Governments Shouldn’t Be In the Lending Business

Source: American Institute for Economic Research
by George Leef

“The US Constitution includes carefully written rules for the government’s spending of money. Article I provides that Congress may appropriate money to be spent for certain objectives, and then only if the expenditure is for the general welfare, as opposed to the benefit of small groups or individuals. But neither Article I nor any other part of the Constitution deals with the government’s power to lend money. Was that merely an oversight on the part of the drafters that summer of 1787? Did they perhaps intend that the government should have carte blanche to lend money as officials thought best? Of course not. The right conclusion from the omission of a grant of power to lend is that no such power was contemplated.” (06/06/24)