States Rights

   All of the proceeding has resulted in the abolishment of state’s rights.  One of the main purposes of the Constitution was to limit the powers of the Federal Government.

   Article I, Section 10 clearly outlines what the States are prohibited from doing:

  1. No State shall enter into any treaty, alliance, or confederation, grant letters of marque and reprisal, coin money, emit bills of credit, make anything but gold and silver coin tender in payment of debts, pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility.
  2. No State shall, without the consent of the Congress, lay any impost or duties on imports or exports, except what may be absolutely necessary for executing its inspection laws, and the net produce of all duties shall be for the use of the Treasury of the United States; and all such laws shall be subject to the revision and control of Congress.
  3. No State shall, without the consent of Congress, lay any duty of tonnage, keep troops or ships of war in time of peace, enter into agreement or compact with another State, or with a foreign power, or engage in war, unless actually invaded, or in such imminent danger as will not admit of delay.

   Article IX of the Bill of Rights of the Constitution states:

      “The enumeration in the Constitution of certain rights shall not be construed to deny or disparage others retained by the People.”

   Article X of the Bill of Rights of the Constitution states:

      “The powers not delegated to the Unites States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”

   There is nothing in the Constitution which allows the Federal Government’s involvement in education, health care, social security, road construction, bail outs and loans to businesses, unfunded mandates to the States, or most of the hundreds of other things the Federal Government has gotten involved in.

   Currently, the Federal Government over-taxes the states and then uses this money to coerce the States into doing what the Federal Government wants.  This began in 1937 in Steward Machine vs. Davis.  In this case, the Supreme Court upheld the unemployment compensation provisions of the 1935 Social Security Act.  Under this provision, the Federal Government would impose a tax on all businesses for unemployment insurance.  It would then give the company a 90% credit if their state established an approved unemployment tax system.  The Federal Government was using Federal tax laws to coerce the states into complying with the intent of the Federal Government.

   For example, in West Virginia, the State collects $7.2 billion in taxes.  The Federal Government collects $4.6 billion in taxes from West Virginia citizens.  It then “gives” $4.2 billion back to the state as long as the State follows Federal guidelines.  In that way, the Federal Government dictates virtually every aspect of the State Government, including highways, education, health care, equal rights, abortion, coal mining, environmental protection, vehicle fuel standards, seat belt laws, motorcycle helmet laws, endangered species laws, etc.

   In addition, the Federal Government’s interpretation of the “Commerce Clause” has allowed it to control virtually every aspect of the manufacture and transportation of goods in this country, even for businesses that do not ship goods in interstate commerce.  For example, any business which purchases products from another state is deemed to be involved in interstate commerce and thus can be regulated by the Federal Government.  Also, any business which accepts or uses credit cards is deemed to be involved in interstate commerce.  By these rulings, virtually every business can be regulated by the Federal Government.  In one example, the Supreme Court ruled that a farmer, who neither purchased goods nor shipped goods in interstate commerce, was subject to interstate commerce laws because the food which he grew and consumed affected interstate commerce because, had he not grown his own food, he would have to have purchased that food via interstate commerce!

   Virtually every time the Federal Government has stuck its nose in the State’s business it has failed miserably.  The unintended consequences of its actions are bankrupting this country.  For example, in 1935 the Federal Government passed the Social Security Act.  It originally required the employee and employer to contribute 1% of the first $3,000 of wages into the national Social Security fund.  By 2012, these contribution requirements have grown to 7.65% of the first $110,100 of wages.  While we can argue whether or not this is a good program, the fact is that there is no provision in the Constitution that allows the Federal Government to require this.  This program was actually passed by FDR in order to raise revenues to fund his New Deal programs, not to provide retirement benefits to workers.  Had these funds been deposited into individual retirement accounts, individuals could have accumulated vast amounts of wealth for their retirement and would have had more than enough money to pay for their medical costs.

   Congress, in an attempt to secure votes, has constantly expanded social security benefits without proper funding.  In addition, Congress has appropriated / stolen the funds that were deposited into the Social Security and Medicare Trust Funds and spent them on other programs.  Now the system is broke, primarily because of Medicare (see below).  If any private company would have stolen its employee’s pension funds they would have been put in jail.  However, Congress is immune from prosecution.

