Sandy is correct to state that federal funds for a localized disaster
violates the original understanding of the 'general welfare' clause, as
evidenced by the belief by a prevailing majority in Congress that it had
no constitutional authority to come to the aid of Savannah after a fire
destroyed that city.

We discussed this very question at length at the Spending Clause
Symposium a few years ago at Chapman Law School.  Interestingly, Richard
Epstein suggested (during the discussion, not in his published article,
which was on standing doctrine) that there might well be a difference
between after-the-fact aid, which benefited only a single locale, and an
a priori insurance package, which is something like what we now have
with FEMA.  True, the private insurance market would probably allocate
risk better, but some of the "premium differential" that the private
market would impose is already being paid by California, in a way, in
the form of a greater differential between taxes paid FROM Californians
to federal dollars received BY California than exists in many other
states.  If it was truly run like a national insurance program, with
different "premiums" for different risks (how many times are we going to
pay for the rebuilding of fancy homes on the outer banks of North
Carolina, for example?), then it might qualify as a valid "general
welfare" expenditure.

Anyone interested in more on this debate, the entire Symposium issue is
available at http://www.chapman.edu/law/students/volume4.html

Cheers,
John Eastman

-----Original Message-----
From: Sanford Levinson [mailto:[EMAIL PROTECTED]
Sent: Thursday, October 30, 2003 12:41 PM
To: [EMAIL PROTECTED]
Subject: Re: WELFARE, FOREST FIRES, AND THE CONSTITUTION

I am genuinely curious as to how political and constitutional
conservatives
justify taxing national taxpayers in order to pay for eminently
foreseeable
disasters in California.  (I keep hearing that these are the most
serious
forest fires in ten years.  One of the things this tells me is that a
lot
of California is built on the equivalent of ten-year flood plains.
Isn't
this really quite irrational, and shouldn't people who do such things be
responsible for purchasing insurance from the private market.  Isn't
federal insurance at below-market rates simply an invitation to moral
hazard?)  Is there any "general welfare" argument, say, for using
federal
funds to rebuild homes in Malibu, etc.?  This is, of course, related not
only to the Lochner thread, but to the more fundamental issue, as argued
by
Michelle Landis Dauber in two brilliant articles, that there is no
self-evident way to distinguish between "natural disasters" and
"misfortunes that are the fault of the victims."  Why, for example, do
conservatives assume that California deserves aid and, say, victims of
structural unemplyment should be left to the vagaries of the market and
private charity?  I assure you this is not only a polemical
question.  David Currie has some fascinating discussions in his landmark
study of The Constitution in Congress about the tense debates in the
early
19th century about the propriety of using federal funds to help rebuild
Savannah and Alexandria after fires.  Does "general welfare" mean just
whatever a majority of Congress decide it is, or is there some
independent
way of saying that A is "truly" in the general welfare and B is "really"
unconstitutional rent-seeking.

I suppose it doesn't go without saying that I am truly appalled by the
devastation in California and at the suffering it has generated.  But,
after all, Harry Blackmun earned the scorn of many right-minded people
(pun
intended) for his sentimental reference to "Poor Joshua."  What's the
difference with "Poor Californians?"

sandy

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