Category Archives: Public Policy Radar

How Not To Think About The Electoral College

This entry is part 4 of 5 in the series Federalism, Democracy And Presidential Elections

Voting MachineAn article in The Oregonian for March 12, 2009 has one of the most surreal headlines this author can recall.

“Oregon House votes to end the Electoral College” screams the headline. All efforts to find other gems like Oregon Senate Passes Bill Rescinding The Law of Gravity; Awaits Governor’s Signature With Austronaut Pen Designed For Weightlessness or Perpetual Motion Machines Now Possible As Oregon Legislature Repeals Laws of Thermodynamics came to nought. Apparently there is still at least some sense of the impossible in Oregon journalism.

Not to be too snarky, but the Oregon legislature has no more authority to end the Electoral College (EC) than it does to create the laws mentioned repealing basic laws of physics. Journalists (not to mention editors, a problem noted earlier in this series of articles) should have at least a general working knowledge of the basic design and operation of the Electoral College before being turned loose to distort the facts of stories and misinform the public on the subject.

What are the problems with the article exactly? Here’s a list-

  1. The Oregon House voted today to end the electoral college system in favor of the popular vote in electing a U.S. president-

    WRONG! The Oregon House voted to surrender it’s sovereign authority to choose electors pledged to a specific presidential candidate. Oregon already awards its EC votes on the basis of the popular vote- within Oregon. The proposed legislation would ignore the will of Oregon voters  and awards its states precious EC votes on the basis of the national popular vote winner.

  2. Four states have endorsed legislation to ban the current system, which awards all the electoral college votes in a state to one candidate-

    Where, oh where to start with this mish-mash of disinformation? First, states have no constitutional authority to “ban the current system.” What they can do is pass a law thumbing their collective noses at their own state’s popular vote to impose a tyrannical system that would hand over EC authority to choose a specific candidate to the the 10-15 largest cities in the United States. They can perform this supremely irresponsible act because states are guaranteed nearly unlimited constitutional authority to choose presidential electors in any way that suits the state. But, legally speaking, they must still appoint presidential electors. Thus, the claim that the legislature passed a bill to  “ban the system” is an egregious display of journalistic buffoonery.

    Second, not all states award their precious EC votes on the basis of the popular vote, at least not entirely. Maine and Nebraska award their share of EC votes representing their members of the Federal House of Representatives on the basis of the popular vote within that specific congressional district. The EC votes representing the 2 federal Senators are awarded on the basis of the popular vote statewide. This most fair and representative of  systems insures that the cities cannot overwhelm the vote of the countryside and a truly proportional result is achieved.

  3. “For Oregon to join this interstate compact would move the nation one step closer to making sure every vote counts in presidential elections,” said Rep. Ben Cannon, D-Portland, who carried the bill-

    Except for the voters of Oregon whose explicit wishes may very well be completely ignored in favor of the combined votes cast in New York, Los Angeles, Chicago, Houston, Philadelphia, Phoenix, San Antonio, San Diego, Dallas, Atanta, Baltimore, Boston, Cleveland, San Francisco, etc. Rep. Cannon’s quote is possibly one of the most cynical and asinine utterances we’ve seen since…well…since the last presidential election cycle.

  4. The National Popular Vote would take effect when and if enough states equaling 270 electoral votes — a majority –approve the legislation to join the multi-state compact-

    How about some details here? What does this “multi-state compact” say exactly? What are the details of the agreement? Can states withdraw? If so- how? If not- why? What happens if, for instance, Oregon voters give presidential candidate “A” 60% of the popular vote but the rest of the country give presidential candidate “B” 50.01% of the popular vote in a squeaker with obvious fraud and Oregon then awards all of their electoral votes to candidate B on the basis of the compact? What if Oregon voters strenuously or even violently object to their electoral will being thwarted? Worse yet, what if the 50.01% of the vote was completely dependent on the votes cast in a single large state, the popular votes of the remaining states in the compact going to presidential candidate “A?” Has anyone asked these questions? How about it journalists?

Frankly, this effort appears to be one of the most poorly thought out attempts to circumvent the Constitution that has come along in some time. No one seems to be think through the possible scenarios and no one seems to be taking the time to examine the original intent of the EC, beyond talking in platitudes about its being “outmoded” (and stumbling badly or suddenly remembering an appointment when asked to be specific) and the like.

Last summer this author had the privilege of teaching a class on the EC at Camp American. They  will be posting some of the more relevant sections as class samples in the next few days and we will post some of them here to illustrate that while the EC is not perfect it is most certainly superior to the grossly  ill-considered and irrational reaction to the 2000 election outcome that is the National Popular Vote movement.

Sowing The Wind- Part VII

This entry is part 7 of 8 in the series Ohio Con Con Call

Public Policy RadarRecently this author was interviewed by Dr. Laurie Roth on her nationally syndicated radio talk show. Dr. Roth was kind enough to interview me for the entire second hour of her three hour daily broadcast on the subject of the current attempts by several states to pass resolutions calling for a Constitutional Convention (Con Con). That interview can be heard here.

Dr. Roth does an excellent job of asking the questions that get at the core of the problem and why all Christian constitutionalists should be united in opposing new calls in their state legislatures that haven’t yet moved for one and working to get recission resolutions passed in those that have passed one in the last 30 years or so. Yes, that’s 30 years, not days or even months.That’s how old some of these so-called “active” Con Con calls are.

If you don’t understand why a Con Con call is such a big deal, then you might take about an hour and listen to this broadcast. And you might take some time and listen to Dr. Roth’s program. It available by audio streaming week nights from 6-9 PM Eastern Time here.

Please keep in mind that we have achieved only a temporary victory over an Ohio Con Con call. The sponsors in each house of the Ohio legislature have pledged to re-introduce the resolutions in the new sessions which are convened early in the new year. We at the Institute For Principled Policy and a network of other concerned groups across the political spectrum are pledged to keep you informed to what action is needed to stop these calls for a Con Con!

