Limited Representative Government: Prop. 8 and Racism

Californians are now just racists (like they have always been) because its citizens won't allow same sex couples to pretend they are married. Direct democracy must not be allowed, they say, only the power of the state constitution is right! Well, if the state constitution allows for direct democracy, then to what constitution do they refer? Some say that constitutions are written to protect the minority from the majority. That is not correct, otherwise no majority rule could exist, hence no democracy and no democratic republics. Constitutions in constitutional republics represent a covenant among the people as to how their laws will work. When that covenant is broken, they owe the powers that broke the covenant no allegiance.

The biggest problem with more direct forms of democracy is that important issues are fought out in sound bites (like education becoming the focus of the last month's debate). During the 1960's revision period Bernard Hyink (see page 5 of article) made a series of serious arguments against the prevalence of direct democracy in California's constitution. Californians did not want any part of returning to a more representative form of government. It is this direct democracy that is more Libertarian because it liberally gives the people greater say. A reduced dependency on an independent judiciary is another libertarian notion that arose in California as the institutions of the federal constitution began to struggle under the pressures of massive industrialization during the Civil War period.

There have been many really stupid things written into California's constitution over time, including, as some rightly point out, racist notions in bold print. These things have all been eradicated, but the principles of greater direct democracy have been strengthened.

Constitutions don't come from a Divine Being. They come from people. Good people don't come from governments; good governments come from good people. There are those, (I am not among them), that argue that even our notions of right and wrong don't originate from a Higher Power. I do believe that things like passionate self-interest, greed, and jealousy often blind some people to the voice of conscience. These people, sadly, are too often the ones that are in authority in political parties.

Some folks talk about how health care must be reformed because of greedy and corrupt doctors. My response to this has always been to throw up my hands. If the people who deliver the health care are corrupt, it's over. What can anyone do? That's how I feel about the "checked" use of a greater direct democracy in not only California, but in the nation. If the people, of whom, by whom and for whom government exists, have lost their way, what's the point?

I think, because of the federal constitution, and the language of the California constitution regarding it's subjection to the federal constitution, the objections some raise about returning to a KKK society is a read herring. I say, "I think", because San Francisco seems to have seceded from the union relative to immigration law and no one cares.

In general, it is sad that people accuse the entire populace of hate because they don't want to lie to their kids and tell them that same sex couple are married... well not really... well legally... That's a bit much. What's wrong with civil unions anyhow?

I saw a good Wikipedia article on the language of Prop. 8. After great debate, "may" and "could" were the words left in the ballot initiative concerning required teacher participation in educational programs. The Supreme Court Justices had essentially ordered teachers to lie to little children, whether students could "opt out" or not.

The constitution of California never, ever provided for making people say that same sex couples are married when they are not. Four Supreme Court judges, perhaps inspired by some vision from of Saturn in red, exercised their authority to INTERPRET the constitution (if they did more than this they dare not admit it!). The simplest way to clarify the constitution was to do the people of California did.

Proposition 8 and Revisions of California's Constitution

While some argue that the people of California are not worthy of the initiative process the state constitution liberally grants its citizens, the very heart of California's law disagrees. The ballot initiative process is not a twentieth century libertarian whim cooked up by 1960's radicals. Instead, it was adopted to directly address the challenges and pressures of a representative government in the modern era.

California's Constitution's Preamble is the usual: "We, the People of the State of California, grateful to Almighty God for our freedom, in order to secure and perpetuate its blessings, do establish this Constitution." This is a wonderful echo of the age of the founding fathers of the United States of America. However section 1 of the first article of California's constitution is not the unusual: "All political power is inherent in the people. Government is instituted for their protection, security, and benefit, and they have the right to alter or reform it when the public good may require." This has a bold and defiant tone, the tone of those who have had enough of pretense and hypocrisy. These are grave and solemn declarations. They are the words of men and women who have had some experience being vigilant in the great and ongoing struggle for liberty. Surprisingly, the rest of California's constitution lives up to these brave words. That's not usual either.

For these very self-evident reasons, any refusal by four judges to enact Proposition 8, by describing it as a revision, would to be to drastically alter the heart of California's constitution.

The Constitution of California is a living document, but its life is not ultimately in the hands of a Supreme Court, and its breath does not wait on a two thirds majority of the state legislature. California's constitution is specifically designed to live and breathe with the people of California. Nor was this done for light and transient causes. California's constitution is borne of the schools of error and hard experience in this land of opportunity.

