Table of Contents
Title: “Economy Inequality in the United States”
Introduction
Analysis:
 Definition of Corporate Personhood
 Historical Background
 Impact of Corporations
Discussion:
 Situation with respect to the gap between the rich
and the poor
 How can this issue be reversed?
Personal Reflection:
Conclusion
References
Economy inequality in the United States
Introduction
We need to understand how complicated and fundamentally flawed Capitalism truly is. We
need to expose the heart of economic problems, something that is been getting worse and worse for
over 30 years. The rich are getting richer, the middle class is disintegrating and the poor are
becoming more disenfranchised. Middle class and below poverty line citizens live in constant fear
because of the decisions of the superclass, one business transaction can impact their source of
income. The statistics of today’s current economy is so appalling. The fact that the US is the richest
economy but yet the country with the most economy inequality is so saddening. The largest and most
powerful transnational corporations dominate the lives of most of the world’s citizens, their CEOs are
unapproachable and live lives of nearly unimaginable wealth and luxury paying meager taxes; they
value growth and profit no matter what the cost, and this has become disruptive for life. "Trickle
down economics" doesn't work...something we all know. “Workers do not have power if they do not
have a voice." Unfortunately, the choices are mainly politically made and to start to see a change, the
big money needs to be taken out of politics. This would force the government and the Elite superclass
to not focus on the money they have but the economic inequality that everyone is experiencing. U.S.
economy is gaining economic growth, but those changes are not evolving because the distributing of
wealth is not equally.
Definition of Corporate Personhood
It is the legal concept that a corporation may be recognized as an individual in the eyes of the
law. This doctrine forms the basis for legal recognition that corporations, as groups of people, may
hold and exercise certain rights under the common law and the U.S. Constitution. For example,
corporations may contract with other parties and sue or be sued in court in the same way as natural
persons or unincorporated associations of persons. The doctrine does not hold that corporations are
flesh and blood "people" apart from their shareholders, officers, and directors, nor does it grant to
corporations all of the rights of citizens.
Historical background
History proof the fact that Corporation have been less liable than any physical person, it
started over 500 years ago when “America was discover by Christopher Columbus” when in reality,
nothing new was discovered, America already existed and functioned fine, but through colonization,
the Monarchs fulfilled their dreams of getting richer without working; and the Elite-wealthy class
were getting richer without getting in trouble and living forever with corporate charter. During the
colonial era, British corporation were chartered by the crown to do business in North America, they
were often granted monopolies. The degree of permissible government interference in corporate
affairs was controversial from the earliest days of the nation. As the 19th century matured,
manufacturing in the U.S. became more complex as the Industrial Revolution generated new
inventions and business processes. The Civil war accelerated the growth of manufacturing and the
power of the men who owned the large corporations. Businessmen such as Mark Hanna, sugar trust
magnate Henry O. Havemeyer, banker J.P. Morgan, steel makers Charles M. Schwab and Andrew
Carnegie, and railroad owners Cornelius Vanderbilt created corporations which influenced
legislation at the local, state, and federal levels as they build businesses that spanned multiple states
and communities. After the adoption of the 14 Amendment in 1868, there was some question as to
whether the Amendment applied to others than freed slaves. The beginning of this country is not a
democracy, is being a corporation. The American Revolution was about getting rid of the King of
Great Britain (taxation without representation). Richest people gathered together in secret to set up
trades, limits and how to get rich at expenses of poor people, slaves and indigenous. The Constitution
of the United States was the first NAFTA and the 10 Amendments were the result of big social
movements against political tyranny like the following examples:
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(1886) Santa Clara County v. Southern Pacific Railroad
(1906) Hale v. Henkel
(1919) Dodge v. Ford Motor Co.
(1922) Pensylvannia Coal Co. v. Mahon
(1933) Louis K. Liggett Co. V. Lee
(1976) Bucley v. Valeo
(1977) First National Bank of Boston V. Bellotti
(1996) International Dairy Foods Association v. Amestoy
(2010) Citizens United v. Federal Election Commission
(2013) Notice of right to Unionize Barred and on the same year, McCutcheon v. FEC.
In all this cases, the Supreme Court has favored the “corporate personhood” in law. Justices since
have struck down hundreds of local, state and federal laws enacted to protect people from corporate
harm based on this illegitimate premise. Armed with “rights”, corporations control over jobs, natural
assets and politicians, even judges.
