In a surprising twist, Greg Buchak of Stanford suggests that the controversial Citizens United vs. Federal Election Commission ruling may have had positive economic effects. Contrary to the prevailing belief that the 2010 decision, which lifted most restrictions on campaign spending, would benefit only big businesses and wealthy donors, Buchak’s research indicates that the states affected by the ruling saw notable economic growth. The study shows that wages, hiring, and business incomes, particularly among younger firms, increased significantly in the years following the decision.
The conventional wisdom has been that unleashing more money into politics would entrench the power of established special interests. However, Buchak’s findings suggest otherwise. By allowing more companies, especially smaller and newer ones, to participate in the political process, Citizens United diluted the influence of longstanding power players. This shift led to higher turnover in state elections, forcing politicians to focus on pro-growth laws and regulations. The result was a 2% increase in total output within states, benefiting a broader range of businesses and their employees.
Critics have long argued that Citizens United would undermine democracy and disproportionately advantage the rich. Yet, Buchak’s study challenges this narrative by showing that both businesses and workers, especially those at newer firms, saw economic gains. The ruling appears to have motivated politicians to prioritize economic policies over socially divisive issues, fostering an environment where companies that were once political outsiders could thrive. This unexpected outcome suggests that the Citizens United decision may have spurred a more dynamic and inclusive economic landscape than previously anticipated.