Sowing The Wind- Part VI

This entry is part 6 of 8 in the series Ohio Con Con Call

Public Policy RadarThe amount of media attention that is being generated in response to the Ohio Legislature’s attempt to  petition Congress to call a Constitutional Convention (Con Con) is an excellent indicator of a phenomena first described by Mark Twain when he said “The reports of my death have been greatly exaggerated.” Since this last general election the liberal wing of the Republican party, national and local party party leadership  and their allies in the media have been very busy declaring the conservative movement as an irrelevant anachronism which needs to be jettisoned immediately in order that the Republican “tent” be made ever larger. In other words it only needs to become more Democrat to see election success.

Prototypical is Ohio Republican vice-chairman Kevin DeWine’s announcement of the irrelevance and impending abandonment of “conservatives” who hold to their conservatism consistently, i.e. are both true fiscal and social conservatives.  Just so there can be no mistaking what he meant by it, DeWine says it not just once but twice. Note that DeWine attempts to redefine what “conservatism” is “really” composed of.  DeWine’s modern “conservatism” consists of “fiscal conservatism” which Republicans currently define as government-business partnerships (corporate welfare) minus a “distracting fixation on social issues.”

Part of the question being dealt with here is which vision of conservatism Ohio’s Christian conservative leadership will align themselves with. Will they adopt a comprehensive biblical model encompassing all facets of life (including DeWine’s concerns with “ethics”) or will they show themselves to be more interested in making friends with Republican leadership and give leaders like DeWine and the “big tent” philosophy a pass? See DeWine’s statements for yourself in the video below. Pay close attention at the 0:47 and 2:15 marks of the video.

[youtube]http://www.youtube.com/watch?v=4zzF8cCqWQI[/youtube]

So what does all of this have to do with a Constitutional Convention (Con Con) call resolution in the Ohio legislature? Well, it has to do with the political tin ear of Ohio’s conservative legislative leadership. This author was told by legislators connected to the Con Con call that one of the reasons that the resolution was done was to “unite the conservative base.” And so the legislators got their wish. Can anyone deny that conservatives in both Ohio and around the country are now united? Of course, what we are united in is our opposition to calling a Constitutional Convention. And yet the House sponsor has indicated that he intends to re-introduce the Con Con call resolution as soon as the new session starts in January, should it fail to pass this session.

Based on conversations with the sponsor, he will not be persuaded of the error of the idea that a “more strongly worded” resolution will “fix this thing” and satisfy all parties.  He appears to believe that the opposition is incapable of “properly interpreting” the facts of history, unlike the groups that have his and other legislators’ ear like the American Legislative Exchange Council (ALEC), which appears to be where the model for the Con Con resolution came from.  Don’t bother trying to find the info at ALEC’s website. It’s hidden from public eyes behind a $7000 minimum “public sector” membership wall.

All of this may show that, contrary to what they may say, the Republican “conservatives” actually believe the party leadership propaganda that we aren’t very bright and think we really have no lasting cohesion. So far the response from conservative and other groups has testified to the opposite.

As the majority of those who testified at the Ohio House Judiciary Committee stipulated, a balanced budget is a noble desire. It is also a biblical conservative principle to operate within your economic means. A balanced budget amendment is not where the problem lies. The problem is with a Con Con call to get it.

The institute For Principled Policy is currently researching a position paper explaining why the “limited” Con Con call that these well-intentioned representatives from Ohio and several other states are trying to make is an oxymoron. There simply is no such thing as a “limited” Con Con.

By historical precedent, once constituted a Con Con is a super-legislative body with no responsibility to the bodies calling it or the bodies selecting delegates to it and the authority to completely re-write the existing Constitution, including the ratification procedures that Con Con advocates are attempting to hide behind as a protective screen. That defense didn’t work in 1787-89 and it won’t work with any new constitution. The Constitution of 1789 was ratified using a self-contained ratification procedure. The ratification procedure contained in the Articles of Confederation, which required unanimous consent, was ignored. Thus, Article V of the Constitution was recognized as being in effect before it became the supreme law of the land.

Many, many are the constitutional experts who will testify to the truth of the statement made above. Thanks to Coach David Daubenmire who recently had constitutional scholar Dr. Edwin Vieira, Jr. on his Pass The Salt radio program (can be heard Saturday mornings 9:00-11:00 AM on WLRY). We have run the entire interview because Dr. Vieira gives such a potent presentation on the Constitution, especially constitutional money:  A substance that would have kept us from the current economic precipice and therefore kept us from the need for a balanced budget amendment.

Dr. Vieira is a constitutional attorney in private practice, a regular contributor to News With Views, a respected author of such books as How To Dethrone The Imperial Judiciary, and PIeces of Eight: The Monetary Powers and the Disabilities of the United States Constitution,  is Director of the National Alliance For Constitutional Money and has been published on constitutional law in publications such as Wake Forest Law Review, South Carolina Law Review, DePaul Law Review and other publications.  Dr. Vieira received his M.A. and Ph.D. from Harvard, along with graduating cum laude from the Harvard School of Law in 1973.

This author had the privilege of being invited to ask Dr. Vieira a question on this program. You can hear my question regarding a Con Con at about the 37:09 mark and hear what he thinks of the idea in the current political climate for yourself. For instance. he thinks that “…calling the proposal for a Con Con an unmitigated disaster is an understatement…”

“Thank you” to both Coach Dave Daubenmire (another regular News With Views contributor) for permission to post this interview and his help in mobilizing opposition to the Con Con call and to Jim Harrison of the Minutemen United for both getting this interview information to us for hosting preparation and for alerting the Minutemen United to the situation and keeping them apprised of the details and engaged in the process.

As badly as some behind this effort would like to paint the opponents as isolated ideological extremists, an examination of exactly who is in opposition paints another picture.  Several other groups, both prominent and small, from all over the conservative spectrum (yes, that’s right, we are not monolithic despite what the news media would have everyone believe) and all over the country are just as opposed to a Con Con as the Institute.

For instance, the necessarily rather hastily constructed coalition has had substantial support from groups like Tom Deweese and the American Policy Center and Phyllis Schlafly and Eagle Forum. Both Tom and Phyllis have been doing the conservative talk show circuit in opposition to a Con Con. Brannon Howse of the Christian Worldview Network is good example. You can hear his program with Tom and Phyllis here. Tom and Phyllis are also writing on the Con Con.

