
Natural Law: The Foundation of an Orderly Economic System by Alberto M. Piedra
I recently wrote a book review of the above book that is posted here. The thesis of the book is, that although capitalism is a great boon to humanity, its philosophical basis is weakened by the fact that its constructs are not based on Natural Law as derived from God. The writer, Alberto Piedra warns us about this weakness:
It would be ironic that, now that totalitarianism of the Marxist type has lost its luster, a new and more subtle danger would raise its ugly head and threaten not only the innermost dignity of the human being but also the very existence of free societies of the Western World….In order to avoid this danger and preserve his freedom and dignity, man must have a better understanding of Natural Law. Without such an understanding , the very concept of Natural law is distorted to such a degree that man ceases to be considered the most important reality within the social fabric. Consequently, the very dignity of the human person is jeopardized and man may fall prey to the abuses of brute force or the selfish interests of the powerful and mighty…. (emphasis added)
To strip a person of the right to control the fruits of his labor including his home and the land upon which he has built a business to sustain himself, his family and his employees is an assault on his dignity and human rights as given by God. It is a failure on the part of the Court to recognize that the rights enumerated therein are not bestowed by the government. They are a reminder to government that these are the Natural rights of man given by his Creator.
It is one thing to use eminent domain to take land for a road or a school or other public use that everyone has the right to enter and use. Indeed, governments must go to constituents for the funds to build such things, thereby naturally limiting such takings.
But now, the United States Supreme Court in Kelo vs. New London has given carte blanche to local and state governments to take your land to give to a Starbucks, Walmart or developer to use as office buildings. Your hopes, dreams, aspirations for and investment in your property are trumped by the hyper-materialistic drive of governments to pad budgets and “revitalize” areas deemed by the “anointed” as unattractive or not up to snuff by letting private interests use their own money for such endeavors. Likewise, these private interests now have the effective blessing of the Court to use local and state governments to acquire property that they cannot justly acquire through negotiation.
So “Lunchpail Joe” beware! You have become fodder in the grinder of those for whom economic progress is a concept totally uncoupled from Natural Law derived from God. God said that “Thou shalt not covet”– but Walmart and Costco don’t appear to believe that the Tenth Commandment applies to them when they covet the land upon which your little frame house sits.
Justice Stevens writes the majority opinion in Kelo, and his opinion is a continuation and expansion of a line of sorry cases that exemplify judicial activism and departure from constitutional principles. Using the doctrine of stare decisis does not exempt one from accusations of judicial activism if the seminal cases are, indeed, activist in their constructs. Poison seeds were sown with past cases.
To preface, the Takings Clause of the 5th Amendment states:
“Nor shall private property be taken for public use, without just compensation”
Through the manipulations of past Courts, the phrase “public use” has been twisted beyond its original meaning. This Court confirms that it shall consider it to mean “public purpose” so that property can be taken–not to use for a public road or school–but to be given to a private interest as long as it fulfils some “public purpose” as defined by the state or local government. The Court, essentially abrogates its role of interpreting the U.S. Constitution, because it refuses to lay out any rule or limitation on the what the “actual use” of the property must be to be a constitutionally appropriately “public purpose” believing that one would be too “difficult to administer.”
Justic O’Connor points out the fallacy of failing to enumerate any limitations and she predicts the probable malevolent outcome of this decision will be to the benefit the rich and powerful at the expense of those who are not rich and powerful. Unfortunately, Justice O’Connor seems to suggest a finger in the dike approach with a prohibition on takings for “economic development” and she gives deference to two cases upon which the Majority bases its decision. These cases turned my stomach when I read about them in the opinion.
The first is Berman v Parker decided in 1954. The Court decided that a city could take a slum neighborhood, construct some roads and schools and public facilities and then sell the rest to developers for urban renewal. I guess this was the beginning of the sort of “gentrification” that Justice Thomas points out displaced thousands of blacks and other minorities. Berman was the owner of a department store who argued that since the store was not blighted, as was the rest of the neighborhood, his store should not be taken. The Court ruled against him because the City had a comprehensive plan and it didn’t want second-guess the City’s decision to treat the neighborhood as a whole.
The second case is Hawaii Housing Authority v Midkiff. In that case, decided in 1984, the Court allowed the State of Hawaii to indulge in the Banana Republic behavior of transferring land from lessors to lessees because of something called “land oligarchy”. As O’Connor notes, “It is only the taking’s purpose, and not its mechanics”, we explained, that matters in determining public use.”
Justice Thomas’s dissent is brilliant, in my opinion. It is the only principled approach to the decision. He does not, like O’Conner, suggest grafting on a new contortion to the existing cases to hold back the seemingly inevitable consequences of past case law. He wants to go back to the original meaning of the Constitution.
