caricature; but fiction and caricature can be a powerful force."

That movie was funded by a corporation in the business of making movies. The type of business that gains from incorporation is irrelevant, if they produce shoelaces or if they produce movies, they are subject to apriori electioneering rules according to the voluntary contract. The movie business still retains its ability to run it s business under the corporate contract.

A corporation that is in the business of making specific political movies and documentaries still retains due process to conduct that business. They are not uniquely prohibited by electioneering law more than any other corporation. The fact that Citizens United engaged in a business that incurred particular restrictions during election time is no different than the black out time required before a corporation issues public stock. In the later case there is no restriction on other individuals and analysts from comment on the public stock offering, in the former, there is no restriction against a political movie company from selling movies during the election black out period. Both agreements contained voluntary restrictions apriori.

These apriori agreements exist for national security information, insider information management, and many other purposes. They are there specifically because of the right of shareholder anonymity inherent in the limited immunity grant. Everything ties back to the special privileges granted by Congress under a corporate charter.

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