The Daily Switch

Posts Tagged ‘Democrats’

The Great Overreach

Posted by Ender on April 4, 2009

The problem with the Liberal philosophy is that it has an unquenchable thirst for power. When was the last time you heard a Modern Liberal, not to be confused with a Classical Liberal, call for a decrease in Government? I guess I should clarify, when have they asked for a decrease in Government outside of Law Enforcement and the Military? This should not be a surprise even to Liberals because the idea that the Government can solve any problem is at the core of their belief system. “Failure is not the product of his beliefs but merely want of power and resources.” (Levin) A belief system with this at its heart will invariably lead to severe overreaches when they are in power. In only about two short months we have seen several examples of overreach.

Salaries

Barney Frank

Barney Frank

On March 22nd, I wrote a piece about how the administration was seeking to control executive pay. I asked “How long until it’s not just executives anymore?” Well, unfortunately, it appears the answer was 2 days. On May 24th, the House Financial Services Committee Chairman Barney Frank passed the Pay For Performance Act of 2009. The act “is not limited just to those firms that received the largest sums of money, or just to the top 25 or 50 executives of those companies. It applies to all employees of all companies involved, for as long as the government is invested. And it would not only apply going forward, but also retroactively to existing contracts and pay arrangements of institutions that have already received funds.” It would give power to the Treasury department to determine if salaries are unreasonable.

Initially, this would be justified by only applying to companies that took bailout money. The problem I see is the problem of the slippery slope. Just look at where it has taken us so far, from just executives to all employees of bailout companies to…..what? I am reminded of Wickard v. Filburn, a case tried before the Supreme Court. In the 1940s (through today) the Federal Government has the ability to regulate interstate trade. In the Wickard ruling, the Supreme Court decided that it could regulate whether a private citizen could grow crops on his own land to use for his own consumption. How could the Court do this, you ask? Well, the Court said that by not participating in interstate trade the farmer affected interstate trade, thus opening him up to regulation. With rulings like this it doesn’t take much to imagine a situation where the Government declares it can control all salaries.

Running a Business

Giethner and Bernanke

Giethner and Bernanke

Treasury Secretary Geithner and Federal Reserve Chairman Bernanke argued for the ability to “regulate and even take over financial goliaths whose collapse could imperil the entire economy.” Shockingly, Obama agreed. This is such a large overreach/power grab that I am surprised they had the audacity to ask for it. The Government has no right to take over companies like this. The only thing Geithner and Bernanke disagreed on was which of them should have the power. In another post I wrote I talked about how Obama and his team decided that they knew more about the auto industry than the board of GM. The Government cannot run a car company, a bank, a financial institution, a hospital (see Walter Reed) or a post office. A commenter asked what Wagoner (former CEO of GM) knew about running a car company. I ask what does the Government know about running an economy, specifically Geithner. You can learn all about how Geithner devastated the Indonesian Economy in the 90s. In a post on what caused the Tech Boom I briefly mentioned part of its cause was due to the Asian crisis. Guess who was behind it? “[B]y frightening the Chinese into building their vast $US2 trillion foreign reserves, Geithner was responsible for the build-up of tremendous imbalance in the world financial system. This imbalance, in turn, according to Keating, contributed to the global financial crisis which has since devastated the world economy.” Three cheers for Geithner!

Free Speech

Supreme Court

Supreme Court

There have been many attacks on Free Speech in the last few years. Most of them are under the guise of fairness. McCain-Feingold was a blatant attack on free political speech. “Just last week, the Obama administration argued before the Supreme Court that it has no principled constitutional problem with banning books.” (Goldberg) The Supreme Court is hearing a case about a documentary called Hillary: The Movie. “Several justices asked the deputy solicitor general, Malcolm Stewart, if there would be any constitutional reason why the ban on documentaries and ads couldn’t be extended to books carrying similar messages. Stewart, speaking for a president who once taught constitutional law, said Congress can ban books “if the book contained the functional equivalent of express advocacy” for a candidate and was supported, even slightly, with corporate money. Such advocacy, Stewart conceded, could amount to negatively mentioning a politician just once in a 500-page book put out by a mainstream publisher.” I guess these words just aren’t clear enough “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.” (Before people start commenting on McCain being on the Right, give me a break. He has more in common with the Left than the Right, which is why he lost the election.)

These are just a few examples of the overreaches we have seen lately. Let’s hope the American people remember Liberty and wake up soon.

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