Last week, the US Supreme Court ruled that the Congressional limit on corporations and labor unions advertising for and against political candidates violates free speech principles.

Constitutional law scholars, the media and the public will debate whether corporations are entitled to free speech protections and Congress may revisit campaign contribution limits and public funding.

But the potential corporate, business and economic consequences of the decision, assuming it stands, are profound. Conservative and business media have thus far favored the decision as helpful to business; but it’s not at all clear that it is favorable to the economy. It’s likely to hurt the dynamism of the American economy, perhaps severely.

The Court’s decision will strengthen the hand of incumbent interests over unorganized emerging interests. That is not good. Incumbent business interests often see upstarts as competing unfairly, as needing to be regulated, and as deserving of being suppressed. Incumbent businesses like politicians to squelch new entrants. With their checkbooks now opened up, they will support politicians who seek to regulate and suppress upstarts.

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