Saturday, April 18, 2015

The government tries to steal raisins

George Will writes about a government program that involves
bullying and stealing property to maintain programs that make Americans pay higher commodity prices than a free market would set.

Marvin and Laura Horne walk through their vineyard in Kerman, Calif., in 2013. (Chris Hardy/For The Washington Post)
In oral arguments Wednesday, the Supreme Court will hear the government defend its kleptocratic behavior while administering an indefensible law. The Agricultural Marketing Agreement Act of 1937 is among the measures by which New Dealers tried and failed to regulate and mandate America back to prosperity. Seventy-eight years later, it is the government’s reason for stealing Marvin and Laura Horne’s raisins.

New Dealers had bushels of theories, including this: In an economic depression, prices fall, so a recovery will occur when government compels prices to stabilize above where a free market would put them. So Franklin Delano Roosevelt’s “brains trust” produced “price stabilization” programs by which the government would fine-tune the supply of and demand for various commodities. In 1949, this regulatory itch was institutionalized in the Raisin Administrative Committee (RAC). Today it wants the Hornes to ante up about $700,000. They could instead have turned over more than 1 million pounds of raisins — at least four years of their production.

They have been refusing to comply with a “marketing order” to surrender, without compensation, a portion of their production for the RAC’s raisin “reserve.” The Hornes say this order constitutes an unconstitutional taking.

...Justice Elena Kagan has wondered whether this case involves “a taking or it’s just the world’s most outdated law.” The answer is: Both. The law has spawned more than 25 “marketing orders” covering almonds, apricots, avocados, cherries, cranberries, dates, grapes, hazelnuts, kiwifruit, onions, pears, pistachios, plums, spearmint oil, walnuts and other stuff.
Read more here.

No comments: