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http://www.nytimes.com/2005/04/17/magazine/17CONSTITUTION.html?

 

Imagine turning back the clock on the Constitution to 1937, when laws

to protect workers and wilderness were considered unconstitutional.

Now read a story about Republican radicals who want to do just that.

But not if you're planning to sleep well.

 

 

 

April 17, 2005

The Unregulated Offensive

By JEFFREY ROSEN

 

I. Justice Thomas's Other Controversy

 

If you think back to Clarence Thomas's Supreme Court confirmation

hearings in 1991, what most likely comes to mind are the explosive

allegations of sexual harassment made by the law professor Anita Hill.

Years from now, however, when observers of the court look back on the

hearings, they may well focus on a clash that preceded Hill's

accusations -- an acrimonious exchange that few remember today.

 

Early in the hearings, Joseph Biden, the Delaware Democrat who was

chairman of the Senate Judiciary Committee, voiced a concern about

Thomas's judicial philosophy. In particular, he singled out a speech

that Thomas gave in 1987 in which he expressed an affinity for the

ideas of legal scholars like Richard A. Epstein. A law professor at

the University of Chicago, Epstein was notorious in legal circles for

his thesis that many of the laws underpinning the modern welfare state

are unconstitutional. Thomas tried to assure Biden that he was

interested in ideas like Epstein's only as a matter of ''political

theory'' and that he would not actually implement them as a Supreme

Court justice. Biden, apparently unpersuaded, picked up a copy of

Epstein's 1985 book, ''Takings: Private Property and the Power of

Eminent Domain,'' and theatrically waved it in the air. Anyone who

embraced the book's extreme thesis, he seemed to be suggesting, was

unfit to sit on the court.

 

At the time, it was impossible to know whether Biden was right to

worry. He was surely right, though, that Epstein was promoting a legal

philosophy far more radical in its implications than anything

entertained by Antonin Scalia, then, as now, the court's most

irascible conservative. As Epstein sees it, all individuals have

certain inherent rights and liberties, including ''economic''

liberties, like the right to property and, more crucially, the right

to part with it only voluntarily. These rights are violated any time

an individual is deprived of his property without compensation -- when

it is stolen, for example, but also when it is subjected to

governmental regulation that reduces its value or when a government

fails to provide greater security in exchange for the property it

seizes. In Epstein's view, these libertarian freedoms are not only

defensible as a matter of political philosophy but are also protected

by the United States Constitution. Any government that violates them

is, by his lights, repressive. One such government, in Epstein's

worldview, is our government. When Epstein gazes across America, he

sees a nation in the chains of minimum-wage laws and zoning

regulations. His theory calls for the country to be deregulated in a

manner not seen since before Franklin D. Roosevelt's New Deal.

 

After Thomas joined the Supreme Court, Biden's warnings seemed

prescient. In 1995, echoes of Epstein's ideas could be clearly heard

in one of Thomas's opinions. By a 5-4 majority in United States v.

Lopez, the court struck down a federal law banning guns in school

zones, arguing that the law fell outside Congress's constitutional

power to regulate interstate commerce. Lopez was a judicial landmark:

it was the first time since the New Deal that the court had limited

the power of the federal government on those grounds. Thomas, who

sided with the majority, chose to write a separate opinion in which he

suggested that even his conservative colleagues had not gone far

enough. The real problem, he wrote, was not just with the law at hand

but with the larger decision of the court during the New Deal to

abandon the judicial doctrines of the 19th century that established

severe limits on the government's power. He assailed his liberal

colleagues for characterizing ''the first 150 years of this Court's

case law as a 'wrong turn.''' He continued, ''If anything, the 'wrong

turn' was the Court's dramatic departure in the 1930's from a century

and a half of precedent.''

 

Thomas did not cite Epstein directly in his opinion. But to anyone

familiar with Epstein's writings, the similarities were striking.

Indeed, Thomas's argument closely resembled one Epstein had made eight

years earlier in ''The Proper Scope of the Commerce Power'' in the

Virginia Law Review -- so closely, in fact, that Sanford Levinson, a

liberal law professor at the University of Texas, accused Thomas of

outright intellectual theft. (''The ordinary standards governing

attribution of sources -- the violation of which constitutes

plagiarism -- seem not to apply in Justice Thomas's chambers,''

Levinson wrote in the Texas Law Review.) Biden's fear that Epstein's

ideas might be written into law had apparently been realized. And the

fear would continue to be realized in other courts throughout the 90's

as a small but energetic set of lower-court judges, sympathetic to

libertarian arguments, tried to strike down aspects of the Clean Water

Act, the Endangered Species Act and other laws, challenging powers of

the federal government that had come to be widely accepted during the

second half of the 20th century.