Of all the states in the union, California has the most experience with constitutions. It drafted its original constitution in coordination with a military proclamation shortly following the Treaty of Guadalupe Hidalgo, and California redrafted its constitution only thirty years later. It was in this second draft of its constitution that California began its loathing of political authorities and its love of the initiative and referendum process. Finally, after years of committee analysis, in 1966 California used the mechanisms within the 1897 draft to significantly revise its constitution (CPS p. 3). This it did with a constitutional convention and approval of the electorate. Ultimately, the revision committee completed the final part of its revision process with a series of tailor made ballot initiatives (CPS 6). Hence, if California's constitution is one of the most liberal states in the union, it is a political path based, not on navet, but on experience. In other words, if California gives greater authority to its electorate that any other state it is because California has learned from its history. Its institutions recognize that those in authority are often as impervious to truth as they are imperfect in character. California's limits on its Supreme Court Justices, as set out in terms of recall and elective terms, is not done without a very clear understanding of the challenges to freedom that arise in every generation, even in nations governed as constitutional and democratic republics.

The problem with the founding father's notion of an independent judiciary is that our forefathers benignly believed that the check on judges would be the laws and the constitutional documents they embodied. California discovered that such a check was not always convenient. While, on the one hand, California gives its chief justice tremendous powers over the interpretation and the culture of interpretation that surrounds California's laws, the consequences of its painful experiences with the powerful forces of large business interests during the Civil War period left the people of this state with an extremely sober view of all the elements of representative government, including the judiciary. California's judiciary is one of the least independent in the nation. While judges are appointed by the governor, the judges are subject to reelection every twelve years. Furthermore, they are subject to recall at any time by way of the initiative process.

It would not be beyond imagination then to conceive of a unanimous Supreme Court decision in favor of the proponents of Proposition 8, and that is as it should be according to California law. In the United States Constitution five judges closely divided with four others in the interpretation of the federal constitution plus the silence of the legislature can equal, in practical terms, via stare decisis, an amendment or a revision or of the constitution. Of course the more divided the judiciary, the more divided the legislature, so, in the course of time, judges have often changed the constitutional rudiments of our federal laws. In California, though, the people must also remain silent for a judicial opinion, an interpretation of the law to become, via stare decisis, an amendment to or a drastic revision of the California constitution.

In the matter of Proposition 8 and Proposition 22, Californians were not silent. They thought long and hard; twice Californians have clarified the definition of marriage. This may have been an altogether silly exercise forced on them from above, but it was, nonetheless, a gracious and constitutional one. All those who oppose that definition ought to accept the verdict in the gracious spirit in which it was legally and duly offered. The definition of marriage Californians have declared doesn't harm anyone, and it does apply equally applied to all. Homosexuals may also get married to one member of the opposite sex, just like every other Californian. Californians do not hold anyone's sexual orientation against them. The people of California have never been perfect, and they are not now. California's constitution though, isn't bad. Other states ought to follow California's example of liberally granting the final say and authority to the people. After all, where do all constitutions that are worth the ink originate?

Spreading the Wealth, National Banks, and the Communist Family

Obama's plan to "spread the wealth" must destroy wealth and Europe's plan to nationalize banks will wreck the wealth of nations. These are things any good student of Marxism understands plainly. Karl Marx's vision of a workers' paradise also involved ridding society of mothers and fathers. Marxist Communism was never about utopia. It was always about totalitarianism. It's amazing how close to his vision we are getting.

Spreading the wealth around is an idea at least as old as Karl Marx’s Critique of the Gotha Program in which he wrote: “From each according to his ability to each according to his need.” To Marx this notion was a transitional principle leading to the workers’ paradise. It was part of the “dictatorship of the working class.” Ultimately, Marx desired that there would be no wealth to spread around. He desired the abolition of capital. That is, Marx envisioned the abolition of the means to relate to others in terms of employer and wage earner. It was an idea that never worked very well. Why? Have you noticed the flaw in Marxist logic? If there is no capital, there can be no wage earners, or in other words, no jobs. Therefore, Marxism leads to the absence of wealth! If you study Obama’s tax plan you can see that he desires the abolition of capital also. Even if jobs cannot be generated, even if the United States is in the middle of a recession where jobs are getting scarcer every day, Obama is sticking to Marxist transitional principles.

Although some five star generals might not like to hear it, illogical notions don’t work in the real world. Because of the failure of these Marxist ideas in practice, as well as on the drawing board, one almost suspects the motivation of anyone in any government who proposes them. On one level the motivation seems plain. The appeal of Marxism can be outwardly pleasant. When we humans don’t get what they want, it feels very unfair to us. It is easy to demand fairness instead of responsibility, and it is even easier to promise to make things fair by taking some one else’s property and making a gift of it to those who desire “fairness.” As a parent my response to the fairness argument has always been, “You bet life’s not fair, and a good thing it’s not! We live in America and other’s don’t. What’s fair about that?” Well life may be getting fair for those who live in Red China. We’re not far behind. In fact, capital seems to prefer Beijing.