Larry Pratt of Gun Owners of America (GOA) understands what a Con Con means to the 2nd amendment and has brought GOA into the coalition of groups that is involved. 2008 Constitution Party presidential candidate Pastor Chuck Baldwin has come out in opposition to a Con Con as he has stated in this article.

Ron Paul’s Campaign For Liberty and the John Birch Society, which has fought several Con Con calls through the years, sometimes completely alone have lent their support andcontacted many.

The Ron Paul coalition, which knows something about the tactics that Republicans engage in when they want to stifle anything that looks like deviation from the party line and represented in Ohio by the Ohio Freedom Alliance, was pivotal in alerting members and getting people out to testify at the Judicary Committee hearing. They were also key players in getting the committee to allow public testimony.

Ohio Round Table has been involved in the effort to stop the Con Con as have the Ohio groups CHESCA, the Christian Home Educators Stark County Association who are fully cognizant of what a Con Con could easily mean to home educators, several Ohio county Right To Life groups, the Ohio Eagle Forum, We Are Change Ohio, The Ohio Libertarian Party, The Constitution Party of Ohio and others we may not yet have knowledge of.

Alternative news outlets are now involved as well. Both World Net Daily and News With Views have brought the Con Con call news the the world with stories in their outlets. A second story on Con Con calls in other states has just been published in World Net Daily and another constitutional scholar has checked into the debate.

Dr. John Eidsmoe of the Foundation for Moral Law says that Tom DeWeese’s analysis of the state resolutions possibly being non-rescindable may have merit. Article V of the Constitution is written in a manner leaving much room for interpretive freedom. But, he says, rescissions should be performed anyway and presumably be prepared to fight it out in federal courts.

Dr. Eidsmoe is familiar to anyone who has taken the Institute On The Constitution’s (IOTC) 12 week course on the Constitution as the constitutional expert who lectures on the classes videos. Michael Peroutka and Pastor David Whitney of IOTC and John Lofton of The American View radio show (heard Saturday mornings at 11:00 AM on WLRY and daily at 11:00 AM on WTHU) have also chimed in in opposition to the Con Con call.

Though their goals and approaches to problems can be very different if not sometimes in conflict, each understands what a Con Con could easily mean: an end to our current system of government and its replacement with who knows what. Our Senators and Representatives in the Ohio Legislature need to grasp that and therefore we need to keep reminding them to not only not vote on HJR 8 and SJR 9 but to withdraw them so that there can be no last minute surprise votes. After all, the original attempt looked very much an effort to try and sneak these resolutions through with no opposition from concerned citizen’s groups like those listed above.

Our Position On Corporate Bailouts

Public Policy RadarThe Institute for Principled Policy takes the following public position:  We are opposed to the United States Government’s proposed or attempted bailout or loan to the 3 American based automobile companies of Ford, GM, and Chrysler. 

We do not believe that it is the role of the federal government to provide financial oversight, to create a car czar, or to take over control of private industry or business.  To do so would be a major step toward socialism.  This is exactly what Karl Marx advocated the role of government to be.  We believe the role of government is to defend its citizens, to punish evil-doers, and to make good laws. 

The government has laws that cover this type of situation and those are the bankruptcy and chapter 11 laws.  We, however, are open to other creative ideas that could stimulate the purchasing of American-made automobiles, such as reducing taxes of those in the automobile industry including state sales taxes.  We could also support higher tariffs or taxes on imported parts and automobiles in order to alter the competitive balance. 

The problem with this though is that most of our American-made automobiles use many foreign made parts.  We believe there must be better answers to this dilemma than the ones proposed by Congress.  We salute those Republican Senators who are listening to the American people and opposing governmental intervention in the private sector.

Sowing The Wind- Part V

This entry is part 5 of 8 in the series Ohio Con Con Call

Public Policy RadarThe following was testimony offered before the Ohio House Judiciary Committee by Robert Owens, an attorney from Delaware, Ohio and a recent independent candidate for Ohio Attorney General.

I want to thank Chairman Blessing and the members of the committee for allowing me to speak today. My name is Robert Owens, I am a lawyer from Delaware, Ohio and I am an active member and leader in a number of Christian conservative organizations that embrace the time tested and proven concepts of limited constitutional government, free enterprise and individual liberty bestowed upon us by our creator.  I urge you to vote no on HJR 8.

Here are some of the possible results of a “run away” article 5 convention as described of by U.S. Supreme Court Chief Justice Warren Burger:

1.      Total civilian disarmament.

2.      Socialization of industry.

3.      Confiscation of private property.

4.      Torture of citizens.

5.      Suppression of the Press and of Religion

If you started this day unaware of the reasons and legal arguments of a Chief Justice of the Supreme Court that talks of a “run away” convention and,

If you started this day unaware that a totally different ratification process than what you might expect is perfectly lawful and consistent with legal precedent, and

If you started this day unaware that if a article 5 convention is called in the next two years, Nancy Pelosi and her team would get to choose how delegates are selected, how they are paid, where the convention would be held and if the convention were to be held in public or in secret. And,

If you started today unaware that Ohio would be the 33rd state in the history of the republic to call for the convention and that 34 is the magic number to forcibly trigger Congress to call the convention. Then caution is urged.

If any or all of these facts were unknown to you, please do not risk giving Congress a blank check without doing all the research.  We are talking about possible political suicide to the conservative movement.  This move must be carefully examined, not hurried through a December session without scrutiny.

One point of irony should not be missed in this process.  If Congress actually followed the Constitution, we would have a balanced budget and there would be no need for this committee to consider this resolution.  What makes anyone think Congress would be limited by new rules if it does not follow the existing ones?

The proposed convention could have devastating effects upon our American tradition of being a free people.  This tradition has made us the most prosperous nation and the most charitable nation in the history of the world.

Robert’s wife Teri also testified. Here are her remarks to the committee.

Chairman Blessing and members of the House Judiciary Committee, thank you for the opportunity to provide opposing testimony on House Joint Resolution No. 8. My name is Teri Owens and I am from Delaware, Ohio.

