Federal Corporate Chartering is an Essential Policy to Democratize Our Economy

Today, Democracy Journal published my latest article arguing that Congress should enact a law that would require national corporations to obtain a federal charter (similar to a contract), and only then would a corporation be allowed to engage in commerce between the states. As I explain, this policy has deep historical roots to ensure that corporations are acting in the public interest.

You can read the full article here. Below is the first couple of paragraphs.

Federal and state regulators have recently taken significant action to curb concentrated corporate power in our economy. Some notable steps include state enforcers filing new antitrust cases against Google, and President Joe Biden signing a sweeping executive order in July that commands America’s gamut of federal administrative agencies to use their congressionally delegated authority to deconcentrate the U.S. economy and appointing progressive antitrust enforcers like Lina Khan, Jonathan Kanter, and Tim Wu to prominent regulatory positions. These actions are an important step toward fundamentally changing the public’s relationship with corporations.

Though antitrust is an essential tool to tame and extinguish concentrated corporate power, it is just one component of a comprehensive policy prescription to democratize the economy and transfer power from dominant corporations, financiers, and shareholders to small businesses, workers, and the public at large.

Politicians and policymakers with an interest in truly curbing out-of-control corporate power in the United States should take advantage of this new paradigm of increased antitrust litigation and enforcement, along with Democratic control of the White House and both houses of Congress. They should use all relevant areas of law to fundamentally transform the relationship citizens have with corporations. Corporate law is one area in particular that Congress should consider.