Impact of Corporations in the United States
As a matter of interpretation of the word "person" in the 14 Amendment, U.S. courts have
extended certain constitutional protections to corporations. Opponents of corporate personhood
seek to amend the U.S. Constitution to limit these rights to those provided by state law and state
constitutions.
The basis for allowing corporations to assert protection under the U.S. Constitution is that they are
organizations of people, and the people should not be deprived of their constitutional rights when
they act collectively. In this view, treating corporations as "persons" is a convenient legal fiction
which allows corporations to sue and to be sued, provides a single entity for easier taxation and
regulation, simplifies complex transactions which would otherwise involve, in the case of large
corporations, thousands of people protects the individual rights of the shareholders as well as the
right of association.
On February 12, 2014 we had the opportunity to listen to a guest speaker in our Class Social Welfare
Policy, a community organizer and activist from Move to Amend, a coalition of individuals committed
to social and economic Justice, and to end corporate rule and building a democracy that is genuinely
accountable to the people, not corporate interests. She started her presentation saying that we can
live in an economic justice country, legalizing the practice of democracy and taking action on giving
issues, pushing policies for regular people because the world is not OK the way is set up, even if
parents tell us so, or in my case, as an immigrant what I have learn through textbooks and mass
media. “Move to Amend is a coalition of organizations and individuals, who share common values”
she said, “we work together to end corporate personhood and demand real democracy”.
A corporation is more superhuman than human. It can function beyond the natural limits of age that
govern humans, and as such can produce dividends for its investors, whose stock certificates can be
willed and passed down as part of their estates. A corporation doesn't die with its originator; it can
live indefinitely (so long as it's profitable). Nor does a corporation need the same things that an
actual person does. Corporations don't require food or water, and they can't feel pain
The laws that govern people take our human weaknesses into account. For example, our prison
system is designed to incarcerate the human body. You can't imprison a corporation, though. So
granting human treatment to nonhuman corporations is tricky: It's like breathing life into a
superhuman that can't feel pain and, after setting him free, hoping for the best.
Situation with respect to gap between the rich and the poor in the United States
According to Robert Reich, a best-selling author of 13 books, Chancellor’s Professor of Public
Policy at UC Berkeley, former Secretary of Labor in the Clinton administration, and a foremost expert
on economics, 42% of children born into poverty will remain in poverty. He wanted people to
understand the challenges of the US economy and through the documentary: Inequality for all, he is
able to grab the attention of the audience with the intention to move them to action. Reich is very
well spoken, he points to major developments as globalization, the technological revolution and
deregulation as some of the main reasons for the widening gap of inequality. He is clear in explaining
how American business has increasingly relied on overseas production, he asks his students at
University of Berkeley in California, some of whom are forced to sit in the aisles of a concert-size
auditorium, to guess which country benefits most monetarily from manufacturing the iPhone. Turns
out it is Japan (34%) and Germany (17%), whose work forces possess the skills to provide the stateof-the-art tech components. China, at 3.6% only puts those parts together. Meanwhile, the US gets an
only 6% of the cut. Another main point is that middle class provides 70% of the spending in the US
and they are the real job creators, but only if they are given salaries that allow them to be avid
consumers creating demand, jobs and more tax revenue. The one thing that stood out to me the most
is the CEO of a pillow company, Nick Hanauer. He was very honest about his earnings: 84.5 million
dollars in one year, and the fact that he knew there was a huge income gap between what he earns
and his workers. He even admits that the products his workers make are luxury items and they can't
afford to buy them. I felt like he was very straightforward and even admitted that his tax bracket was
13% or something similar, and he knew his workers paid 35% or more.
Besides the protection of the corporation, there are other factors contributing to the gap in the
economy such as different education levels among citizens and cost of living. Another big reason that
contributes to the income inequality between rich and poor is technological advances. Technological
advance hurt the low-income class greatly but at the same time is a big gain to the higher class. Many
of today's technological advances have eliminated wide range of jobs in the industry. Today's
technology is growing rapidly through out the work force. A rapid change in technology means that
there are machines that can replace human's jobs. For most low-income workers this means
unemployment. Since most of these workers had little or no education, it is very hard for them to
keep up with the technological advances of today's world. Therefore these workers are then either
lay off or are replaced by machines that can do their jobs at a faster rate and a cheaper price. For
example, many years ago banks nationwide needed tellers to help customers with deposits and
withdrawals. A teller is considered to be a low-income to middle class job by society, and it was a
very popular position because all banks required it. It was popular for a while until ATM machines
were introduced. ATM machines basically do the same thing as a teller does such as allowing one to
makes deposits, withdraws, transfers, all at a faster rate and even more convenient for some people.