This is my first time testifying in a legislative committee. I don’t want to waste precious time explaining who I am because my background, ethnicity, race, religion or vocation does not matter to this issue. I speak as a citizen of Ohio, who – no matter what special interest categories I might fit into – stands to be irreparably harmed by the ramifications of calling an Article V convention. The quickness and quietness with which this legislation emerged and is moving is especially troubling because of this.

With due respect to the Sponsor, Representative Huffman, for those who stand in opposition to calling an Article V Constitutional Convention, it is not about fear, but rather wisdom.

The consensus among jurists and Constitutional scholars is that once a Constitutional Convention is called in accordance with article V, state legislatures have no authority in the method of selecting delegates and no authority to limit the scope or outcome of the convention. The only precedent for this in our nation’s history was the first Constitutional Convention, which was called to amend the Articles of Confederation. Indeed this became a runaway convention that emerged not with an amendment, but a brand new form of government and Constitution which only required 9 of the 13 states to ratify in nominating conventions rather than the consent of all state legislatures per the Articles of Confederation.

By its very nature, a Constitutional convention creates a sovereign representative body of the people and no limitation of the state legislatures or congress can restrain the delegates.

Would a Constitutional Convention become another runaway jeopardizing the political protection of the God-given rights of Ohio citizens? Is it wise to take that risk in today’s divided political climate?

Associate Justice Arthur Goldberg summed up the answer this way: “if the question is whether a runaway convention is assured, the answer is no, but if the question is whether it is a real and serious possibility, the answer is yes. In our history we have only one experience with a Constitutional Convention, and while the end result was good, the convention itself was a definite runaway.”

In addition to the dangers of a con-con, the most glaring problem with HJR 8 and its companion bill SJR 9 is that a Constitutional Convention is not even needed to address the problem cited. Applications for a Convention should only be used if a Legislature believes that the present Constitution is structurally flawed and in need of repair. An unbalanced federal budget is not the result of a “Constitutional flaw,” rather it is the result of a Congress which consistently ignores the Constitutional limitations upon its spending of federal funds.

I have emailed to all of you links to a 4 part video series called Beware: Article V which was created by legislators to help you take a closer look at the serious implications of an Article V Constitutional Convention. All four parts can be viewed at principledpolicy.com.

Chairman Blessing and members of the committee, I strongly urge you to vote against sending this bill to a floor vote. This issues comes down to whether you believe the possibility of obtaining a balanced budget amendment is worth the risk that our entire ststem of government could be changed. Chairman Blessing I know that you are a 20 year champion of a Con-Con and I especially urge you to allow your fellow legislators more time to discern the wisdom of this resolution before they are forced to vote on it.

Thank you for the opportunity to speak on this important matter.

Sowing The Wind- Part IV

This entry is part 4 of 8 in the series Ohio Con Con Call

Public Policy RadarOn Wednesday Dec. 10, 2008 a hearing was held in the Ohio House Judiciary Committee. We will be printing some of the testimony which was presented in that hearing.

The following testimony is that of Chuck Michaelis who is Executive Director of Camp American and Vice-chairman of the Institute for Principled Policy.

Thank you, Chairman Blessing and to the House Judiciary Committee members for the opportunity to testify today on House Joint Resolution (HJR) 8.

Chairman Blessing, my name is Chuck Michaelis and I am Vice-chairman of the Institute For Principled Policy. We are an Ohio-based public policy think tank.

I come before you today to speak in opposition to HJR 8. The goals of HJR 8 are noble. In this age of financial instability, rapidly rising deficits and concern about when the effects of turning on the government printing presses to bail out mortgage lenders and large manufacturers will be felt in the form of inflation, it is imperative that government be required to do what I have to do at home- live within my means.

To that end, a properly constructed balanced budget amendment to the US Constitution could very well be the answer to the financial instability our nation is currently experiencing. And while I applaud the effort I must call the committee’s attention to the fact that the calling for a Constitutional Convention for that express purpose would be, in all likelihood the first step towards an unmitigated disaster.

Historically, HJR 8 looks a lot like the documents issued by the Continental Congress in February 1787 and the documents issued from the legislatures of several states appointing delegates to the Constitutional Convention of 1787. Congress passed a resolution, based on the findings of the Annapolis Convention, a meeting of the delegations of 5 states-Virginia, Delaware, Pennsylvania, New Jersey and New York- to discuss defects in the Articles of Confederation, which called a convention of all 13 states, “…for the sole and express purpose of revising the Articles of Confederation and reporting to Congress and the several legislatures such alterations and provisions therein as shall when agreed to in Congress and confirmed by the states render the federal constitution adequate to the exigencies of Government & the preservation of the Union. (emphasis added)” The Articles had an absolute requirement that any amendments to them had to be accepted unanimously. Note that Rhode Island sent no delegates to the Con Con of 1787.

Several states that did send delegates to the Con Con were worried about what a runaway convention could do to the Articles of Confederation and the sovereignty of their states. The documents they used to appoint delegates stringently required the delegates to discuss amendments to the Articles only and, especially in the case of Delaware, forbade them to discuss the elimination of the Articles and their replacement with a new constitution. Other states that restricted their delegations from participating in elimination of the Articles included Connecticut, New York and Massachusetts.

And yet, after the first official act of the Con Con of 1787 was to agree to work in complete secret, the convention agreed to violate the instructions given by both the Continental Congress and their state legislatures. That’s the moment that the convention became a runaway. And how could it not have become one? Most Con Con historians admit that a number of delegates had the elimination of the Articles as their main objective all along. Among them Madison, Hamilton, Washington and Franklin.

When men of genius like this are appointed to an office that can only be described as super-legislative, operating in secret, ignoring legislative restrictions, responsible in reality to no one but himself can anyone be surprised when they do everything in their power to accomplish what they set out to do in the first place?

Former Chief Justice Warren Burger was asked what he thought of some of the Con Con movements of the mid- 1980’s. he said-

“I have also repeatedly given my opinion that there is no effective way to limit or muzzle the actions of a Constitutional Convention. The convention could make its own rules and set its own agenda. Congress might try to limit the convention to one amendment or to one issue, but there is no way to assure that the convention would obey. After a convention is convened, it will be too late to stop the convention if we don’t like its agenda. The meeting in 1787 ignored the limit placed by the confederation Congress “for the sole and express purpose. (emphasis added)”

Burger would be in a position to know the history, being both a Chief Justice of the Supreme Court and head of a federal committee to celebrate the bicentennial of the ratification of the US constitution in 1989 due to his scholarship on the subject.

