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Chief Justice Roberts, Economic Fascist

July 2, 2012
Gary North, Tea Party Economist

On July 2, 1776, Congress voted for the Declaration of Independence. Most of the members signed it on July 4, although more signed over the next month.

The problem was this: a declaration of independence from King George III (and from Parliament, which was really the source of bureaucratic meddling and taxation of a staggering 1% of GDP), was that it led within six years to to massive debt, hyperinflation, and increased taxation. After 1788, it led to more of the same. It has finally led to Nanci Pelosi’s ideological agent on the bench, John Roberts.

In upholding Obamacare, which is in fact Pelosicare, Chief Justice Roberts wrote the majority opinion. He indulged in some lawyer-like deception, as lawyers are paid to do. The law specifically says that the mandatory payment for not buying insurance is a penalty, not a tax. He determined that this penalty would be unconstitutional if it were a penalty (commerce clause), so, lo and behold, it’s a tax!

This is all nonsense, of course. The government has regulated lots of things under the commerce clause, telling people what they must do, can do, and cannot do. If the Supreme Court gives any regulation a thumbs-up, the regulation continues. No single case is going to reverse the federal bureaucracy from pursuing its agenda under the commerce clause.

One man’s opinion on what the commerce clause means is merely his opinion. This opinion does not bind the federal bureaucracy or any future Court decision. It just gave Roberts a way to justify his theory of the legality of unlimited federal taxation, now to be collected as fines for not buying health insurance.

He argued that the government can now force residents and citizens of the United States to buy health care insurance that they do not want, or else face a government-imposed fine for not buying it. He called this a tax. The majority five accepted this.

To the extent that his opinion has established a precedent, Roberts has at long last legalized open economic fascism to America. Of course, it has been alive and well every since the New Deal, and really since the First Bank of the United States (1791 to 1811). But now it has been placed under the judicial umbrella of a Supreme Court decision.

Economic fascism is the doctrine that there is a government-business alliance that makes the nation wealthy or strong militarily. This idea has never had a judicial basis before. Now it does.

A tax in America prior to last week was a payment by the citizen or legal entity to an agency of civil government. Not so in the new, improved American fascism, as articulated by Chief Justice Roberts. In fascism, a compulsory payment to a private, profit-seeking entity is considered a tax. You can pay it to an insurance company, or you can pay a fine to the federal government. Take your pick. They are both taxes.

And now… the rest of the story. …..

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