Reidblog [The Reid Report blog]

Think at your own risk.
Tuesday, August 16, 2005
Kelonation
I don't usually do Newsmax -- I prefer to get my right wing news from a few selected sources whom I at least respect, even if I disagree (Jawa, Wizbang, MarkInMexico, etc.) But a few days ago, NewsMax nailed it on Kelo, via a syndicated piece from Paul Graig Roberts. The bottom line -- The Kelo eminent domain case is not just flawed reasoning, its implications for private property and government control over the literal distribution of wealth are breathtaking.
Kelo does not mean the end of private property per se, but it does mean the end of anyone's secure possession, be the owner an individual or a corporation. To the extent that Americans still possess constitutional rights, Kelo could mean their end, as well.
And a few paragraphs down the road:
What if Poletown had been a Chrysler plant that GM wanted to eliminate as a competitor? Under the Kelo ruling, if GM could show that its cars are more successful and produce higher taxable profits than Chrysler's, and the eminent domain authority is not in Chrysler's pocket, GM could prevail.

Today, Toyota, for example, could seek to condemn Ford's River Rouge plant, which is known to be largely obsolete, in order to obtain the site for its own economic use. There appears to be nothing in Kelo to prevent this outcome.

Note some of the implications: According to economic theory, monopoly profits are higher than competitive profits. Kelo becomes a way to get around antitrust laws and increase concentration in the name of public benefit.
That being the case, Roberts asks, why aren't the interest groups on both sides rising up in outrage, rather than sputtering around the track for the umpteenth time over abortion? I would add, why are interest groups on the left and right flogging the justices of the peace over gay marriage? Are those things bigger than Kelo? I would say not even close. Why isn't a key question to be asked of, say, Supreme Court nominee John G. Roberts, where he stands on the right to private property?

I've been disappointed in the Democratic Party for not seizing on this issue, which is the ultimate test of the little guy's power in the face of the loaded double barrels of state and corporate power. This is an issue any liberal, conservative or Libertarian should be able to love. But maybe that's the point: it doesn't polarize the country, so it doesn't matter.
posted by JReid @ 5:17 PM  
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