He recognizes that the Court is “nullifying” the protections of the Savings Clause and that the words of the Constitution have specific meaning. Public “use” is not the same as public “purpose.” One can be objectivley determined–the other can not. Thus, he says:
“The term “public use” then, means that either the government or its citizes as a whole must actually “employ” the taken property.”
Thus, Thomas proposes that we go back to the original meaning of the Constitution–sweeping away cases that conflict. He notes that the “Takings Clause” is not a power of the government it is a prohibition of power. And he recognizes that: “The “public purpose” test applied by Berman and Midkiff also cannot be applied in principled manner.”
Thomas sticks it to the Majority when addressing its decision not to enunciate an “actual use” standard when he says:
“It is far easier to analyze whether the government owns or the public has a legal right to use the taken property than to ask whether the taking has a “purely private purpose” unless the Court means to eliminate public use scrutiny of takings entirely. Obliterating a provision of the Constitution, of course, guarantees that it will not be misapplied.” (emphasis added)
He points out the absurdity of the Court in taking the stance that it shouldn’t place any restrictions on State and Local Governments by determining how the Takings Clause of the 5th Amendment of FEDERAL Constitution should be applied. He points out that the Court routinely restricts State and Local governments in searches of citizen’s houses:
Something has gone seriously awry with this Court’s interpretation of the Constitution. Though citizens are safe from the government in their homes, the homes are not.
Who will now protect us? Not necessarily free marketeer capitalists. I just heard one on Your World with Neil Cavuto use a pro-capitalist argument to justify allowing local governments to encourage economic growth through eminent domain.
Then there is this argument by the brilliant libertarian law professor Eugene Volokh:
The funny thing is that, in Kelo v. City of New London, it is the (mostly liberal) majority’s test that would give the government flexibility to serve public goals by taking property and selling it to private parties, when the government thinks the private parties will be better positioned to provide the public benefit. And it is the conservative dissenters’ test that would give the government a strong incentive to own and operate various enterprises itself, or insist that whoever owns and operates them labor under the burdens of being a “common carrier.”
Under the dissenters’ view, if the City of New London wants to take property to run a shopping mall, which would presumably provide more jobs and government revenue, it’s free to do so. But if it wants to take property and resell it to a private shopping mall owner, it may not. True, the latter solution isn’t the pure free market: The mall owner would be getting a government benefit in the form of property taken from the original owners (albeit with compensation), just as school choice programs get a government benefit in the form of money taken from taxpayers. Still, it seems better than the City running retail stores — yet the dissenters’ approach would give the City an incentive to do that, rather than lining up more efficient private businesses to do it.
This is a utterly materialistic and pragmatic argument that is grounded in neither Natural Law nor principle. It springs from pure rationalism without regard for justice for the human person.
Volokh’s argument and this case demean the dignity of the people who worked and saved for and invested in their property and who want to keep it. They diminish the significance of the work that these owners did to obtain and maintain their homes and businesses. As Piedras points out in Natural Law: The Foundation of an Orderly Economic System:
“Although Christianity stressed through the centuries the dignity of work and its importance for man’s ultimate salvation, most of the intellectual movements of the eighteenth and nineteenth centuries reduced work, as any other factor of production, to a necessary object for economic growth and development.”
I believe that the logical outcome of this case is to further erode human dignity and to cause governmental entities to objectify their constituents as either those who are worthy of tribute in the form of property taken from unwilling sellers, because they can more effectively turn a buck with it; or average Joes who simply want to enjoy the fruits of their labor and are, therefore, deemed unworthy of the right to keep their modest homes and businesses. Indeed, Rick-at-Stones-Cry-Out in an excellent review of Kelo, has written about the caculus governments use in analyzing land use and it is purely material and without regard to other human concerns:
In my article, A Marriage of Convenience: Fiscal Incentives and Residential Development Patterns, I define fiscalization of land use as a “phenomenon whereby local land use decisions are mostly influenced by fiscal concerns, contrary to the expressed desires of the affected community.†In light of today’s decision, this definition falls a bit short as it is limited to land use and zoning powers, not powers of eminent domain. Nevertheless, the concept is the same. In California, where the State has a penchant for raiding local revenues to balance its budget, the incentive to bulldoze otherwise viable neighborhoods to capture sales tax revenue is even greater. Local governments now are freer to condemn land to pad local coffers and where jurisdictions have limited revenue alternatives, land use fiscalization can be expected to increase.
I fear that this is, indeed, a situation where, as Piedra says:
…the very dignity of the human person is jeopardized and man may fall prey to the abuses of brute force or the selfish interests of the powerful and mighty.
Such is the result of law and economics divorced from morality.
*Submitted to Wizbang’s Carnival of the Trackbacks VIII. Thanks for the opportunity Wizbang!