Systemic Flaw

The confirmation hearings for the new Supreme Court justice reminded me of two clauses of the US Consitution...the Spending Clause and the Commerce Clause.  The Founders recognized that these clauses held the key to control of the power of the federal government. 

Through compromise, they settled on this simple language for the Spending Clause.  "to pay the debts of the United States, and to provide for the common defense and for the general welfare of the United States."  Similarly general language enabled the federal government "to regulate commerce among the several states."  It is really hard to believe that these two clauses have evolved into the collossal Leviathan that can spend money on anything, and regulate virtually any activity in the country.

Over time, a combination of court decisions and legislation have removed the intended limitation of the federal government by these two clauses.  Beginning in the early 20th century the rise of progressive government; World War I; the Great Depression; and World War II; set the stage and enabled our current version of government.  In this current crisis, we are learning the cost of a government that cannot be limited by the constitution or the voters.

The proposed constitutional amendment supporting the Hedge Tax was devised to take one step to rein in the power of central government, and make it more accountable to the voters.  The key elements are a reconnection of taxation to spending and a requirement for a balanced budget.  The Hedge Tax will not solve every problem of governance, but it will go a long way.  It will change the focus of the voters from "what's in this for me" to "what will this cost?"  It will correct the systemic flaw in our constitution that is underminng the finance of our country.

Comments

[Kyle]

Without the the "Hedge Tax" proposal that you outlined in your book, I don't see any chance for a reversal of this slippery slop we have been accelerating down for decades. In fact, I have become so cynical with the revenue generation schemes of the Federal Reserve, that I see no point in concerning myself with what the clowns in government do anymore. Without any restraint, they have grown to a point that they can't be stopped. Now everything is simply a drama whose outcome either slows or speeds the downward spiral, but never actually changes the direction.