In light of Chief Justice Burger’s opinion, I would like to ask this committee to contemplate a number of questions before deciding to become one of the several states which have active Con Con resolutions.

In the event that 34 states ask for a Con Con and Congress is then forced to call an Article V Constitutional Convention what will Ohio do if Congress uses its authority to appoint all of the delegates? Article V contains no requirement that the states be represented in a Con Con.

If the states are allowed to choose their own delegates then who will choose them? The Governor? The House, The Senate? A bi-cameral panel? A blue-ribbon commission? A plebescite? If by plebescite then who picks the potential candidates? Who can vote? All eligible electors? Taxpayers only? Or would we possibly, in the interest of “enfranchisement”, allow all citizens and potentially foreign nationals the franchise for this special election?

What would the requirements be for a candidate for delegate? Exclusively lawyers? A mix of professionals? So-called “proportional representation” of all special interest groups? Will people of strong religious conviction be excluded? What will the exact criteria for eligibility be?

What will the deliberative body look like ideologically? Will there be representation for anarchists? Libertarians? Marxists? Constitutional Conservatives? How will you know how the body is constituted? How can that possibly be controlled or should it be?

Frankly, as a constituent of this body, I think I should have some knowledge about how my representatives have planned to control these variables when there is a very real possibility that a runaway Constitutional Convention will vote to discard the Constitution of 1789 in favor of “something new.”

Can this body convince me that the bill of rights will remain intact in the event of a runaway Con Con? In light of earlier Con Con history, can you guarantee that there will still be states existing as sovereign bodies after a Con Con? Had Alexander Hamilton gotten his way in 1787 there would be no separate states. Will a potential new constitution recognize my rights as being an inalienable gift of God which government is charged to protect by Him? Or will it treat them as a gift of government to be taken away and returned on the whim of whoever holds power?

As you can see there are many questions that must to be answered and many important concerns to be worked through before a Con Con can safely be petitioned for. I’m not sure that I’m convinced that a proper amount of contemplation of these questions and their broader consequences has been considered when I observe the speed which is being employed to push this measure through the legislative process.

Chairman Blessing, I want to thank you and the members of the committee for your patience and indulgence in hearing my testimony. I would be more than happy to answer any questions you might have of me.

Sowing The Wind- Part III

This entry is part 3 of 8 in the series Ohio Con Con Call

Public Policy RadarThere will be public hearings on the Ohio House’s  HJR 8, the call for a Constitutional Convention (Con Con), on Wednesday morning Dec. 10, 2008.

Several groups like the Ohio Freedom Alliance, CHESCA and others have managed to make it possible for those of us who oppose the Con Con resolution to give testimony before the House Judiciary Committee.

If you wish to testify, please write out your testimony and make 30 copies for the House Judiciary Committee. Meet at in the Capitol Rotunda at 9:15 AM on Wednesday December 12, 2008.

Sowing The Wind- Part II

This entry is part 2 of 8 in the series Ohio Con Con Call

Public Policy RadarNow members of the Republican caucus in the Senate are joining their colleagues in the House of Representatives to introduce a resolution asking Congress to call a Constitutional Convention (Con Con). The resolution is Senate Joint Resolution (SJR) 9. You can see the text of the resolution here.

Like it’s brother in the House, the Senate version displays a lack of knowledge of historical precedent regarding the calling of a Con Con.  And like its brother in the House it looks as if the Senators are trying desperately to avoid being confused by the facts that might be raised by public testimony and the necessary delay caused by careful deliberation of the possible consequences of the calling of a Con Con (see part I).

Ohio Senators and Representatives believe that they can control the proceedings of a Con Con by the mere passage of a resolution which purports to restrict any Ohio delegation to discussing matters relating to a balanced budget amendment. As former Chief Justice Warren Burger said in a letter written to Phyllis Schlafly

…there is no effective way to limit or muzzle the actions of a Constitutional Convention. The convention could make its own rules and set its own agenda. Congress might try to limit the convention to one amendment or to one issue, but there is no way to assure that the convention would obey. After a convention is convened, it will be too late to stop the convention if we don’t like its agenda. The meeting in 1787 ignored the limit placed by the confederation Congress “for the sole and express purpose.”(emphasis added)

The video series (in 4 parts) attached below is an excellent argument refutation of  the idea that state legislatures and even federal legislatures can in any way control what happens in any Constitutional Convention. It was designed for the viewing of state legislators who are embroiled in Con Con resolution debates. Delegates to a Con Con once chosen become super-legislators who answer to no one but themselves for their proposals.

[youtube]http://www.youtube.com/watch?v=za8_pdJ1dPo[/youtube]

[youtube]http://www.youtube.com/watch?v=flHJrcdfbBg[/youtube]

[youtube]http://www.youtube.com/watch?v=ly1Lh3bqtYM[/youtube]

[youtube]http://www.youtube.com/watch?v=Z5jKAlgvCgg[/youtube]

Granted, any new document would have to go through a ratification process, however fighting a new Constitution would be a long, hard, ugly and expensive battle which is guaranteed to leave the nation split along ideological lines. It is not difficult to envision civil unrest, riots or even civil war as a result of any re-writing of the current Constitution. We need to stop this before it starts.

How Can I Get Involved?

Please contact your Representatives and Senators by phone TODAY! It is imperative that Ohio not call for a Con Con. It appears that we would be the 33rd state to make such a call (3 or 4 have rescinded but Congress often ignores rescisions) with only 34 necessary to force Congress to call a convention under article V of the Constitution. If you don’t know how to get their phone number click here to go to the Ohio Legislature website. Follow the easy instructions to get their names. Once you have the name, click it to go to the representative’s or senator’s website where you can get their phone number. Pick up the phone and call. Ask to speak to the representative. Tell whoever takes the phone call politely but firmly that you want them to vote no on HJR 8. They may ask why and you can politely explain what you’ve learned here.