How this issue can be reverse
Move to Amend believe that corporation are not persons and possess only the privileges
citizens and their elected representatives willfully grant them. Their Amendment will reverse the
Court’s invention of “corporate personhood” and limit corporations to their proper role: doing
business and create jobs, not just wealth. The way Move to Amend works is talking to groups about
how they are affected and what new laws and alternatives as well as moves are necessary to do in
order to have a better country. They offer discussions about microagression. Population has been fed
and entertained by “bread and circus” so they won’t get united to make changes. The term is been
used by historians to describe a superficial way of appeasement or the creation of public approval
not through exemplary public service but through diversion and distraction. We complain about
corruption in other countries but we legalized it in America. In the other hand, there is hope, because
social movements were used to enforce laws in a just way like history proves it in:
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(1791) Bill of Rights
(1865) The 13th Amendment were slavery was abolished
(1866) Civil Rights Acts were emancipated African-American by saying that people born in
the USA regardless race is a citizen.
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(1868) The14th Amendment. African American were declared citizens entitled to equal
protection of the laws, essentially banning discrimination.
(1870) 15th Amendment. African American males get the right to vote.
(1973) 17th Amendment. U.S. Senate is now selected by the people instead by state
governments.
(1920) 19th Amendment. Women finally get the vote after 75 years of struggle.
(1954) Brown v. Board of Education of Topeka.
(1964) 24th Amendment. Abolition of poll taxes, which were used to keep blacks and others
from voting in some states.
(1971) 26th Amendment. Right to vote changed from 21 to 18 years of age.
(1973) Roe v. Wade
(20--) “we the people…” 28th Amendment … ?
Conclusion
I am glad I am able to work in this research because it answers some questions that I always
have about rich people getting richer and middle class families having to work extra jobs in order to
cover basic needs; I always considered the distribution of wealth unequally, some people considered
me a "socialist" even though I am not, I am not even affiliated to any political party, for me, LABELS
ARE IRRELEVAN. I believe that Capitalism brings competition, gives variety of services and lower
prices but it is interesting to learn that big companies are designed to make profits and not jobs
which is sad because it affects the virtuous cycle: more jobs-more people are buying-business growtax revenue increase-more government programs-more educated people and so on... But now days
we are struggling to get an education, we are living the opposite of the cycle. Another thing that
surprised me was that 400-millionaire equals half population in America as far s concentration of
money. Fortunately, there have always been people who stand up, who advocate for equality through
social movements and education. The “1 %” is just that, 1%, even the top 20% can’t outnumber the
vote of 80%. And while money may buy power, knowledge is power. The more people that know
about what is really going on in their government, the more likely it will change for the better. It is an
Irony of how much money is spent in elections and not in social policies that give justice to people. It
is sad to see that there is more protection to corporations than people. I believe there is time to take
action, to start healing the history of oppression and amend the constitution to abolish corporate
personhood. If we let our voices be heard, united, we can put pressure on the government to limit the
power of corporations. Human beings need human beings to make things work.
Sources
 Hartmann, Thom. "Unequal protection: The rise of corporate dominance and the theft of
human rights." St. Martin's Press. 2002

“Proposed Constitutional Amendments to U.S. Constitution”, Reclaim Democracy.org 201001-21.
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Schmidt, Steffen W., Shelley II, Mack C. and Bardes, Barbara A. “American Government and
Politics Today”. Boston. Cengage Learning. 2012-2013 ed.

Henslin, James M. “Essential of Sociology”. Illinois. 8th ed. Pearson. 2009.

Friedrichs, David O. (2009). “Corporate Personhood and Corporate Decision Making”.
Trusted Criminals: White Collar Crime in Contemporary Society. Cegage Learning. ISBN 9780-495-60082-4

Goleman, Daniel,10/06/2013, on page SR12 of the New York edition with the headline: “Rich
people just care less”.
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Move to Amend.org