 

 

Chief Justice William Rehnquist is expected to announce his

resignation sometime this year, perhaps before the end of the court's

current term in June. Rehnquist's retirement would create at least one

confirmation hearing for a new justice, and two hearings if President

George W. Bush chooses to nominate one of the current justices to be

chief justice. At the same time, there is a political battle looming

in the Senate over seven federal appellate-court candidates whose

nominations were blocked by Senate Democrats during Bush's first term

but who were renominated by the president after his re-election. Many

liberals and centrists worry, and many conservatives hope, that the

doctrine favored by these judicial candidates is originalism, the

stated constitutional theory of Scalia. Originalists don't like

interpreting the Constitution in light of present-day social

developments and are generally skeptical of constitutional rights --

like the right to have an abortion -- that don't appear explicitly in

the text of the Constitution. At least in theory, those in the

originalist camp champion judicial restraint and states' rights.

 

But as Thomas's presence on the court suggests, it is perhaps just as

likely that the next justice -- or chief justice -- will be

sympathetic to the less well-known but increasingly active

conservative judicial movement that Epstein represents. It is

sometimes known as the Constitution in Exile movement, after a phrase

introduced in 1995 by Douglas Ginsburg, a judge on the United States

Court of Appeals for the D.C. Circuit. (Ginsburg is probably best

known as the Supreme Court nominee, put forward by Ronald Reagan, who

withdrew after confessing to having smoked marijuana.) By

''Constitution in Exile,'' Ginsburg meant to identify legal doctrines

that established firm limitations on state and federal power before

the New Deal. Unlike many originalists, most adherents of the

Constitution in Exile movement are not especially concerned about

states' rights or judicial deference to legislatures; instead, they

encourage judges to strike down laws on behalf of rights that don't

appear explicitly in the Constitution. In addition to the scholars who

articulate the movement's ideals and the judges who sympathize with

them, the Constitution in Exile is defended by a litigation arm,

consisting of dozens of self-styled ''freedom-based'' public-interest

law firms that bring cases in state and federal courts, including the

Supreme Court.

 

Critics of the movement note, with some anxiety, that it has no

shortage of targets. Cass Sunstein, a law professor at the University

of Chicago (and a longtime colleague of Epstein's), will soon publish

a book on the Constitution in Exile movement called ''Fundamentally

Wrong.'' As Sunstein, who describes himself as a moderate, recently

explained to me, success, as the movement defines it, would mean that

''many decisions of the Federal Communications Commission, the

Environmental Protection Agency, the Occupational Safety and Health

Administration and possibly the National Labor Relations Board would

be unconstitutional. It would mean that the Social Security Act would

not only be under political but also constitutional stress. Many of

the Constitution in Exile people think there can't be independent

regulatory commissions, so the Security and Exchange Commission and

maybe even the Federal Reserve would be in trouble. Some applications

of the Endangered Species Act and Clean Water Act would be struck down

as beyond Congress's commerce power.'' In what Sunstein described as

the ''extreme nightmare scenario,'' the right of individuals to

freedom of contract would be so vigorously interpreted that

minimum-wage and maximum-hour laws would also be jeopardized.

 

Any movement with such ambitious goals must be patient and take the

long view about its prospects for success. Michael Greve, an active

defender of the Constitution in Exile at Washington's conservative

American Enterprise Institute, argues that to achieve its goals, the

movement ultimately needs not just one or two but four more Supreme

Court justices sympathetic to its cause, as well as a larger

transformation in the overall political and legal culture. ''I think

what is really needed here is a fundamental intellectual assault on

the entire New Deal edifice,'' he says. ''We want to withdraw judicial

support for the entire modern welfare state. I'd retire and play golf

if I could get there.''

 

II. Glory Days

 

All restoration fantasies have a golden age, a lost world that is

based, at least to a degree, in historical fact. For the Constitution

in Exile movement, that world is the era of Republican dominance in

the United States from 1896 through the Roaring Twenties. Even as the

Progressive movement gathered steam, seeking to protect workers from

what it saw as the ravages of an unregulated market, American courts

during that period steadfastly preserved an ideal of free enterprise,

routinely striking down laws that were said to restrict economic

competition.

 

The most famous constitutional battle of the time was the 1905 Supreme

Court case Lochner v. New York, which challenged a law that was passed

by the New York State Legislature, establishing a maximum number of

working hours for bakers. The court struck down the law on the grounds

that it violated the bakers' freedom of contract, which was arguably,

but not explicitly, included in the 14th Amendment's protections of

''liberty'' and ''property.'' In a dissenting opinion, Justice Oliver

Wendell Holmes Jr. objected that ''The Fourteenth Amendment does not

enact Mr. Herbert Spencer's Social Statics,'' referring to the

celebrated Social Darwinist and advocate of laissez-faire economics.

