Back in the Depression, FDR felt the need to tinker with the economy in an effort to “fix” it. This only made the economy worse, and you can read all about that in “The Forgotten Man” by Amity Shlaes and/or in “New Deal or Raw Deal” by Burton Folsom, Jr. For the mean time, just know that each time the feds have overreached their Constitutional boundaries, terrible things happen. This is applicable to the Jim Crow laws that the SCOTUS upheld, while being unconstitutional, it applied to FDR and his New Deal, and it applies today.


For now, let’s focus on one thing FDR did: he fixed prices and wages in the name of “fairness.” So, any company wanting to hire the best people was out of luck. Or were they? The law of unintended consequences comes into play at every turn. The smart employers started, for the first time, to offer “benefits” to the employees through the employer. This way, they got around the fixed wages nonsense that was killing the economy. If this had not happened, the health insurance industry would still be like the auto insurance industry, in that one’s insurance is linked to the individual, no matter where one lives. And, just like auto insurance, if the state wants to mandate that you buy it, that is their prerogative.  This is why RomneyCare is legal, and ObamaCare is not. It’s right there, in plain English, in the Constitution with its amendments.


Once this employer-based insurance was entrenched in society, it became the new “normal.” Now, if someone lost their job, they were out of luck on the insurance, also. This not only deprived people of freedom, but it also became a bigger issue in 1942.


The Supreme Court heard the case, in 1942, of Wickard v. Filburn. Filburn was a farmer that grew wheat for his family. He didn’t sell it, it didn’t cross state lines, and it had no effect on commerce, except that he didn’t buy any wheat. FDR, with his stacked court, ended up being given the green light to make this poor man destroy his crops and thus be forced to participate in commerce. This is the case the administration is citing to make people buy what they deem to be appropriate health insurance.


You have to understand that, before this, people knew what the word “among” meant. It’s “between” for more than two entities. For example, if I regulate commerce between two businesses, I only have jurisdiction for what passes between them, not what they make, offer to sell, or anything WITHIN the business. If there are more than two, then I would regulate AMONG the businesses, still not within. Capice? This is what the commerce clause states…that the feds are supposed to regulate BETWEEN each state, or since there are more than two, AMONG. Simple English, right? This was because, at the time the Constitution was written, the states were charging tariffs for commerce AMONG them. Thus, the feds told them to stop doing that because they were messing up the economy with their tariffs.


If you need more proof that this is the meaning of the word “among,” read the Federalist Papers, the Constitution, and all cases decided by the Supreme Court before 1942, when, magically, the definition of the word “among” was changed to mean “within” and so they started to regulate EVERYTHING.


Ok, here’s where we are. We now have Congress regulating what people do within their states, we have businesses offering health insurance through their employers, and we have a super crappy economy. Now, we had had super crappy economies before. But, Harding and Coolidge took the exact opposite route from what FDR and Obama are doing, and the economy was back and booming in 14 months. They cut taxes ACROSS THE BOARD*, and they cut federal spending drastically (like 40%). Even FDR’s cabinet told him what he was doing wasn’t working and was making things worse. Also, Reagan cut taxes in the 80’s and the economy perked up…but even he didn’t get the democratically controlled congress to cut the spending. But, I digress…


At this point, after the 1942 case, Congress was urged to “DO SOMETHING!” like they have been for the last few decades. So, they began tinkering with the tax code to try to fix the very problem they created. They went broke the Supreme Law of the Land, ignored it completely, and of course, made things worse. Plus, the executive made more regulations…and more regulations…and more (you see the pattern?). Now, the health care/health insurance industry is one of the most regulated industries around…and it still sucks.


Let’s play pretend and say that the federal government got out of the business of being criminals for breaking the Supreme Law of the Land. What would we have left? We would have the states that still have closed borders for health insurance. What’s the problem there?


Well, the problem is that the states are prohibiting interstate commerce. For example, if you live in CA, you have to have insurance from a company based in CA. This is true of all the states. So, if you have a preexisting condition, you have ONLY the people that ALSO live in CA to have a pool, and if you move or lose your job, you are OUT OF LUCK…all thanks to the federal government!! You can’t make a national pool. BUT! If the feds exercised the constitutional authority they DO have, they can tell the states that they have to allow the commerce to cross state lines, unimpeded. This is what was meant by “regulating interstate commerce.” With me so far?


Ok, once this happens what do you have? You have the choice, the freedom, to find fixes to this broken system. The feds, if following the constitution, would have to say, “Each state, you have to decide how to deal with health insurance in your state…but you cannot close your borders to commerce in this industry.” So, instead of having a few thousand or some tens of thousands of people with preexisting conditions, the market enlarges to tens of MILLIONS of people. The cost of that insurance plummets because the risk is lowered so drastically. The competition between companies stops being 5-6 other companies in the state to HUNDREDS of other companies all over the country, like auto insurance.


If you move, you take your insurance with you. The policy would just have to be one that complies with the specifics in each state…just like auto insurance. If you lose your job? As long as you pay your (what would certainly be lower) premium, you keep your insurance, even if you pay with your state run unemployment benefits, welfare, or whatever your state has. No need for COBRA at exorbitant rates. The rates for all insurance now plummet because the competition is fierce, just like auto insurance.


There would be so many different types of insurance, a policy for each conceivable need. It would be tailored for the individual and/or their families because the companies would have to…or go out of business.


So, while there I do not portend to solve each state’s problems, the simple solution is to allow each state, and the people therein, to solve it for themselves! I cannot solve each state’s problems…and neither can the federal government. It is illegal for me or for them to do so. It’s a CRIME.


One last thing needs to happen…the federal government must follow the constitution once again to stop giving tax-breaks for certain things (i.e. campaign contributors and the like). Each law, according to the constitution, must be equally applied to EVERY citizen, so the progressive income tax is illegal. The RATE at which a company is taxed must be the same across the board. Period. The amount they pay will go up as they make more, but the RATE must be the same. AND, giving a tax break to ANYONE is illegal because then the law is not equally applied. I’ll tackle this entire concept in another blog.


I’ll also do another blog with the commerce clause, in general, and the 10th amendment, with a dash of the 9th for good measure at another time. But, this is what I mean when the fix for healthcare is simple. I do not have the answer to the specifics, except for those problems that are unique to my area (just as your problems are unique to yours), but the simple part is that the feds MUST follow the United States Constitution or it’s a criminal activity. We must get back to understanding the supreme law of the land, or we will end up with the Congress trying to fix more of the very problems they have created.


Obamacare is illegal. If the country desperately wants it, we can pass an amendment to the Constitution that negates the Commerce Clause and changes the wording so that the federal government can be changed into a national and centralized power. Until then, the definition of the words, and their true meaning, stand.


*The highest tax bracket was 95%, which Harding took down taxes, in total, about 40%, and Coolidge continued the trend.

**Updated: I accidentally wrote that FDR had the Great Society in the first paragraph after correctly writing about his New Deal earlier in the same paragraph. This is what happens when editing with children around. 😉