   In 1965 President Johnson signed the Medicare bill into law.  He projected that, by the year 2000 the program would only cost $10 billion per year.  However, by 1990 it was already costing $200 billion per year and in 2010 the cost had risen to $680 billion. When Social Security was created the average life expectancy was 66 years which meant that most people would never benefit from the taxes they paid.  Then, the Medicare program significantly extended the lives of retirees, thus helping to bankrupt Social Security and private pension plans which did not take into account the longer life expectancy.

   Medicare also had the unintended consequence of driving up the cost of medical care.  Prior to 1965, medical costs were very reasonable.  However, when companies realized that the Federal Government was going to pay for the medical bills of senior citizens, everyone wanted a piece of the pie.  The medical equipment companies began developing new equipment, the drug companies began developing new drugs and the hospitals expanded to accommodate the new business.  The universities wanted their share of the pie so they raised tuitions on medical students.  The doctors, with huge college loans to pay off, were forced to raise their rates.  Finally, the lawyers saw all of this new money flowing into the medical field and they began suing everyone, driving malpractice insurance rates through the ceiling.  Now, in order to fix the problem that the Federal Government created, it passed the Obama Health Care Bill.  After all, the government “had to do something!”  The Federal government created the health care crisis – what makes them believe that they can fix it with more government intrusion?

   In 1964 President Johnson declared “War on Poverty.”   At the time the poverty rate was 19% or approximately 36 million people.  45 years later, after spending $16 trillion, the poverty rate has been reduced to 15% but the total number of people in poverty has risen to 45 million people.  It is projected that we will spend an additional $10 trillion over the next 10 years.  And what has been accomplished?  We have made more people dependent on the government instead of ensuring that they have a job.  Had this money not been spent, the national debt would have been eliminated and there would have been more money available to the private sector to create jobs. The Federal Government is currently spending $1 trillion per year on welfare.  This amounts to $25,000 per family per year for 40 million families (or 57% of all families in the USA). There are more people administrating these programs than there are families receiving the benefits.  The government would be better off just cutting a check to each family for $25,000 per year!


   In 1980 President Carter created the Federal Department of Education.  In 32 years the Federal Government has spent billions of dollars on education and our education system is worse, not better.   The Federal Government has also gotten involved in higher education.  When the Federal Government began making low cost student loans available, the colleges and universities knew they could raise their tuition and fees because the money wasn’t coming directly out of the student’s pocketbooks.  Now, college tuitions are rising faster than medical costs.  Student loans will be the next financial crisis this country will have to deal with, probably with more taxpayer bailouts.

   The Federal Government decided that they needed to expand home ownership by providing low cost loans to homeowners.  The government continued to pressure lenders to make more loans and reduce lending requirements.  So lenders reduced down payments to zero.  They reduced income requirements and documentation so that more people qualified.  Then when the whole system collapsed, Congress blamed the banks!  Incredible!!!  The Federal government involvement in the housing market has been the primary cause in the incredibly rapid rise in the cost of housing.  Now, the very people who the government was trying to help can’t afford a home!

[See Thomas Sowell video on the Housing Boom & Bust – ]

   Houses are no longer affordable to most working families.  In the late 1970s you could purchase a nice new brick home in a nice neighborhood for $20,000.  A person earning the minimum wage of $2.65 per hour could purchase this home with 21% of their wages.  By 1982 this same home had quadrupled in price to $80,000.  A person earning the minimum wage of $3.35 per hour would have to spend 65% of their income to purchase the same home.  Today, that same home would cost $240,000.  At today’s minimum wage of $7.25 per hour the mortgage would take 91% of their income.