 

Even after the election of Roosevelt in 1932, the Supreme Court

continued to invoke laissez-faire economics to strike down federal

laws, including signature New Deal legislation like the National

Industrial Recovery Act. In February 1937, Roosevelt threatened to

pack the court with justices who would presumably be more deferential

to national regulation of the economy. Within a month, the court

backed down, upholding a state law imposing a minimum wage for women

and minors. (The majority opinion noted that ''the unparalleled

demands for relief which arose during the recent period of

depression'' had dislodged old laissez-faire nostrums about the equal

bargaining power of workers and employers.) The following year, in the

Carolene Products case, the court announced that it would uphold all

economic regulations unless no reasonable person could believe them to

be rational. Today, the conventional wisdom among liberal and

conservative legal thinkers alike is that Lochner was decided

incorrectly and that the court's embrace of judicial restraint on

economic matters in 1937 was a triumph for democracy.

 

Members of the Constitution in Exile movement do not share this view.

Not long ago, I visited Greve in his office on 17th Street in

Washington. Greve, a witty and sardonic libertarian, is the American

Enterprise Institute's John G. Searle Scholar (his benefactor was a

pharmaceutical magnate), and over the course of a long conversation,

he explained that 1937 was, in his opinion, an unmitigated disaster,

resulting in the judicial abandonment of constitutional limits on

government power that are inherent in the nature of a free society and

the creation of a regulatory behemoth. As the administrative state

ballooned during the 60's and 70's, judicial deference became even

more pervasive: new independent regulatory agencies, from the

Environmental Protection Agency to the Federal Communications

Commission, began issuing a slew of regulations. To Greve's dismay,

much of the regulatory state is politically quite popular; even a

Republican Congress, he acknowledged, seems unlikely to roll back most

post-New Deal programs and regulations. ''Judicial activism will have

to be deployed,'' he said. ''It's plain that the idea of judicial

deference was a dead end for conservatives from the get-go.''

 

Now 48, Greve was born in Germany and came to embrace a libertarian

outlook during his undergraduate years at the University of Hamburg,

from which he graduated in 1981. That year, he visited the United

States on a Fulbright and ended up at Cornell for a doctorate in

government. (''I consider myself a refugee from the welfare state,''

he said with a chuckle.) His Ph.D. contrasted liberal environmental

litigation in Germany and the United States. Greve was frustrated but

also impressed by the way that well-financed liberal groups like Ralph

Nader's Public Citizen worked in the courts to expand the reach of

environmental laws, and he decided that the conservative movement

needed to create organizations that would do exactly the opposite.

 

One of Greve's goals at the American Enterprise Institute is to

convince more mainstream conservatives that traditional federalism --

which is skeptical of federal, but not state, power -- is only half

right. In his view, states can threaten economic liberty just as

significantly as the federal government. He is still exercised by the

lawsuit brought in the 90's by 46 states against the tobacco

companies, which resulted in a $246 billion settlement. ''Taking the

tobacco settlement down would have a huge public impact -- that would

push you in the right direction,'' he said, taking a long drag on a

cigarette.

 

Although Greve's liberal critics have argued that resurrecting strict

constitutional limits on federal and state powers would essentially

mean a return to the unregulated climate of the Gilded Age, Greve

emphasized that he doesn't have the Gilded Age in mind. The ''modern,

vibrant, mobile'' and global economy of the 21st century, he argued,

is competitive enough to regulate itself in most areas. Though he

envisions a role for government in protecting against egregious forms

of coercion, force and fraud, all other abuses would be regulated by

private agreements among citizens. ''I don't think much would be lost

if we overturned federal wetlands regulations or if we repealed the

Endangered Species Act, just by way of illustration,'' he said.

 

Greve expressed cautious optimism that his views will get a

sympathetic hearing from some of the federal appellate judges

renominated this year by the president. He said he is especially happy

that Bush has tapped William Pryor, the former attorney general of

Alabama. Greve noted that in one of the big Supreme Court cases

involving the limits of federal power, which ultimately invalidated

parts of the Violence Against Women Act, Pryor wrote a brief that

Greve and other libertarians greatly admired. ''Bill Pryor is the key

to this puzzle; there's nobody like him,'' Greve said. ''I think he's

sensational. He gets almost all of it.''

 

III. The Network

 

The idea of creating a network of activist conservative litigation

groups was proposed in the early 70's by Lewis Powell, a corporate

lawyer and future Supreme Court justice. In the years following the

defeat of the Goldwater Republicans in 1964, conservatives were

casting about for a new political strategy. At the same time, business

interests were alarmed by the growth of the regulatory state and, in

particular, the marked increase in environmental litigation. In 1971,

Powell wrote a landmark memo for the United States Chamber of Commerce

urging a counterattack. In addition to encouraging conservatives to

develop a systematic and long-term effort to spread their ideas in the

media, Powell recommended that conservatives should get over their

aversion to judicial activism. ''Especially with an activist-minded

Supreme Court,'' he wrote, ''the Judiciary may be the most important

instrument for social, economic and political change.''