These resolutions are fast-tracked with the wheels greased. The time to act is now.

Sowing The Wind

This entry is part 1 of 8 in the series Ohio Con Con Call

Public Policy RadarFor they sow the wind, and they shall reap the whirlwind. The standing grain has no heads; it shall yield no flour; if it were to yield, strangers would devour it.- Hosea 8:7

Members of the Republican caucus in the Ohio Legislature have decided the time is right for a Constitutional Convention (Con Con). A new resolution House Joint Resolution (HJR) 8 has just been introduced which petitions the US Congress for the calling of a Con Con. In the resolution the purpose is ostensibly to bring before Congress a balanced budget amendment to the US Constitution. Indeed, the resolution is crafted with a limitation on Con Con members which only permits them to discuss a balanced budget amendment and forbids any other discussion. On its face it appears to be a noble effort.

Unfortunately, the resolution displays a gross ignorance of constitutional history, reveals a dangerous naivete regarding how a Con Con would be constituted and reveals a political tin ear regarding the current political and social thought in the United States.

Historically, the original Constitutional Convention in 1787 was called specifically to amend the Articles of Confederation, not to write a new constitution. In fact, many states were so fearful of a complete restructuring of government with a shift of power from the states to a central government that they passed resolutions requiring their delegates to discuss amendments to the Articles ONLY and specifically forbade them to discuss core changes to the Articles or to re-draft them. It is interesting to note that the first act of the Constitutional Convention was to agree to act in complete secret. The second act was to debate the restrictions from state governments regarding discussion of re-drafting the Articles and to declare the Articles of Confederation as null and void. The convention agreed in one fell swoop to ignore state restrictions and to scrap the Articles. So much for state legislative restrictions on Con Con delegates.

Practically, how do these well-meaning legislators hope to control who is chosen as delegates to any Con Con? How will these delegates be chosen? What will be the criteria for their selection? What are the requirements regarding their areas of expertise? Will they appointed by the legislature? By the Governor? By a “Blue Ribbon Panel of Experts (God help us!)?” By a plebescite? If by plebescite, then who would be eligible to vote? All registered voters, even those with no address other than a park bench or overpass as in the 2008 Ohio elections? Property owners? Welfare recipients? Temporary residents like college students? Will the mentally deficient and senile vote be as coveted as it has been in presidential politics?

With all of this in mind what will the result of any Con Con be? You can rest assured that the United States would no longer be under the Constitution of 1789. There will be a new constitution if a Con Con is called. We are neither prophets nor can we read tea leaves, tarot cards or the entrails of chickens (nor would we due to the occultic nature of the acts). We do have a eye to see and ears to hear the current political and social thought in American society.

The new government that would emerge from a Con Con would look nothing like the brilliant design we currently have. Like our bicameral legislature? Kiss it goodbye. “Experts” have been pining for a parliamentary form of government for many years, the fact the founders rejected this form notwithstanding. And that “new” parliament will have “reserved seats” for different ethnic and other “groups,” another fantasy that has been on government “experts” wish-lists for decades.

Kiss the second amendment goodbye, in favor of a “collective” right to self-defense, meaning no private ownership of firearms or other weapons. Only police and armed forces (not to mention criminals) will have guns. Kiss the much battered and abused 4th and 5th amendments goodbye. Watch for the 1st amendment to be “revised” into a meaningless jumble of verbiage which any court can feel free to misconstrue at will. The same for the rest of the Bill of Rights.

State sovereignty as guaranteed in  the 9th and 10th amendments and article IV of the Constitution? An archaic idea whose time has passed in a modern world. It will be chucked in favor of wording which would allow easy melding of the United States of America with its northern and southern neighbors into a United States of North and South America as part of a regional world governance scheme under the UN.

Look for the concept of individual rights as an inalienable endowment from an omnipotent Creator who has endowed government with the power of the sword to protect those rights to be put aside as an anachronistic relic of a bygone era. It will be replaced with the ancient/modern concept of the collective right, awarded and enforced by government, not for the protection of the individual from predation by government and his fellow citizens but for the “benefit of the many” and the “common good,” euphemisms for forcible confiscation and redistribution of wealth and suppression of liberty. Or, in other words, what the founders called “tyranny.”

One doesn’t have to look further that the bank bailouts and the election of an open Marxist to the presidency to see that the United States is no longer a nation which thinks in terms of individual rights and responsibilities as it did in 1787. God is no longer the providential provider and protector of the needs, wants and safety of His people, it is now believed to be government which performs these services.

Any document crafted by committee dealing with philosophical and social issues will reflect the philosophical and social thought of the documents drafters and those who will modify and ratify that document. It is certain that any new constitution will be a reflection of the dominant philosophical views of whoever is chosen as delegates to the convention and the ratifying bodies and from our perspective the line up of potential representatives looks pretty bad.

All true conservatives want a balanced budget but not at the price of a revolutionary change in our system of government. And, if truth be told, what we will get from a con con is a new constitution without the balanced budget. In fact the new constitution will undoubtedly eliminate the article I restriction to the coinage of real money, something the federal government has been ignoring since the early 20th century and in some cases before. Thus what looks like a great idea at the front will fall victim to the law of unintended consequences and destroy the vestiges of liberty which remain.

OK, but what can I do about it?

What you can do about it is contact your state legislators and senators- TODAY! By telephone! Don’t know who your representatives are? Not a problem. Click here to go to the Ohio Legislature website. Follow the easy instructions to get their names. Once you have the name, click it to go to the representative’s or senator’s website where you can get their phone number. Pick up the phone and call. Ask to speak to the representative. Tell whoever takes the phone call politely but firmly that you want them to vote no on HJR 8. They may ask why and you can politely explain what you’ve learned here.

Remember, this is scheduled for hearings and a vote on this coming WEDNESDAY! Act fast!

YES On State Issue 5

This entry is part 4 of 5 in the series 2008 Election Issues

Voting MachineOne of the two most contentious issues on Ohio’s Fall 2008 ballot is Issue 5. In 1995 Ohio’s legislature foolishly repealed the existing usury laws. In the wake of that action hundreds of so-called “payday” lenders popped up all over the state, usually in or near areas where predominantly lower- to lower middle class workers reside.