   The Federal Government caused the 1929 Stock Market Crash and the Great Depression by meddling in areas it knew nothing about. The FED greatly expanded the money supply in the mid to late 1920s and then contracted it in 1929.  The 1930 Smoot-Hawley Tariff Bill increased protectionist tariffs dramatically.  In anticipation of the disastrous effects this bill would have on companies, the stock market tanked.  The tariff resulted in higher costs for imported goods and most European countries responded with their own protectionist tariffs.  This stifled exports and caused world trade to collapse. The Federal Government’s response was to impose all kinds of legislation that increased taxes and increased labor costs which further stifled demand for products.  Virtually every program that FDR implemented was a huge failure and made the depression worse.

   The current administration is following in FDR’s footsteps.  From the bailouts of banks and automobile manufacturers, to the stimulus bill, to cash for clunkers and cash for appliances, “green energy” spending and home buyers credits have all increased the deficit and have made the economy worse.


   The Federal Government began subsidizing private businesses shortly after this country was founded.  In the 1830s the Federal Government subsidized steamships in order to allow them to compete with subsidized English ships.  However, Vanderbilt proved that unsubsidized ships could compete more effectively and more efficiently than the subsidized companies.

  In 1863 President Lincoln decided to help finance the construction of trans-continental railroads.  These railroads were poorly constructed and were fraught with corruption.  In order to cover the increased costs of operation, the railroads raised their rates to the point that consumers cried foul.  The Federal Government then stepped in with further regulations that led to the formation of the Interstate Commerce Commission (ICC) which further hampered operations and all of the subsided railroads went bankrupt.  On the other hand, the Great Northern Railroad, built by James J. Hill, was the only non-subsidized trans-continental railroad.  It was better built and better managed, was extremely profitable, and, it never went bankrupt!

   Over the years, the Federal Government has continued to subsidize private businesses with disastrous results.   These subsidies are almost always used to buy votes or to reward large campaign contributors.  Most recently, President Obama’s programs have loaned over $4 billion to “green companies.”  However, 80% of these loans were made to companies who made large political contributions to the President. Several of these companies, including Solindra and Fisker car company, have already gone bankrupt.  Now we learn that the federal government lost $10.5 billion on the bailout of General Motors.  Unfortunately, many other Presidents, both Democratic and Republican, have done the same thing.

   Many laws which we take for granted were originally designed to protect smaller and less efficient businesses, not consumers.  The Sherman Anti-trust Act is the prime example.  Companies like Standard Oil, under John Rockefeller’s management,   brought tremendous benefits to consumers.  He reduced the cost kerosene from over $1.00 to less than $ .05 per gallon.  The Federal Government broke up Standard Oil in order to protect his more politically connected competitors, and in the process, raised the cost of oil products for all consumers.  Now, corporations are constantly harassed under the Sherman Anti-trust laws for political purposes.

   The Federal Government has also failed to enforce Federal laws and then has refused to allow the States to enforce these laws.  The primary example is immigration and border security.  One of the primary duties of the Federal Government is to provide national security but they have decided that the Mexican vote is more valuable than securing our borders.

Article IV Section 4 states:

   “The United States shall guarantee to every State in this Union a Republican form of government, and shall protect each of them against invasion; and, on application of the Legislature, or of the Executive (when the Legislature cannot be convened), against domestic violence.”

   The Federal Government, for political purposes, has failed to secure our borders and has allowed millions of illegal immigrants to invade this country.  While most of the illegal immigrants are here seeking work, many terrorists, gun runners and drug dealers have crossed our borders which are a national security issue.  The Federal Government is now trying to preclude states, particularly Arizona, from enforcing Federal laws relating to border security.  The Federal Government has taken the position that, if the Federal Government chooses not to enforce Federal laws, then the States do not have the right to enforce Federal laws either!

   As of this writing, the Senate has failed to approve a national budget for over 1,000 days. In fact, the three budgets submitted by President Obama have not received a single vote of approval, even from Democrats! The most recent budget proposed by the President projects revenues of $2.6 trillion with spending of $3.79 trillion.  This leaves a deficit of $1.19 trillion in addition to the nearly $5 trillion in deficits during the prior three years, a 63% increase in just four years!

