The federal government is looking into a radical increase of powers, including the ability to seize privately-owned firms. This precedent would go far beyond the already-existing powers of the Treasury Department. The government is justifying this by declaring that if these companies fail, then the economy fails.
Such a justification is a dangerous increase of governmental powers. The Obama Administration is looking to have the Congress rubber-stamp this proposal. The ability to seize companies without due process is counter to precepts of the Constitution. This should additionally be approved by the Supreme Court in order to prove whether or not it is Constitutional.
One of the biggest problems with this legislation is that the government could use these powers to seize other business, potentially leading to an increase of socialization. This nationalization could cause the government to take over industries deemed "vital." How long until GM, Ford, or Winchester is owned by the government?
While the chances of this is unlikely over the next several years, giving the government the power to do this is a terrible experiment. And what about our energy supplies? What if the federal government decides to seize Exxon?
Caution is required at moments like this.
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