Goodlatte: Government, Inc. Leads to Red Ink for Our Nation’s Small Businesses
Guest post by Congressman Bob Goodlatte (R-VA06)
Four years ago, the U.S. Supreme Court handed down its decision in the now-notorious case of Kelo v. City of New London, which authorized the government to take private property from individuals for nearly any reason under the guise of eminent domain, even to give to other private individuals or entities. The public outcry over this decision was so great that it forced states to enact laws to significantly rein in their own eminent domain powers.
Unfortunately, House Democrats did not learn the lessons of the Kelo decision. A few weeks ago, they passed H.R. 4173, the so-called “Wall Street Reform and Consumer Protection Act.” This bill would allow a team of federal bureaucrats to decide that a private business poses a risk to the economy. Incredibly, the bill then allows the federal government to take over that private business and even gives the government the right to sell off the business’ assets. What’s worse, to pay for these takeovers, the bill sets up a permanent $150 billion slush fund.
While the alleged purpose of this bill is to prevent a concentration of money and power in a small number of large corporations, the bill would have the opposite effect. Knowing that the federal government will swoop in and take over any companies that it deems “too big to fail,” creditors and investors will be drawn to lend money to the largest corporations because of the implied guarantee that the federal government will step in to repay these loans. The flow of capital will thus go to the largest corporations rather than where the money is really needed – small businesses and entrepreneurs, which are the true innovators and job creators of the U.S. economy.
The bill also creates a separate, new bureaucratic agency and bestows upon it broad authority to impose burdensome regulations on any business that lends money, extends credit or enters into repayment plans with consumers. These regulations would hit everyone from doctors and hospitals to furniture and department stores.
It is efforts like H.R. 4173 that prompted Ronald Reagan to warn us against those who would have us believe that a small intellectual elite can manage the people better than the people can manage themselves.
For all of these reasons I have cosponsored H.J.Res. 57, a Constitutional amendment prohibiting the United States government from owning or having any interest in any private company or corporation. This bill will prevent future taxpayer-funded bailouts of private corporations and help get government out of the way so that small businesses and entrepreneurs can access capital to innovate and create the jobs that are so desperately needed today.
In this case, as in so many others, government is not the answer, government is the problem. To contact me about this or any other matter, please visit my website at www.goodlatte.house.gov.
Category: Government
Loading ...
Eminent domain — or the power of “taking” under the badge of government — seems to be the new theme of the governing class, whether it is applied to water rights or property rights.
Private property owners facing the threat of eminent domain quickly learn that they are not standing on a level playing field legally, economically or politically.
Among other lessons, there is a lot of play in the “just” of “just compensation.” The power of eminent domain brings with it a sense of entitlement. At that point, property owners are merely an obstacle to be swept aside — when, in fact, they possess the key asset coveted by government and the corporation.
But property owners can fight back. Our two-year battle against Houston-based Spectra Energy which seized our property rights for an underground gas storage field led to the development of a website which has begun to attract whistle blowers inside the energy industry. We are collaborating and helping property owners in many states. For info, visit the site: http://www.spectraenergywatch.com/blog/
By the way, our new neighbor, Spectra Energy, has received two Notice of Violations for “unlawful conduct” related to emergency shutdowns and emissions at its storage field in Bedford County, PA. Reports of contaminated water supplies are on the rise since they began operations.
Like Kelo, the ripple effects of eminent domain are never over.
I have some problem with deregulation allowing entities to consolidate so that they become too big to fail. Big banks gobbled up smaller banks. Then decision making was concentrated so that one bad decision by some executive tumbled downhill in pursuit of greater profit. “Jack and Jill went up the hill…”
Why isn’t some effort made to break up the big banks that are too big to fail? Break them off into bite size chunks. We had those bite sized chunks before deregulation.
Cool, there is actually some great ideas on here some of my subscribers may find this relevant, I will send them a link, many thanks.
I wish to a new company, specifically a coffee shop, hence the online research. Reading your posts have give me some great things to think about, and I look forward to reading a lot more of what you have to share!