   The President’s current budget amounts to spending of $50,500 for a family of four with tax revenues of only $32,000.  This leaves a deficit of $18,500 for a family of four.  Currently, the Federal Government is borrowing 57 cents for every dollar of revenue it collects. How long could a family exist if it managed its finances the way the Federal Government does?  When President Obama took office the deficit was $500 billion per year.  The $800 billion stimulus bill raised the deficit to $1.3 trillion per year. Then, because no budget has been passed in four years, the Federal Government just continued to spend at these levels causing the national debt to balloon from $10 trillion in 2008 to $17 trillion in 2012.  It is projected that by the end of President Obama’s term that the national debt will amount to $20 trillion.  It took this country 230 years to accumulate a $10 trillion deficit and in just eight years President Obama will have doubled it!

   Currently, 10% of all households pay 71% of all income taxes while 50% of all households pay no Federal income tax at all.  This is not the fair tax system envisioned by our Founding Fathers.  Now the government wants these 10% to pay even more income taxes to support a bloated Federal government and to re-distribute this money to others. Often times this money doesn’t go to the poor but to political cronies like Solindra and General Electric.

   The Senate passed the Obama Health Care bill using “deem and pass” and it never received the necessary votes to pass.  In 2009 it was projected to cost $940 billion.  As of March 2012 the projected costs have already risen to $1.76 trillion.  And, this is just the tip of the iceberg.  If it is anything like Medicare, it will bankrupt this country and reduce the quality of medical service!  This bill was passed based on total lies by the government.  (See the section below for further details.)

   Other areas that the Federal Government has overstepped its boundaries include forcing states to provide education and medical care for illegal immigrants.  The courts are forcing cities to build low income housing in order to integrate lower income families into more affluent neighborhoods.  They are forcing Catholic institutions to provide birth control and abortion through their medical plans.  They are using eminent domain to take personal property and then reselling it to developers in order to increase the tax base. They are failing to prosecute black panthers for intimidating white voters.  They are fighting wars without the approval of Congress.  They are giving money to foreign governments which is not authorized by the Constitution. They have passed a health care bill without the required votes in the Senate by using “Deem and Pass.”  Nancy Polesi said that we would have to pass the bill to see what’s in it.  This is certainly the epitome of arrogance in our leaders that needs to be curtailed.

   The Federal Government has also expanded the definition of Federal Crimes to where most state crimes have been eliminated.  This invasion of States Rights was caused primarily by the RICO Act which was designed to allow the Federal Government to more easily prosecute the Mafia.  However, Federal prosecutors have found that this broadly written law can be used to prosecute white collar criminals.  Unfortunately, the way the law is written, they don’t even need to be convicted of a crime.  The Federal prosecutors use technical violations that, prior to RICO, would have resulted in fines.  Instead of the law defining the crime, federal prosecutors are defining the crime, which clearly violates all constitutional norms. It is reminiscent of the former Soviet Union’s “crimes of analogy,” in which a “crime” could be fashioned from nearly any activity as long as prosecutors could find a law criminalizing similar conduct.  The Federal government has also made Hate Crimes a federal offense.  Virtually any crime can now be classified as a hate crime which would require federal prosecution.

You must read the article by William L. Anderson entitled “Federal Crimes and the Destruction of Law” to understand how much power the Federal government now has over every aspect of our lives.  Click on the title highlighted in red to link to this article.  You will not be disappointed!

   Now, with wetlands laws, endangered species laws and hate crimes, the Federal Government can go after numerous “violations”.  In one case, the Federal Government declared a private property a wetland because the local government had allowed a culvert to clog which resulted in the man’s property being flooded.  The Federal Government proposed fining the landowner $31,000 per day if he built on the lot.

   In another case, the Federal Government prosecuted a Texas landowner for not knowing and keeping track of all of the details of federal and international laws on endangered species.  What was he doing?  Growing orchards.  Under the Lacey Act, Congress made it a Federal crime to violate any fish or wildlife law or regulation of any nation on earth!

   The Federal Government now has the ability to regulate yard sales!