 

At the time, Powell's idea was being echoed in California by a group

of conservatives close to Ronald Reagan, who had recently been

re-elected governor. Reagan, who pledged to reform welfare in his 1970

campaign, set up a task force to do so, headed by his chief of staff,

Edwin Meese III. The resulting reforms, which restricted welfare

eligibility and cut the state's welfare rolls by more than 250,000 in

three years, were attacked in the courts by liberal groups. Reagan's

supporters were infuriated that there were no conservative groups that

could respond in kind. ''The liberals were using the courts,'' Meese

recalled recently during a conversation in his office at the Heritage

Foundation in Washington. ''We wanted to make it a fair fight.''

 

According to a history of conservative legal activism published by

Heritage, ''Bringing Justice to the People,'' the first person to take

up Powell's challenge, in the early 1970's, was John Simon Fluor, a

wealthy Reagan supporter. Fluor was upset that environmental groups

had managed to delay the construction of the Alaska pipeline and the

initiation of offshore drilling in the Gulf of Mexico. After

conversations with fellow Reagan supporters, including Meese, Fluor

provided the seed money for the Pacific Legal Foundation, the first

conservative property-rights litigation shop in the nation. It was

staffed with members of the Reagan welfare-reform team and

incorporated in 1973.

 

Other conservative business interests quickly replicated Fluor's

model. In 1975, money from the major oil companies helped to create

the National Legal Center for the Public Interest, an umbrella

organization for several regional litigation groups. Each group's

focus was determined by its location. The most influential spinoff

group to emerge was the Mountain States Legal Foundation, financed by

the beer magnate Joseph Coors, which was set up in 1977 to challenge

federal land-use and natural-resources regulations, long a source of

political resistance in the West. (The foundation's distinguished

alumni of the period include Gale Norton, now secretary of the

interior, and Jon Kyl, now a senator from Arizona.)

 

Though these conservative groups clearly served the interests of local

businesses, they also attracted a number of libertarians, many of whom

were not always consistent supporters of big business. One of the more

thoughtful of these is Chip Mellor, who joined the Mountain States

Legal Foundation in the late 70's and is now the head of the Institute

for Justice, a libertarian public-interest law firm in Washington.

When I visited him recently at his office near the White House (with

an impressive corner view of the Old Executive Office Building), he

spoke engagingly of his youthful idealism. ''I came out of the

protests of the 1960's,'' he recalled, ''where I was dissatisfied with

the right and the left.'' He immersed himself in the writings of

Milton Friedman, the Nobel Prize-winning free-market economist, as

well as those of the libertarian novelist Ayn Rand. ''It was quite

illuminating for me to read Friedman and Rand and to realize that you

could not divorce economic liberty and private property rights from

the truly free individual,'' Mellor said. ''I came to see that

societies where those rights were taken away inevitably led to people

impoverished in monetary wealth and basic liberties.''

 

When he was a law student at the University of Denver, Mellor saw a

recruiting flier for the Mountain States Legal Foundation and was

intrigued by its mention of property rights. Sporting long hair and a

handlebar mustache, he showed up without an appointment, but hit it

off nevertheless with the foundation's president, James Watt. (Watt

would later achieve renown for his knockdown battles with

environmentalists as Reagan's secretary of the interior.) By 1982,

Mellor had risen to become the acting president of the foundation, and

he soon hired a young law-school graduate and fellow libertarian named

Clint Bolick. The two became fast friends and pledged to sustain their

passion for libertarian principles above partisan politics. (A fierce

defender of Clarence Thomas during his nomination battle, Bolick left

the Republican Party not long ago in protest over its anti-immigrant

policies and the Iraq war.)

 

Bolick, whose sunny idealism is hard to resist, still gets indignant

when he recalls how Mellor came to part ways with Mountain States. It

began when the foundation filed a free-speech lawsuit opposing an

exclusive cable-TV franchise granted by the city of Denver to a local

businessman who happened to be a friend of Joseph Coors. When Coors

resigned from the board to protest the direction that Mountain States

seemed to moving in, it set in motion a process that led, a year

later, to Mellor being fired. ''Chip and I discovered that there is a

world of difference between an organization that is pro-business and

an organization that is pro-free enterprise,'' Bolick told me

recently. ''We learned that some of the influential backers of the

movement were more pro-business than pro-free enterprise.'' After the

firing, Mellor said, he and Bolick sat in Mellor's backyard with tears

in their eyes. ''We pledged this is wrong, and someday we're going to

do it right,'' he said.

 

They soon got their chance. After stints in Washington with the Reagan

administration, in which Mellor was a deputy general counsel at the

Department of Energy and Bolick was an assistant at the Equal

Employment Opportunity Commission (then led by Clarence Thomas), the

two men, in 1991, persuaded Charles Koch, an oil and gas magnate, to

give them $350,000 a year in seed money from his private foundation to

start the Institute for Justice. (To this day, the institute does not

actively solicit corporate financing, and its $6.6 million annual

budget is far lower than those of its liberal counterparts, like the

A.C.L.U.) Before long, Mellor and Bolick had achieved victories in

lower courts for clients without deep pockets. In a series of cases,

they challenged state licensing laws that made it hard for

small-business entrepreneurs to break into highly regulated

professions. Their successful clients included limo drivers in Las

Vegas, African-American hair braiders in San Diego and casket sellers

in Tennessee. When Mellor gave me a tour of his office, he proudly

pointed out an engraved tombstone of appreciation from the casket

sellers, which sits in the institute's reception area.