By the way, some wonder whether the United States bank bailout plans will work. Interestingly, here is the fifth of the ten Marxist preconditions for a workers paradise first outlined in the Communist Manifesto: “Centralization of credit in the banks of the state, by means of a national bank with state capital and an exclusive monopoly.” Pope Paulson I, by the way, is conservative compared to the Europeans. They are completely behind Warren Buffet’s notion of buying up bank stocks to “recapitalize” them into borrowing, but Henry Paulson had to be dragged kicking and screaming to this table. Even now, he only wants to use a quarter of the cool trillion dollars printed by the congress for nationalizing banks. Will such bailout plans work? It depends on what one means by “work.” If one knows history and knows the failure of Marxist theory, one can be certain that the bail out plan will not produce wealth. However if one hates the United States because of its international prestige, its great abundance, and its liberties, and, as a student of Marxism, has been awaiting a crisis of capital to forward the communist agenda for the express purpose of ruining the wealth of nations, this bail out will work perfectly.

By the way Marx had some interesting notions about marriage as well. The Manifesto reads: “Bourgeois (an employer’s or rich person’s) marriage is (because of rampant infidelity), in reality, a system of wives in common and thus, at the most, what the Communists might possibly be reproached with is that they desire to introduce, in substitution for a hypocritically concealed (system of free love), an openly legalized system of free love. Yes, an organized force that disrupts the marriage one’s marriage was part of the plan for a worker’s paradise. So what happened to “the community of women” that would eventually bring an end to the nuclear family? Do we see such institutions in existence today? Ahhh… no. That was another failed Marxist notion.

In general though, the nuclear family appeared to be a threat to the burly bearded communist theorist. Again, the manifesto reads: “Abolition of the family! Even the most radical flare up at this infamous proposal of the Communists…” Outside of the revolutionary party’s “community of women” the destruction of the nuclear family would occur without systematic intervention (except by public schools). Once capital had been destroyed, Marx believed, of nature course the workers paradise would feature no mothers and no fathers. Although Marx claimed that “the bourgeoisie has torn away from the family its sentimental veil, and has reduced the family relation into a mere money relation,” he was wrong about that as well. No, it would be a hundred and fifty years before the Supreme Court of California, not the bourgeoisie, did this. Even if you don’t like McCain or Obama, Californians should get themselves to the polls and vote “Yes” on Proposition 8.

A careful read of the Communist Manifesto will reveal its ambitious aims to amass the power of the state in the hands of the few. This, not a workers’ paradise, is what following the Manifesto’s outlines have always achieved for those who have used its perverse arguments to their advantage. If you’ve ever wondered why America, despite its tremendous powers of innovation, has been increasingly in debt, in the red, since World War II, consider some of the other preconditions for Marxist communism that were first set out in 1847. Precondition #2: A heavy progressive or graduated income tax. Precondition #3: Abolition of all rights of inheritance. Precondition #10: Free education for all children in public schools… That’s why we need the flat tax, school vouchers and to protect traditional marriage. We need to say no to the Obamanation.

Free Markets, Crashes, and Other Parables

“We have now entered the final phase of the boom-bust cycle--the search for villains for past ill deeds and the search for reforms to prevent future calamities. But in the panic to sell shares in U.S. companies, investors are deaf to good news about the resilience and productivity of the American economy just as they were deaf to bad news at the height of the market euphoria.” These words, penned by Laura Tyson in her 2002 article, “After Irrational Exuberance, Irrational Pessimism” are, once again, almost completely relevant to today’s market. Perhaps what’s missing is the good news. Oil going down is apparently something approaching a positive, but that’s it. However, because of the consistency of human deafness to market fundamentals, Ms. Tyson’s article is almost always partially relevant. Here’s the sad little story rife with truths.

From 2003-2005, real estate, like the equity markets of the late 1990’s, had that peculiar reek of impending disaster that emerges from willful ignorance to market forces by those who should know better. A March 2008 REIT Wrecks article commendably explores the death of real estate’s canary: in 2005 rental occupancies fell despite declining rents. The article, “Play Subprime Safely With These Residential REITs” carefully exposes the Spiderman-like tingling those who specialized in rental properties had. They could smell the gas of the broken main. They knew that all that was driving real estate was the money supply. The loan amounts kept increasing as the credit requirements decreased. The only impediment to receiving the cash was having a residential deed to sign.