Just a few years ago, Ohio passed very tight new bankruptcy laws. The combination of tighter bankruptcy laws and the repeal of usury laws have created an economic atmosphere in which usurers can flourish. And have they ever flourished. The number of payday lenders grew by more than 1500% since 1996 from 107 to 1638 in 2007. Between 2006 and 2007 the number of Ohio’s payday lenders grew by 76 or over 5%1.

Taking advantage of Ohio’s current law which allows a 391% Annual Percentage Rate (APR) ceiling (this is for a two-week loan. A 10 day loan can be as high as 548% APR2 due to the decreased loan duration and subsequent increase in annual repayment periods ; to be fair a loan at the $800 cap is “only” 367% APR3) and an $800 borrowing cap, Ohio’s virtually unregulated payday lenders are reaping huge revenues from their chosen targeted customer base. And just who is that base? Those who can least afford it, naturally. People who have limited or no access to other kinds short-term credit- credit cards, equity in real property, acceptable credit rating (or in the case of young people new to the job market and college students, any credit rating) people in low-income jobs (seasonal employees, etc) or on a “fixed-income (retirees, injured and disabled workers4).” A favored target of payday lenders is families of enlisted military, whose pay rates tend to be dismally low. In many states payday lenders cluster near military bases. Or they used to. The federal government recently (2006) capped loans to soldiers and their immediate families at 36% and most payday lenders have moved on to greener pastures like subsidized housing.5 So much for noble payday industry claims of “just being there to provide a necessary service.” Only if the interest rate is in the triple digits as we will prove later.

What payday industry watchdogs say about the industry-

Morgan Stanley IPO Analysis of Advance America:

The Georgetown study reveals the long-term nature of much payday lending. At a 300 percent APR, the interest on a payday advance would exceed the principal after about four months. In these circumstances, the loan starts to look counterproductive: rather than bridging a gap in income, the payday advance may contribute to real financial distress. Advance America’s disclosures show that repeat borrowing is important. [emphasis added]

FDIC Center for Financial Research:

‘We find that high-frequency borrowers account for a disproportionate share of a payday store’s loan and profits.

Ernst & Young Analysis of Payday Lending Business Model:

The survival of payday loan operators depends on establishing and maintaining a substantial repeat customer base.’

Michael Stegman’s “Payday Lending: A Business Model that Encourages Chronic Borrowing” – Economic Development Quarterly:

The financial success of payday lenders depends on their ability to convert occasional users into chronic borrowers.

What the Payday lenders themselves say-

Stephen Winslow–Former Harrisonburg, Virginia Payday Store Manager:

This industry could not survive if the goal was for the customer to be ‘one and done’. Their survival is based on the ability to create the need to return, and the only way to do that is to take the choice of leaving away. That is what I did.6

My customers were not stupid or ignorant – they were in crisis. I ended any ability they may have had to overcome that crisis by putting the final nail in their financial coffins.7 [emphasis added]

Rebecca Flippo – Former Virginia Payday Store Manager:8

These companies feed on the people living on a paycheck-to-paycheck basis.The customers who do come in and repay the loans take out another loan right then almost every time.They want to create a dependence on their services so the customer is forced to reissue the loan on every payday.

We saw most of our customers every month.

We really played down the APR. We disclosed it, but we played it down.[emphasis added]

What the Bible has to say about deliberate gouging those who can least afford it-

If you lend money to any of my people with you who is poor, you shall not be like a moneylender to him, and you shall not exact interest from him. Ex. 22:25 ESV

Take no interest from him or profit, but fear your God, that your [poor] brother may live beside you. You shall not lend him your money at interest, nor give him your food for profit. Lev. 25:36, 37 ESV

You shall not charge interest on loans to your brother, interest on money, interest on food, interest on anything that is lent for interest. Deu. 23:19 ESV

Whoever multiplies his wealth by interest and profit [That is, profit that comes from charging interest to the poor] gathers it for him who is generous to the poor. Prov. 14:31 ESV

Though the exegesis of this is well beyond the scope of this article (see Gary North and R.J. Rushdoony for an expansion), the Bible doesn’t condemn interest bearing loans for commercial purposes. The Institute For Principled Policy believes in the basic economic premise that market forces should set interest rates for commercial loans under normal circumstances. However, the Bible does strongly condemn the lending of money at interest, especially at rates that are condemned as usury under any circumstances except extreme hyperinflation, to those in society least able to repay the loan for reasons that are obvious. Truly, the book of Proverbs states it most eloquently

The rich rules over the poor, and the borrower is the slave of the lender [emphasis added] Prov. 22:7 ESV

Compare the verse above with the highlighted part of Steven Winslow’s quote above. The payday lenders know they are a lender of last resort (i.e., the bad players are little better than loan sharks) and they are fully aware that most of their customers are unable to repay within the normal 2 week window without creating either a severe financial hardship or taking out another loan at the same usurous interest rate. That is why payday lenders specifically target a specific demographic of borrower. Why would anyone with a credit card or home equity loan capped at no more than 36% APR borrow from a payday lender at 391% APR in an emergency?

Currently there is no mechanism for making 0% bridge loans to needy borrowers. The Progressive movement and its influence on policy making, has resulted in the takeover of church functions like charitable loans, feeding, clothing, housing and educating the needy through the old church tithe agencies by the government, complete with gross over-taxation, nearly completely. Therefore, the biblical concept of equity provides for the private-enterprise establishment of a system to provide loans at reasonable cost and under reasonable repayment conditions for those who have fiscal emergencies but have no other recourse.

Unfortunately, the lenders have completely failed to govern themselves, as illustrated by the earlier quotes and, more importantly, the statistics which show that unscrupulous lenders know a cash cow ripe for milking when they see one.

