Category Archives: Economics

More Critique Of The “Constitutional Law” Professor

…from Richard Epstein:

Unfortunately, Seidman has the causation reversed. The reason why the situation today is so perilous is that Congress is not strictly bound by the Constitution, just as Seidman advocates. There are currently no constitutional constraints limiting the discretion of Congress to decide what tax burden will be placed on what groups for what reasons. In fact, the only restraint on taxation is a broken-down system of public deliberation, which results in a fruitless question to find, as Seidman puts it, “a common vocabulary to express aspirations that, at the broadest level, everyone can embrace.” Otherwise, Congress is free to dispense tax favors and impose tax burdens as though there were no tomorrow.

…The older conception of public goods has been entirely rejected by all justices on the Supreme Court regardless of their political persuasion, so we have a current legal regime that is just the one Professor Seidman craves. On taxing and spending, we have a constitutional structure that is not informed by a single action or statement of James Madison or any other founder. Instead, our structure allows Congress to debate the many vexing problems of current times unhindered by constitutional principle, passing statutes whose “wisdom or fairness” is beyond the power and the competence of the courts to judge.

We need more, not less, adherence to the Madison’s Constitution. And as he notes, strictly followed, Madison’s principles would require a flat tax. A progressive one is unconstitutional.

Clueless Greens

Starving the world’s poor:

We’re betting that this news won’t dent greens’ self-confidence. They will still insist that unless they are put in charge of the entire world economy we face disaster. The sad truth is that the more power they get, the more damage they do.

They don’t care about poor people. They don’t care about people at all, except themselves.

To Those Who Oppose The Constitution

A response:

…there always have been American Tories—people who chafe at restraints on central power and would prefer a British-style government. In recent years, as political “progressives” have gradually lost the scholarly battle over constitutional interpretation, some have stopped pretending the Constitution means whatever they want it to, and have begun to trash the document itself.

But the source of the claim is more shocking, because it comes from one who has taught constitutional law for 40 years. And who should know better.

Did the Constitution cause our present “fiscal chaos?” Quite the contrary. The crisis has arisen not because we followed the Constitution, but because we have allowed federal officials to ignore it. In the 1930s, the Supreme Court announced that it would stop enforcing the Constitution’s limits on federal spending programs. Without meaningful spending restraint, Congress became an auction house where lobbyists could acquire new money streams for almost anything—a redundant health care program; a subsidy for an uneconomic product; or a modern art museum in Indiana.

It is hard to believe there would be a fiscal crisis today if federal spending had remained within the Constitution’s generous but limited boundaries.

…Although it is true, as Professor Seidman states, that politicians have violated the Constitution, it is rarely true that we have been better off for it. The breaches have included incarceration of innocent citizens during World War II, ill-advised attempts to micro-manage the economy through monetary and regulatory policy, and unrestricted spending. We have lived to rue them all.

The thought of limited government is anathema to would-be tyrants. Read the whole thing, which demolishes the ad hominem arguments put forth by those who want to ignore our founding document.

The Left’s War On Science, Part …

It turns out that fracking is perfectly safe, and the New York state government tried to hide the evidence:

Greens are quick to defend their climate change position with scientific evidence and have positioned themselves as a movement wedded to science. But it is becoming increasingly apparent that evidence is a flag of convenience for a movement that is rooted in emotion and passion far more than it likes to admit.

Because it doesn’t like to admit it at all, even though it’s mostly that.

The Zero-Sum Thinking

…of a small-minded class warfare president:

…the worst thing that you’ve done internationally is what you’ve done domestically. You sent a message to America in your re-election campaign. Therefore you sent a message to the world. The message is that we live in a zero-sum universe.

There is a fixed amount of good things. Life is a pizza. If some people have too many slices, other people have to eat the pizza box. You had no answer to Mitt Romney’s argument for more pizza parlors baking more pizzas. The solution to our problems, you said, is redistribution of the pizzas we’ve got—with low-cost, government-subsidized pepperoni somehow materializing as the result of higher taxes on pizza-parlor owners.

In this zero-sum universe there is only so much happiness. The idea is that if we wipe the smile off the faces of people with prosperous businesses and successful careers, that will make the rest of us grin.

There is only so much money. The people who have money are hogging it. The way for the rest of us to get money is to turn the hogs into bacon.

Mr. President, your entire campaign platform was redistribution. Take from the rich and give to the . . . Well, actually, you didn’t mention the poor. What you talked and talked about was the middle class, something most well-off Americans consider themselves to be members of. So your plan is to take from the more rich and the more or less rich and give to the less rich, more or less. It is as if Robin Hood stole treasure from the Sheriff of Nottingham and bestowed it on the Deputy Sheriff.

But never mind. The evil of zero-sum thinking and redistributive politics has nothing to do with which things are taken or to whom those things are given or what the sum of zero things is supposed to be. The evil lies in denying people the right, the means, and, indeed, the duty to make more things.

And in all of his policies, that’s exactly what he does.