Of Federal Bondage

If today’s US government were limited, as it should be, to that described by the Constitution, what would that look like?

Many of our “essential services” have only been “essential” for a few decades. The Department of Education [conduit for the Kennedy-Bush "No Child Left Behind" travesty] was formed by “Jimmah” Carter in 1980. HUD, Medicare & Medicaid, and the National Endowment for the Arts were all part of Johnson’s “Great Society” reforms from the mid-to-late 1960s. FDR’s “New Deal” created the FDIC, FHA, and Social Security, among many others.

It would seem that, at some point after the middle of the 19th century, into the early 20th century, if there were a perceived need in society, rather than allowing community activists and social organizations to address it, Congress instead passed a law, the President signed it, and a new bureaucracy was born.

Cui Bono?

I did a little mental exercise in re: this bailout of the mortgage industry. If Congress spends $300 billion in order to remove thousands of Americans from the consequences of their malinvestments, and there are roughly 300 million Americans, that’s be an expenditure of $1 000 per American. If the median income is $40 000 per annum, and half of that is the poverty level [below which wage earners do not contribute to the federal tax receipts], if 20% of the population (60 million) are below poverty level, then they aren’t paying their share of the $1 000. That means the rest of us are paying $1 250 each. In my situation, as the sole wage earner, that means I’m carrying the load for my family of five, or $6 250.

Let me restate that: I have not taken out a risky or sub-prime mortgage; I have not over-extended myself with a ridiculous [with historically low interest rates] ARM that can only adjust up; I have not defaulted on any loan, ever. Despite all this, I am still personally liable for over $6 000 in taxes towards bailing out fiscally irresponsible individuals and banks, a huge percentage [considering my lack of contributing to this fiasco] of my annual income.

Adding insult to injury, the “stimulus check” [foisted on me by a government full of economically-challenged politicians trying to buy votes in a contentious election year] was half that, so the government’s vote-buying schemes have put me out, so far this year, nearly $9 500, for a “gain” of $2 100, for which I never asked. Net cost to me: $7 400, or a huge portion of my annual income tax liability.

Gosh, Lassie! Do you think that my current tax rate is indefinitely sustainable if the government keeps offering bailouts similar to this one, which is only the logical outcome of this one? [I mean, if the mortgage mess deserves a government bailout, what about when the stock market crashes and all the pensioners lose their nest eggs? Or, for that matter, when current workers lose their nest eggs? What about when businesses — or even entire industries — start to fail?]

If $7 400 is a large portion of my annual income taxes, how long, with additional industries being propped up by the government, will my tax rate stay where it is? What about yours? The FED can’t keep printing money out of nothing indefinitely, not without tempting hyperinflation, to cover the government’s debts. [Besides, who wants to buy government debt instruments that are guaranteed to have no value?] If the only viable option is higher taxes, because that’s the only way the government actually makes [as opposed to prints] money — in any other locution, “highway robbery” — what higher tax rate is bearable? Again, Uncle Sam only has money because he steals it from us forces us to give it to him. So, who pays for all this, again?

A Question of Scope

Under the Constitution, there are only a very few justifiable functions for the “general” government. While many interpret the “promote the general welfare” clause in the Preamble as a sort of carte blanche for governmental meddling, that is not the case.

Most of — what the French call “the lion’s share” — the expansion in the size of the government has been in the Executive. This is due to the fact that the various Presidents have sought more powers from Congress, have seized more powers from Congress, or have been ceded more powers from Congress. Especially in times of national disasters, Congress has in a “chicken little” mentality [and I'm sure with only the best of intentions] either created more unnecessary bureaucracy in order to meet the demands of the moment, or has abdicated its powers to the President, which required creation of more unnecessary bureaucracy in order to meet the needs of the moment.  And “temporary programs,” in government parlance, tend to have long lives.

If our government were returned to its Constitutional size, what would that look like?

The powers of the Executive are not broad:

  • Commander in chief of the Army and Navy of the United States, and of the militia of the several States, when called into the actual service of the United States
  • May require the opinion in writing of the head of a department on any subject relating to that department
  • Can grant reprieves and pardons, except in the case of impeachment
  • Can make treaties, with the support of ⅔ of the Senate
  • Appoints ambassadors, other public ministers and consuls, judges to the Supreme Court, and various other officers, with the support of ⅔ of the Senate
  • Can make recess appointments
  • Makes recommendations to Congress
  • May, under extreme circumstances, convene or adjourn both Houses of Congress
  • Receives ambassadors and other public ministers
  • Ensures faithful execution of laws
  • Commissions all officers of the United States

Notice what’s not in there: no declarations of war, no ensuring availability of housing, no welfare payments; no educational oversight, no regulation of commerce, no involvement whatsoever in agricultural subsidies, energy policies, or land management; nothing to do with labor disputes, roads, bridges, or highway safety, environmental stewardship, or monetary policy. Also, since Congress has the power to “raise armies,” [which suggests no intention for a standing, professional army] the President should only be Commander-in-Chief [only of the military forces] during times of war (except that a standing Navy would always be under his command).

In the same way, Congress’ powers are broader, but still limited:

  • Sole power of impeachment (House); sole power to try all impeachments (Senate)
  • Judges the elections, returns, and qualifications of its own members; simple majority constitutes a quorum; can compel attendance of absent members
  • Determines its own rules for proceedings; can punish members; can expel members (with ⅔ vote)
  • Keep and publish a journal of its proceedings, including with a one-fifth vote, a record of the yeas and nays
  • Free from arrest, except for treason, felony, or breach of the peace, when traveling to or from, or during, a session of Congress
  • Originate bills to raise revenue (House); propose or concur with amendments (Senate)
  • Present bills (and orders, resolutions, and votes) to the President for signature into law; override Presidential vetoes with ⅔ vote in both houses
  • Lay and collect taxes, duties, imposts and excises [in order to] pay the debts and provide for the common defense and general welfare [as opposed to "provide the general welfare"] of the United States
  • Borrow money on the credit of the United States [as opposed to "ruin the US economy via obscene amounts of debt"]
  • Regulate commerce with foreign nations, among the states, and with Indian tribes [abdicated]
  • Establish uniform rules for naturalization, and bankruptcy
  • Coin money and regulate its value, and the [relative] value of foreign currency, and establish a uniform standard of weights and measures [abdicated]
  • Provide punishment for counterfeiters of currency and securities [does the FED fit into this?]
  • Establish post offices and post roads [abdicated]
  • Establish copyrights and intellectual property rights
  • Set up courts inferior to SCOTUS [abdicated in re: GWOT]
  • Define and punish piracy and other international felonies, in accordance with international law [abdicated in re: GWOT]
  • Declare war; issue warrants for the capture, destruction or death of foreign assets, individuals or groups; and make laws concerning the capture and disposal of foreign powers and other bad actors found in US territory [abdicated]
  • Raise and support armies for as long as two years [see my standing army comment above] [abdicated]
  • Provide and maintain a Navy [notice the difference in wording it's important!] [abdicated]
  • Govern and regulate the military; provide for calling forth the various militias; provide for organizing, arming, and disciplining the militias, except that the states are responsible for appointing officers and training the militias [partially abdicated]
  • Exclusively oversee and legislate a District to be used as the seat of government, and any federal lands purchased to be used as military installations [abdicated]
  • Make whatever laws are necessary and proper to fulfill these enumerated powers

What Congress is specifically prohibited from doing:

  • Suspending habeas corpus, except in time of rebellion or public safety [this power never falls to the President] [abdicated]
  • Issuing bills of attainder, or ex post facto laws [ignored]
  • Taxing exports from any state
  • Regulatory preference of one state over another, or duties on a vessel entering one state from another [ignored]
  • Spend money in any way not provided by law [ignored]; must regularly publish an account of all monies spent
  • Confer titles of nobility; must consent to any public officeholder under its control accepting any gift or title from any foreign power [practically ignored; e.g., career politicians]

Congress and the states together are bound, as well:

  • States may not enter into treaties or alliances; issue letters of marque and reprisal; coin money or print fiat currency; require anything other than gold or silver coin as payment; issue bills of attainder or ex post facto laws or those impairing the obligation of contracts; or grant noble title
  • A State may not, without Congressional consent, tax imports or exports, except to provide for executing it’s inspection laws (the net proceeds of any such taxes shall be for the use of the US Treasury) and all such laws shall be subject to review and revision by Congress
  • States may, only with the consent of Congress, tax tonnage, or keep troops or naval vessels in time of peace; enter into agreements with another state or a foreign power; or engage in war, unless invaded or under imminent threat of invasion [partially disregarded]

Notice how many of these Congressional powers have been ceded to the President. And how much Congress does that was never intended to be within its purview.