 

IV. The (Other) Rights of Man

 

Defending the right of small businessmen to challenge local monopolies

may have been necessary and noble, but for the movement it represented

a small piece of the puzzle. If Mellor and Bolick and others like them

were to transform the Supreme Court's approach to the entire post-New

Deal regulatory state -- to ''resurrect the Constitution in Exile,''

as Bolick puts it -- they would have to develop a sophisticated

jurisprudential framework.

 

Early on, the movement found its intellectual guru in Richard Epstein.

In the words of Michael Greve, Epstein is ''the intellectual patron

saint of everybody in this movement.'' Like Bolick, Epstein is too

much of a libertarian purist to be a party loyalist. (''Our president

is a most inconsistent classical liberal, to be charitable,'' he says.

''He's terrible on trade and a huge spender and not completely candid

about the parlous situation Social Security is in.'') But his devotion

to -- and influence on -- the Constitution in Exile is unsurpassed.

 

''Takings: Private Property and the Power of Eminent Domain,'' still

in print 20 years after its publication, purports to specify the

conditions under which government can rightfully impose regulations

and taxes that reduce the value of private property. Drawing on the

political philosophy of John Locke, Epstein argues that before the

existence of government, individuals in what political theorists call

the ''state of nature'' have an inherent right of autonomy, which

entitles them to acquire property by dint of their labor and to

dispose of it only as they see fit through voluntary transfer of

goods. Epstein also maintains that any form of government coercion --

including taxation or other forced transfers of wealth -- can be

reconciled with the principles of personal freedom only if it makes

individuals at least as well off as they were before the tax or

regulation was imposed. Epstein's key insight, as the Constitution in

Exile adherents see it, is that economic regulations are just as

coercive as other involuntary wealth transfers. He insists that if the

government wants to reduce the value of an individual's property --

with zoning restrictions, for example -- it has to compensate him for

the lost value.

 

Moving from political theory to constitutional law, Epstein argues

that the framers of the United States Constitution recognized these

limitations on governmental power in the Takings Clause of the

Constitution, which says that ''private property'' cannot be taken for

public use ''without just compensation.'' According to Epstein, the

Takings Clause prevents the government from redistributing wealth in

any form without appropriate compensation and that a proper

understanding of the clause calls into question ''many of the heralded

reforms and institutions of the 20th century: zoning, rent control,

workers' compensation laws, transfer payments,'' as well as

''progressive taxation.'' Liberal governmental reforms could be

sustained, Epstein argues, only if the government were to compensate

individuals for the lost value of their property or to make everyone

better off in exchange for their taxes. ''This simple theory of

governance could be expanded to cover all taxes, all regulations, all

shift in liability schemes,'' Epstein wrote in an intellectual

autobiography. ''It is also the recipe for striking down the New Deal.''

 

''Takings'' made Epstein a star on the Republican circuit, and he

quickly became a favorite intellectual of Edwin Meese, then Reagan's

attorney general. (Perhaps inspired by Epstein's arguments, Meese once

announced at a Justice Department conference that a ''revolution'' in

economic liberty was a possibility.) In 1986, Meese's office contacted

Epstein and asked him to make a scholarly inquiry into Congress's

power to regulate interstate commerce. The following year, Epstein

published the results of his research in ''The Proper Scope of the

Commerce Power'' (the article that Clarence Thomas would apparently

later draw on in his Lopez opinion). Epstein argued that before the

New Deal, Congress had the power to regulate only the channels of

interstate commerce (railroads, for example) but not manufacturing,

which doesn't qualify as commerce, or the trade of goods that don't

cross state lines. The court, he maintained, was wrong, in its

landmark 1942 ruling in Wickard v. Filburn, to allow the federal

government to regulate the wheat production of a farmer who grew it

for his own consumption. (The government had argued that private

consumption was reducing demand for wheat that traveled across state

lines.) Though he dutifully noted that his conclusion ''seems

radical,'' Epstein called on the court to reverse its error by

returning to the more limited pre-New Deal understanding of Congress's

power to regulate the economy.