    In addition to all of this, the Federal Government has, or is considering, entering into international treaties that are as binding as Constitutional Amendments. One treaty already entered into requires the United States to comply with all laws of all countries concerning endangered species.  This resulted in the owner of a company that sold lobster tails being sent to prison for six years for packaging lobster tails in plastic bags instead of cardboard boxes as required by a Central American Country.  President Obama forced through Congress in the 2010 lame duck session the START Treaty.  It is rumored that in 2012 he will push additional treaties through the lame duck session.  Some of these treaties are the LOST (Law of the Sea Treaty) which requires the United States to give 50% of all oil and gas royalties from deep sea drilling to foreign countries.  It also allows for the governing of pollution of the oceans, including thermal pollution, which will give an international body the power to control carbon emissions in the US.

   Another treaty will make it an international crime for any country to go to war without prior approval of the UN.  It provides that the President, the Vice President and the Secretary of Defense can be held criminally responsible for any act of war not approved by the UN.  It will limit the rights of the US Navy to keep the seas open and will give the UN jurisdiction over firearms in the US.

   Another treaty will establish a code of conduct in outer space.  It states that no rocket or satellite can be launched if it has the potential of polluting space.  This means that the US will not be able to employ a missile or satellite defense system against countries such as Iran or North Korea.  It will also require that the US share our technology and to sell our weapons to foreign countries.

    Finally, under the Rights of the Child Treaty, the US will be forced to increase foreign aid to poorer countries and provide a minimum level of food, clothing and shelter to all children throughout the world.  You need to read the book “Atlas Shrugged” by Ayn Rand to understand the implications of these treaties.  You will be shocked at the consequences which she foresaw 50 years ago.

The Straw that Broke the Camel’s Back

   In 2013 the Supreme Court, in one of the most outlandish decisions of all time, ruled that ObamaCare (i.e. the Un-Affordable Healthcare Act) was constitutional because it was a tax.  None of the party’s to the case argued that it was a tax.  So, how could the Court rule on an argument that was never made.  This is just another example of how the Supreme Court ignores the Constitution and searches for any argument that will justify its opinion.

   Under this ruling, the Federal Government can force citizens to do anything it wants them to do by simply taxing them for failure to comply.  They can now force you to purchase a car from Government (General) Motors.  They can force you to purchase a home and finance it through the bank of the government’s choice.  They can force your children to go to public schools.  They can force you to take a job you don’t want.  They can force you to move from the country or the suburbs into the cities (i.e. Agenda 21).

   The President assured the American voters that “If you like your doctor you can keep your doctor – period, If you like your insurance plan you can keep your insurance plan – period.”  He told us that this bill would lower the insurance costs by an average of $2,500 per family per year. He also promised the American taxpayers that he would not sign the health care bill if it added one dollar to the national debt.

   So, what actually happened?  We now know that the President lied when he said that you could keep your insurance.  Internal documents from the White House show that the President knew that 90 million households were going to lose their health care insurance.  The original bill was estimated to cost $900 billion over 10 years and it was going to rob $500 billion from Medicare.  Shortly after the bill was passed the estimated cost was raised to $1.7 trillion.  And, if these estimates are anything like the estimates on the cost of Medicare they are probably going to be 10 times higher.

    The cost of insurance premiums have gone up an average of $3,000 per family – not down by $2,500. Adding insult to injury, these new policies have higher deductibles and higher co-pays which will increase the out of pocket expenses of families even more. Men are now being required to pay for services they will never use such as pregnancy and gynecological services.  Elderly women are now having to pay for the same services.  This entire law was sold to the American people based on lies.  Now, the government has spent $600 million on a web site which doesn’t work and their answer is to simply throw more money at the problem.  The company that received most of this money was a large contributor to the Obama presidential campaign.  It has been reported that this web site could have been built for about $2 million and it would have worked!

   All of this could have a devastating effect on the economy.  Employers are not hiring new workers because they have no idea what the cost of insuring the workers will be.  Employers are shifting many full-time workers to part-time because they don’t have to provide insurance for part-time workers (for now).  These workers now have less money to spend but will have higher insurance premiums and more out of pocket expenses for health care.  That means that they will have less money to spend on food, clothing, cars, housing, entertainment, etc.  This could very well lead to another recession or even a depression.


For an excellent analysis of the Obama Care bill watch the following video from Stefan Molyneux: