The Old-School Liberal

“Freedom granted only when it is known beforehand that its effects will be beneficial is not freedom” — Friedrich Hayek

Posts Tagged ‘Constitution’

Cato on the Gold Standard

Posted by Poorsummary on February 20, 2008


50267026.jpgLawrence H. White, Professor of Economic History at the University of Missouri-St. Louis debunks several myths about the gold standard and concludes the following:

“A gold standard does not guarantee perfect steadiness in the growth of the money supply, but historical comparison shows that it has provided more moderate and steadier money growth in practice than the present-day alternative, politically empowering a central banking committee to determine growth in the stock of fiat money. From the perspective of limiting money growth appropriately, the gold standard is far from a crazy idea.”

Read more about the seemingly antiquated monetary regime that our constitution prescribes and politicians ignore here.

Posted in 2008 Presidential Race, Constitution, Politics, Ron Paul | Tagged: , , , , | 2 Comments »

Eminent Domain: The Rise of the Command and Control Economy

Posted by Poorsummary on October 24, 2007

The eminent domain clause of the U.S. and most (if not all) states’ constitutions allows for the government to seize property (with compensation at what the court deems to be the “market” value) for public use. The economic rationale behind such an argument is that bargaining difficulties may prevent the construction of things like courts, post offices (can anyone remind me why the government runs the mail service?), water treatment plants, roads, and the like.

While an unfortunate violation of property rights, the use of eminent domain for such projects can perhaps be justified on utilitarian grounds; however, a recent trend has emerged in which state bureaucrats have begun seizing private property from one group of private individuals (often including the poor) and transferring it to another group of private individuals (often including big businesses). Alarmingly, the rationale for making such a seizure often is based on the grounds of increased tax revenue: e.g. “If I can give this block of low income housing to a private developer, if he can turn it into a high tax-revenue strip mall, and if the government can then use the revenues for the “public good,” then we are properly using eminent domain for projects intended for public use.”

Carlos Barragan

This argument is really no different than other socialist arguments for government control of property. A respect for personal property rights simply does not allow this type of justification for government coercion.

Carlos Barragan, the next victim of America’s socialism

A recent case involving government abuse of eminent domain can be found in The Community Youth Athletic Center (CYAC), founded by Carlos Barragan and his son, Carlos Jr. Currently, the city of National City, CA intends to seize the gym through eminent domain so that Jim Beauchamp can build high-end condos on that property. Jeff Rowes of The Institute for Justice reports:

“To make this happen, and to enable the city to transfer other private property to big business, National City is preparing to once again declare ‘blighted’ hundreds of commercial properties within a decades-old blight zone that covers two-thirds of the entire city. [This] enables National City to take low-tax-yielding small businesses and give that land to developers who promise to build high-tax-yielding properties, such as condos and big-box stores…As any visitor can attest, National City’s sprawling blight zone is remarkable for its lack of blight: the streets are lined with lovingly tended homes and thriving, though often humble, small businesses. Rather than embrace its grassroots entrepreneurs, however, National City plans to demolish them—and their dreams—in favor of retail mega-stores and upscale condos.”

For those of you hoping the Supreme Court will get involved to stop this blatant abuse of government power, I refer you to the infuriating Kelo decision. The full text can be found here (read the dissenting opinions, if nothing else). A NY Times article on the decision can be found here.

Posted in Constitution, Current Events, Government Gaffes, Politics | Tagged: , , , , , , , , , , , | 5 Comments »