 

From the outset, Epstein's ideas ran into resistance from traditional

judicial conservatives. In October 1984, Epstein clashed publicly with

Antonin Scalia, his former colleague at the University of Chicago, in

a panel discussion convened at the libertarian Cato Institute. Scalia,

speaking first before a standing-room-only crowd, defended the view

that judges should restrain themselves from overturning legislation in

the name of rights or liberties not clearly and expressly enumerated

in the Constitution. ''Every era raises its own peculiar threat to

constitutional democracy,'' he said. ''The reversal of a half-century

of judicial restraint in the economic realm'' -- Epstein's stated

project -- ''comes within that category.'' As a traditional

federalist, Scalia had his own qualms about the unconstitutionality of

unlimited federal power, but he was not in favor of striking down laws

in the name of ambiguous and contestable economic rights. Scalia

argued that conservatives who had criticized earlier courts, like the

Warren court, for liberal judicial activism now faced a ''moment of

truth.'' They had to show the courage to reject conservative judicial

activism as well.

 

When Epstein heard what Scalia had to say, he threw away his prepared

remarks and delivered a spontaneous attack. Freely admitting that he

was questioning the conservative ''conventional wisdom,'' Epstein

insisted that judges should be much more aggressive in protecting

economic liberty. ''There are many blatantly inappropriate statutes

that cry out for a quick and easy kill,'' Epstein said, citing

minimum-wage laws and other ''legislative regulation of the economy.''

He excoriated the Supreme Court for refusing to strike these laws

down. ''One only has to read the opinions of the Supreme Court on

economic liberties and property rights to realize that these opinions

are intellectually incoherent,'' he concluded. ''Some movement in the

direction of judicial activism is clearly indicated.''

 

V. Permanent Exile?

 

By 1995, the Constitution in Exile movement had reached what appeared

to be a turning point. The Republicans had recently taken over both

houses of Congress after pledging, in their Contract With America, to

rein in the federal government. And the Supreme Court, by

rediscovering limits on Congress's power in Lopez, seemed to be

answering the call. For conservative advocacy groups and

public-interest law firms, the possibilities for litigation looked

encouraging.

 

In a reflection of the new mood, Douglas Ginsburg wrote an article in

Regulation, a libertarian magazine published by the Cato Institute,

calling for the resurrection of ''the Constitution in Exile.'' He

noted that for 60 years, proper constitutional limits on government

power had been abandoned. ''The memory of these ancient exiles,

banished for standing in opposition to unlimited government,'' he

wrote with a hint of wistful grandiosity, ''is kept alive by a few

scholars who labor on in the hope of a restoration, a second coming of

the Constitution of liberty -- even if perhaps not in their own

lifetimes.'' While not all the leaders of the movement immediately

embraced Ginsburg's catch phrase (Edwin Meese says that the phrase

Constitution in Exile suggests incorrectly that they have retired from

the field of battle), among some legal conservatives it became a

rallying cry.

 

The restoration did not occur. The Rehnquist court in recent years has

proved more sympathetic to enforcing limits on Congress's power than

any court since 1937: between 1995 and 2003, the court struck down 33

federal laws on constitutional grounds -- a higher annual rate than

any other Supreme Court in history. But the so-called federalism

revolution on the Rehnquist court did not deliver all of what the

proponents of the Constitution in Exile had hoped. Every time a lower

court appeared to be on the brink of successfully striking down a

federal statute with substantial political support, like the

Endangered Species Act, the Supreme Court wrote a hedging opinion

reassuring the country that the justices intended to challenge

Congressional power only at the margins.

 

''I think we failed,'' Michael Greve said flatly when I asked him

about the past decade of Supreme Court litigation. ''There are

encouraging signs that with the right strategic moves you can make

some headway, until the court looks the principle in the eye and says,

'Oh, my God,' and pulls back.'' He rattled off a series of

property-rights cases in which the Supreme Court had declared (in his

mocking paraphrase), ''Oh, no, this would be too inconvenient, too

constraining for government.''

 

During the current term, the Supreme Court has heard three cases

involving questions of economic liberty that, according to Greve,

represent the most significant tests in a decade of the power of the

Constitution in Exile movement. Kelo v. New London, which was argued

before the court in February, concerned Susette Kelo, a woman who sued

the city of New London, Conn., after it used its power of eminent

domain to seize 90 acres of property, including her house. The city

planned to turn the parcel over to a private developer in order to

increase the tax base and revitalize the city. Chip Mellor's

organization, the Institute for Justice, represented Kelo, whom the

institute's lawyers had sought out because she seemed like a

sympathetic victim. Standing before the justices, Kelo's lawyer, Scott

G. Bullock, asked the court to reject the claim that as long as the

state could point to a plausible public purpose for the taking of

private property (like increasing the tax base), it could appropriate

people's homes. Justice Sandra Day O'Connor, however, seemed

unimpressed by the suggestion that courts should second-guess the

economic judgments of legislatures.

 

O'Connor and other justices seemed similarly skeptical during the

second case, Lingle v. Chevron, U.S.A., which they heard later that

same morning. Lingle involved a challenge to a rent-control regulation

in Hawaii. Richard Epstein filed a brief for the Cato Institute that

argued that the court should abandon its longstanding presumption that

economic regulations are rational and ask instead whether the law, in

fact, makes economic sense or is simply a ''naked wealth transfer.''

