Predictably, another politically favored and connected business has failed and the federal government is going to make American taxpayers cover the losses. This is not how our system of government was supposed to work.
James Madison sought to ensure that “factionalism” would not emerge in the U.S., with various groups vying to get the most they could through political machinations. The Constitution was drafted so as to prevent the government from dispensing favors. That was the point of the “General Welfare” clause — to keep Congress from appropriating money to be spent in ways that were only for the welfare of select groups. Unfortunately, the Constitution’s restraints were shredded long ago, and today, the feds ladle out money for bankrupt banks, union pension funds, and many other pet causes.
Writing for the Daily Signal, Jarrett Stepman finds some words of wisdom from our seventh president, Andrew Jackson. Quoting from Jackson’s 1832 speech following his veto of the renewal of the charter for the Second Bank of the United States: “Many of our rich men have not been content with equal protection and equal benefits, but have besought us to make them richer by act of Congress. By attempting to gratify their desires we have in the results of our legislation arrayed section against section, interest against interest, and man against man, in a fearful commotion which threatens to shake the foundations of our Union.”
How much better off we would be if the feds had never gotten into the business of special favors and bailouts. It seems to me that someone wanting to become our 47th president might want to pledge a return to using the Oval Office to stop the financial bleeding of the taxpayers to succor banks, businesses, and other interest groups.