Interest rates finally began to rise, but they were answered with more easy money. After all, the changing bankruptcy laws of 2005 (making Chapter 7 debt forgiveness more difficult to come by) meant that more foreclosed assets would be available to offset these bad loans. Even more importantly, as far as the speculative eye could see more and more non-standard loans were coming down the pike. Hence, real estate had to continue to rise as the free money bid them well above their actual values. If real estate had to continue to spiral upwards, then even foreclosed properties would be worth more than the original assets. Hence, easy loans were more easily packaged into marketable “securities” that, based on an implied connection between Fannie, Feddie and the Feds, met only the most cavalier inspections. Who’d know? Who’d say anything? The only evidence of this covenant with disaster would be the mushrooming commissions on portfolio mangers’ Christmas bonuses.

However, even the “victims,” those with no credit who took exorbitant interest rates hits, laughed out loud as they signed and swore on a thousand dotted lines. Even they thought they’d hit the Vegas craps. “Why worry?” they thought; they could to sell for a 15% profit in a year. That would be more money in one place than they’d seen in their whole lives! Everyone was doing it… Then oil hit the roof, and the predatory lenders headed for the high grass. Everyone knows the rest.

Just as in the dotcom bubble, those who should have known did know. But why pull the fire alarm and alert the police? Instead, lawless bands of speculators who knew better, weren’t betting on the American dream. No, they were betting they could get out of town before the three alarm conflagration was noised abroad. The parable? Markets don’t need corrections, people do. The moral: unregulated markets will result in great prosperity only in proportion to the sense of responsibility and the recognition of the ethical source of prosperity owned by those that participate.
California, here’s the allegory: As free markets are to ethics, so is a great nation’s government to the truth. As the real estate fundamentals were eroded by senseless monetary expansion, so the credibility of our government will be eroded if we enshrine lies in our laws. Vote “Yes” on Proposition 8.

As depressing as today’s corruption of our markets may be, it has a precedent. As Frank Shostak discusses in his article, “The Prophet of the Great Depression,” two Austrian’s, Friedrich Hayek and Ludwig von Mises, based on their theories of credit expansion, predicted the Roaring 20’s would end calamitously. The Austrians used a cool math based on exchange rates, but the reality is that no wizard-like forecasts are required. Indeed, even the victims of this latest real estate credit bubble knew what they were up against. They knew they were at cross purposes with the basic principles of responsibility, ethics, and, hence, genuine prosperity. We all finally got what all involved already owned.

Individuals cannot live a lie and escape the consequences. Don’t try to tell such people however, for you will be mocked to scorn. Likewise, societies cannot live a lie and long endure. But what if that lie is consecrated by the consensus of one’s fellow creatures, as was the run on equities in the 1920’s and the run on real estate in the twenty-first century? It doesn’t matter; such a nation and such a person cannot prosper. Even if so many thrill with the lie that one might say the lie is “normal,” a lie it is nonetheless, and who are so heedless cannot prosper. Whether it is abandoned at the church door or at the cork of those spirits that cry “you can’t prove it!” discard reason at your peril.

A Rewrite of the California Constitution I Missed

Connor Boyak on posted a great article on his blog at:http://www.connorboyack.com/blog/the-protected-class-of-sexuality.

He does a great job pointing out that "re Marriage Cases" has profoundly changed the Constitution and the law of California by adding "sexual orientation" as a protected class with regards to equal rights. Sexual orientation is not a race, a gender or a religion. Despite all the whining from liberals, sexual orientation is not, constitutionally, a civil rights issue. There are laws on the books in California that do, however, recognize sexual orientation as a "protected class." Judge George in "re Marriages" uses this language written by the California legislature as enough of a reason to rewrite the Constitution of California:

“[e]xpanding the rights and creating responsibilities of registered domestic partners would further California’s interests in promoting family relationships and protecting family members during life crises, and would reduce discrimination on the bases of sex and sexual orientation in a manner consistent with the requirements of the California Constitution."

He is also correct about the serious impact that this has on jurisprudence in California. As as dissenting Jurist Baxter wrote on page 22 of his dissent:

"As the majority also notes, the issue is one of first impression in California. I find that circumstance highly significant. Considering the current status of gays and lesbians as citizens of 21st-century California, the majority fails to persuade me we should now hold that they qualify, under our state Constitution, for the extraordinary protection accorded to suspect classes" (my emphasis).

Connor is correct. It's time for Proposition 9: "Equal protection laws in California only apply to race, religion, and gender."

Meanwhile, a "Yes" vote on Proposition 8 will reduce a great deal of the damage this Court has done.