 

Randy Barnett, a libertarian scholar at the Boston University School

of Law and the Cato Institute, was the plaintiff's lawyer in Ashcroft

v. Raich, another key Supreme Court showdown, which was argued before

the court last fall. Raich is a challenge to the federal government's

attempt to enforce drug laws that conflict with the effort by

California (and 10 other states) to allow the use of medical

marijuana. Barnett represented Angela Raich, a woman who suffered from

cancer that often confined her to a wheelchair but who said she felt

much better after being prescribed medical marijuana. The author of a

provocative book, ''Restoring the Lost Constitution,'' Barnett argues

that courts should evaluate economic regulations with a ''presumption

of liberty'' rather than with a presumption of deference. His book

identifies a series of regulations that he says the courts should

consider constitutionally suspect, from environmental laws to laws

forbidding the mere possession of ordinary firearms, therapeutic drugs

or pornography. ''The court has not really limited Congress's power

very much,'' Barnett says. ''But the fact that it was willing to limit

it at all has been an important principle. If it now basically throws

in the towel, it will be pretty demoralizing to this whole side.''

 

In February, a day after the Kelo and Lingle cases were argued before

the court, I phoned Epstein and asked him how he thought they had

gone. ''I think the exile's going to be a little longer after

yesterday,'' he said with a sigh. ''It's a very sad day to watch these

guys work.'' Epstein expressed confidence that even if his side loses,

the battle for the Constitution in Exile will continue at the state

level -- ''the emotional grab of those eminent-domain cases is so

strong,'' he said -- but confessed that he had little hope, for now,

in the Supreme Court. ''They really have gone back to the extreme 1937

reaction that anything that concerns the economic well-being of this

nation is simply a political matter,'' he said. ''If the Constitution

is an annoying obstacle, they'll just get it out of their way.''

 

VI. Packing the Courts

 

If supporters of the Constitution in Exile lose all three cases now

before the Supreme Court, what happens next? The general consensus,

according to Greve, is that the movement should focus its energies on

the appointment of sympathetic judges. ''I think the judicial

appointments are what matters most of all,'' Greve says. ''And Bush's

renomination of the rejected judges is a way of saying, Let's cram the

same judges back in their face. That's intended as a sign that they

mean business.''

 

Three candidates recently renominated by Bush for positions on the

federal appellate courts are sympathetic to the ideas of the

Constitution in Exile movement. In addition to William Pryor, the

former attorney general of Alabama whom Greve praises, there is Janice

Rogers Brown, a justice on the California Supreme Court and an

outspoken economic libertarian. An African-American and a daughter of

sharecroppers, Brown has been promoted by many libertarians as an

ideal Supreme Court candidate. Known for her vigorous criticism of the

post-New Deal regulatory state, Brown has called 1937, the year the

Supreme Court began to uphold the New Deal, ''the triumph of our

socialist revolution,'' adding in another speech that ''protection of

property was a major casualty of the revolution of 1937.'' She has

praised the court's invalidation of maximum-hour and minimum-wage laws

in the Progressive era, and at her Senate confirmation hearing in

2003, she referred disparagingly to ''the dichotomy that eventually

develops where economic liberty -- property -- is put on a different

level than political liberties.''

 

From Greve's point of view, another sympathizer whom Bush has

nominated for a federal appellate judgeship is William G. Myers III,

who was the chief lawyer at the Department of the Interior and a

lifelong advocate for mining and grazing interests. Democrats in the

Senate have expressed special concern about Myers's narrow view of

Congress's power to pass environmental regulations: he has criticized

the ''fallacious belief that the centralized government can promote

environmentalism'' and has denounced the Endangered Species Act and

Clean Water Act as ''regulatory excesses.'' He also helped to found

Cattlemen Advocating Through Litigation, a conservative group that

challenges environmental regulations in court. On March 17, he was the

first candidate approved by the Judiciary Committee, on a party line vote.

 

For Democrats in the Senate, a main cause of concern is not only the

principles that these judges embrace but also the potential conflicts

of interests that their loyalties can create. For example, Douglas

Ginsburg, the judge who introduced the phrase Constitution in Exile,

serves on the board of a group called the Foundation for Research on

Economics and the Environment, or FREE, which favors free-market

solutions to environmental problems. As Douglas Kendall of the

Community Rights Counsel, an environmental watchdog group, has

reported, between 1992 and 2001 Ginsburg took more than a dozen

all-expenses-paid trips, mainly to Montana, under FREE's auspices,

where he often participated in its judicial-education seminars. In

1999, a constitutional challenge to emission regulations in the Clean

Air Act was accepted for argument before Ginsburg. The lawyer who was

challenging the regulations on behalf of several industry groups,

Edward Warren, had also served on the board of FREE. Ginsburg joined

an opinion accepting Warren's argument that the emission regulations

were unconstitutional. A dissenting opinion charged the majority with

ignoring ''the last half century of Supreme Court jurisprudence,'' and

the Supreme Court unanimously reversed the decision two years later in

an acerbic opinion written by Scalia.

