The Pay Czar And Illegal Acts

So, Kenneth Feinberg is ordering steep cuts in the compensation of various bank and financial executives.  Clearly there is no constitutional foundation for this incredible power grab by the White House. Mr. Feinberg, who apparently rejects the nickname of ” Pay Czar” but not the authority of the role will use this power regardless. He claims only the highest of motives. He is trying only to recoup the bail out money given to the banks already.  He is simply a steward of taxpayer funds.

Many in all positions of the political spectrum will forgive this one time intrusion. After all, they reason, the banks DID take federal money, now they have to dance to the federal tune.

I see some problems with this. First, as many accounts have shown there was little choice on the part of most of the execs who took funds. Stories abound of the closed-door pressure meeting in which GW Bushes treasury secretary essentially forced the major banks to take money, in order not to taint only one financial institution.  Secondly there was no valid authority for the Treasury to use taxpayer money to save, and essentially buy private corporations.  All this was cloaked in a blanket of  ‘temporary emergency’ but emergency is not a valid reason to void constitutional principles.

Finally history shows us that once the federal government takes a new power it is rarely surrendered.  Using the broad and nearly limitless powers found hidden in the ‘Interstate Commerce Clause’ the federal government has taken control of vast chunks of the private economy in the name of exigent circumstances and never relinquished the shackles once placed.  Using the doctrine of Eminent Domain, much private property has essentially been taken from owners simply for the benefit of others. See for example the now infamous Kelo case. The socialists in congress now will use this as a template for future action. Once the public is shown that the government has such a power, regardless of the extra-constitutional origin of such powers, the government will simply continue to use it. Saying,  ‘ well we have done it before’ is often the only justification for future abuses.

The public at large, intentionally educated to be ignorant of constitutional principles and the proper rule of law, will simply assume that as long as it is some  ‘rich guy’s bonuses’ getting clipped  they are in no danger of it affecting them.  The history of creeping use of ill gained power shows that it will be a matter of when, not if, congress begins to extend the power to regulate the pay of private citizens compensation.

Feinberg is an abomination. His power is absolute. There is only one appeal to is rulings. And Feinberg himself hears the appeal. Unlikely that he will overrule himself.

Keep the Faith.

The Rev