Citizens United, shareholder paternalism and arts funding

Published August 11, 2011 4:00am ET



Citizens United, the 2010 ruling that famously led President Obama to wag a disapproving finger at the Supreme Court during his State of the Union address, held that businesses have a right to engage in political campaigning. Although the decision applied equally to unions and nonprofits, Democrats feared that the effect would be to damage their party’s electoral prospects. In response, the heads of the Democratic House and Senate congressional campaign committees hurriedly introduced legislation that they hoped would “fix” Citizens United by discouraging, and in some cases prohibiting, businesses from using their newfound rights.

The Disclose Act, as the legislation was called, ultimately failed to pass Congress in the face of unanimous Republican opposition.

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