 

The battle over the ideologies and allegiances of appellate judges is,

of course, something of a dress rehearsal for the Supreme Court

nomination to come. Greve and his colleague Christopher DeMuth, the

president of the American Enterprise Institute, say they are heartened

by the judges reportedly on Bush's short list, many of whom they

consider broadly sympathetic to their views. ''I think the president

and his top staff have shown really good taste in their court of

appeals nominations,'' DeMuth told me during a visit to the institute,

''and when the Supreme Court opening comes up, they will be very

strongly inclined to nominate people from our side.''

 

DeMuth was especially enthusiastic about the possible candidacy of

Michael W. McConnell, a federal appellate judge in Denver and a former

University of Chicago law professor who worked with DeMuth at the

Office of Management and Budget in the Reagan administration. Greve

explained that McConnell not only has ''impeccable social conservative

credentials'' but also will ''give you a vision of federalism that

looks like the Constitution we once had, and he's intellectually

powerful enough to pull it off on the court.'' Most of the other names

on Bush's short list have similar qualities: J. Michael Luttig, a

federal appellate judge in Virginia, is a vigorous proponent of the

view that some federal environmental laws exceed Congress's powers to

regulate interstate commerce; John Roberts, a federal judge in

Washington, has also questioned whether some applications of the

Endangered Species Act exceed Congress's regulatory powers.

 

The influence of the Constitution in Exile movement on judicial

nominations is not always clear, since the concerns of the White House

often overlap with concerns of conservatives broadly sympathetic to

business interests or the concerns of more traditional federalists.

''If you mentioned the phrase 'Constitution in Exile' in White House

meetings I was in, no one would know what the hell you were talking

about,'' a former White House official, who spoke on condition of

anonymity because of the sensitivity of the topic, told me. ''But a

lot of people believe in the principles of the movement without

knowing the phrase. And the nominees will reflect that.'' According to

the former official, during Bush's first term, David S. Addington, the

vice president's counsel, would often press the Justice Department to

object that proposed laws and regulations exceeded the limits of

Congress's power. ''People like Addington hate the federal government,

hate Congress,'' the former official said. ''They're in a deregulatory

mood,'' he added, and they believe that ''the second term is the time

to really do this stuff.''

 

VII. America, Deregulated

 

If they win -- if, years from now, the Constitution is brought back

from its decades of arguable exile -- and federal environmental laws

are struck down, the movement's loyalists do not expect the levels of

air and water pollution to rise catastrophically. They are confident

that local regulations and private contracts between businesses and

neighbors will determine the pollution levels that each region

demands. Nor do they expect vulnerable workers to be exploited in

sweatshops if labor unions are weakened: they anticipate that

entrepreneurial workers in a mobile economy will bargain for the

working conditions that their talents deserve. Historic districts, as

they see it, will not be eviscerated if zoning laws are scaled back,

but they do imagine there will be fewer brownstones and more

McMansions. In exchange for these trade-offs, they insist, individual

liberty -- the indispensable guarantee of self-fulfillment and

happiness -- would flourish far more extensively than it does today.

 

Of course, there would be losers as well as winners in a deregulated

market economy, and history provides plenty of reasons to be concerned

about the possibility of abuse. Even the relatively modest

deregulation of today's increasingly global and fluid U.S. economy may

provide something of a cautionary tale. From Enron to illegal trading

by mutual funds and bid-rigging in the insurance industry, corporate

scandals are keeping consumer advocates like Eliot Spitzer quite busy.

America, at the moment, is engaged in an important debate about the

relative merits and dangers of the market economy, and the advocates

of the Constitution in Exile are aware that they cannot achieve

ultimate success without persuading a majority of the American people

to embrace their vision.

 

But a political transformation in their favor remains, for the moment,

remote, and they appear content, even eager, to turn to the courts to

win the victories that are eluding them in the political arena.

Advocates of the movement are entirely sincere in their belief that

the regulatory state is unconstitutional as well as immoral and that a

principled reading of the Constitution requires vigorous enforcement

of fundamental limits on state power. Nevertheless, it is a troubling

paradox that conservatives, who continue to denounce liberals for

using courts to thwart the will of the people in cases involving

abortion and gay marriage, now appear to be succumbing to precisely

the same temptation. If the lessons of the past 60 years teach us

anything, when judges try to short-circuit intensely contested

democratic debates, from the New Deal cases to Roe v. Wade, they may

provoke a fierce political backlash that sets back the movement they

are trying to advance. In this sense, even if the Constitution in

Exile movement manages to transform the courts before it has

transformed the country, it may find that it has won less than it hoped.

 

Jeffrey Rosen, a law professor at George Washington University, is a

frequent contributor to the magazine. He is at work on a book about

democracy and the courts, to be published next year.

 

 

Copyright 2005 The New York Times Company |

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