HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Wednesday, October 15, 2003
2003 Ron Paul 107:1
Mr. PAUL. Mr. Speaker, no one questions the need for the Federal Government to obtain
the necessary resources to fill its constitutional
role of providing for the common defense.
However, the federal government must fulfill
this duty in a manner that does not conflict in
any way with the Constitution or endanger republican
government. The Defense Production
Reauthorization Act (DPA), which gives almost
unchecked power to the executive to interfere
in the economy in the name of national security,
fails both of these standards. In fact,
when I inquired at the sole hearing the House
Financial Services Committee held on this
issue as to which section of the Constitution
authorized such sweeping grants of power to
the Executive, I was greeted by silence from
the expert witnesses!
2003 Ron Paul 107:2
Under this bill, the President is given authority to void private contracts in order to ensure
that federal defense priorities, as determined
by the executive, are met. The only limitation
on the Presidents judgment is a requirement
that he submits a series of findings to Congress.
The Executive also has what appears
to be unchecked authority to use financial incentives
such as loan guarantees, direct
loans, and purchase guarantees to ensure
production of items he determines are in the
national interest.
2003 Ron Paul 107:3
Congress appears to have no ability to perform any real oversight of a Presidential action
under the DPA. In fact, my office has been informed
by the Congressional Research Service
that past Presidents may have invoked the
DPA without even submitting the required findings
to Congress!
2003 Ron Paul 107:4
The wide grant of unchecked power to the Executive runs counter to the intent of the
drafters of the Constitution. The Founders
carefully limited the executive power because
they recognized that an executive with unfettered
power was a threat to liberty. In recent
years we have seen administrations of both
parties undermine the Constitutional separation
of powers via enhanced reliance on executive
orders and unilateral decision-making.
The Defense Production Reauthorization Act
provides Constitutional blessing to this usurpation
of power, and not just in areas clearly related
to national defense. For example, the
DPA has been used to justify federal interference
in the energy market. It is an open
question what other exercise of federal power
could be justified as related to defense. For
example, federal education programs has
been justified on the grounds that an educated
population is vital to national defense, so perhaps
a future president will use DPA to impose
a national curriculum!
2003 Ron Paul 107:5
I am also concerned that this bill violates the Fifth Amendments takings clause. In particular,
DPA allows the government to seize
private property by interfering with the performance
of private contracts in order to give
priority to military production. This action reduces
the value of the affected parties proprietary
interests, and thus is a taking, requiring
the government to provide just compensation
to the affected party. The Fifth Amendment intends
to assure that the government does not
unfairly burden one group of citizens in carrying
out its constitutional functions. By not
providing for just compensation, DPA allows
the executive to unfairly burden one group of
citizens for costs that the Constitution requires
be shared among the entire population.
2003 Ron Paul 107:6
In conclusion, Mr. Speaker, the Defense Production Act gives the executives unchecked
power to meddle in the economy, flying
in the face of the original constitutional
structure and endangering the very liberty it
claims to protect. Therefore, I must oppose
this bill.