Here are some interesting numbers9. Statistically, the average Ohio payday loan is $328. The average interest rate is 391% with a two-week interest due payment of $49.33. But as we have noted, the payday industry thrives on and cultivates repeat business. The average payday borrower visits a single location 7.4 times per year. This means that the average borrower pays out $365.01in interest alone on top of his original loan amount of $328 or more than 111% of the original. But that doesn’t end the story. That same borrower doesn’t just visit one payday store front. On average, he visits 1.7 per year. That means that the 7.4 times he visits a single shop has to be multiplied by 1.7 to get his total number of loans taken each year at the average $328. That brings the total to 12.6 loans of $328 each with an interest payout of $49.33 each, bringing the total interest only to $621.51or 189%  total interest paid. This also means that the average payday borrower is indebted to a payday lender for nearly 6 months per year!

But the situation is worse than it looks at first blush. Using data from Michigan , the state closest to Ohio’s demographic and economic numbers, we find that 94% of the entire revenue generated by payday lenders came from borrowers who had 5 or more transactions per year (pretty close to our example above and the equivalent of 75% interest only repayment). Seventy-seven per-cent of their revenue came from borrowers who had 12 or more transactions per year (very close to the example). Eight per-cent of Michigan customers had 30 or more transactions but they accounted for 27% of the revenue of Michigan payday lenders. In other words, a small but significant percentage of borrowers were indebted with one loan for the entire year, and a second loan virtually certainly with at least one other payday lender for at least part of the year and paid 450% or more in total interest. That’s $1476 or more in interest alone for a $328 loan. If that’s not usury then what is?

Here’s the bottom line. Low-income payday borrowers are easily trapped in a cycle of debt by extremely high interest rates and very short pay-off times from which there is virtually no escape.10 It’s designed that way by testimony of former and present industry insiders and industry analysts

The financial success of payday lenders depends on their ability to convert occasional users into chronic borrowers.11

Irrespective of whether the repeat transactions are cast as “renewals,” “extensions,” or “new loans,” the result is a continuous flow of interest-only payments at very short intervals that never reduce the principal.12

– Michael Stegman, “Payday Lending: A Business Model that Encourages Chronic Borrowing,” Economic Development Quarterly

Having put to rest the false industry arguments that it “isn’t really 391% interest” by showing that, indeed it can be 391% interest and more and that the APR is a reasonable description that allows loan comparisons with credit cards, banks and credit unions, we now must deal with the question that seems to have ruffled so many libertarian feathers- the loan registry.

An analysis of HB 545 shows the following information: Under the new law loans are capped at 28% APR and borrowers are permitted only 4 loans per year, only one at a time and only 2 in a given 90 day period (this final requirement is waived for borrowers who complete a state-approved “financial literacy” course to be offered at low cost at local community colleges). The repayment period must be longer than 30 days.

And, to insure that these requirements (and a number of others borrower safeguards including seriously restrictions to the loan shark-style harassment collection methods often used by payday lenders against those whose finances they have had a significant hand in ruining) are adhered to there is a provision for the creation of a loan registry. BUT, and this is important, the registry CANNOT be used by law for any purpose other than tracking the transparency of the loan transactions, CANNOT by law contain any private financial identity information (e.g., the Social Security number of the borrower, bank ID numbers, etc.) and CANNOT by law even be created if there are less than 400 licensed payday lenders. Industry sources have made it clear that 90-95% of lenders will leave the state if the law passes.

Taking the best case scenario given by lenders would leave 10% of the current number of lenders or about 164 proprietors left to pull licenses, well under 400. Therefore, no registry.13 And if there ever is one, it will most likely be under the supervision of a contractor with experience handling sensitive records- just like a bank, credit card company or credit union!

The loan registry is recommended by groups like The Ohio Coalition For Responsible Lending because it keeps the more predatory payday lenders from playing the corporate shell game of moving loans around to corporate subsidiaries and partners to hide them from regulators, hardly an unimaginable scenario for companies who have no qualms about targeting low- and fixed- income borrowers with 391% APR interest rates. The experience of other states proves the necessity of the registry.

Frankly, we’ve left out a lot of information regarding details like interest rate and cost deception and collection methods employed by the payday industry but you can research these yourself, especially by reading Stephen Winslow’s blog site and The Center For Responsible Lending website (see footnotes below).

It is clear that the current payday lender regulation is completely inadequate to control the rampant greed and usury that creates a cycle of debt in the low- and fixed-income community which the industry targets. While the Institute For Principled Policy applauds initiative and vehemently supports the right of businessmen to conduct their chosen business, we cannot sit on our hands and say nothing as social Darwinists actively work to allow the poor to be trapped into penury and wage slavery by unscrupulous lenders. To do so would be a dishonor and curse on our own heads.

The legislation which will be approved by a “YES” vote on the Issue 5 referendum will go a long towards keeping low- and fixed-income families from disintegrating due to debt and bankruptcy and the downward spiral of family despair and destruction that often follows. It will also allow the principled players in the industry who really do want to provide a needed service stay and run an efficient and profitable business to continue to operate. It is not an outright ban, as the industry has claimed. We know this from the several other states which have been forced, as has Ohio, to regulate corporations who have allowed themselves to become no better than the loan sharks the usury laws were passed to stop originally.

VOTE “YES” ON ISSUE 5

_____________________________________________________________________________________________________________________

1 Rothstein, David & Jeffrey D. Dillman, The Continued Growth of Payday Lending, Policy Matters Ohio, The Housing Research & Advocacy Center, Mar., 2008, p. 1

2 Rothstein, p. 3f

3 Rothstein, P. 3, table 1

4 Rothstein, P. 8

5 Rothstein, P. 8

6 King, Uriah & Leslie Parish, Center For Responsible Lending, Springing the Debt Trap: Rate caps are only proven payday lending reform Dec., 2007, P. 12

7 Winslow, Stephen, Payday Lending: A practice whose end has come, Conservative Viewpoint blog entry for May 25, 2007

8 Center For Responsible Lending, Payday Loans Trap Borrowers, video at http://www.responsiblelending.org/issues/payday/inside-the-payday-industry.html

9 Ohio Coalition For Responsible Lending Trapped By Design: Payday Lending By The Numbers, Sept. 19, 2007

10 Rothstein, P. 10, Table 5

11 King, P. 11

12 King, P. 12

13 Gakh, Max, Ohio General Assembly Legislative Service Commission Final Analysis Sub. H.B. 545 127th General Assembly