Jack Abramoff, the Law, and the Imperial Presidency
by
William L. Anderson
and Candice E. Jackson
by William L. Anderson and Candice
Jackson
In the wake
of Jack Abramoff’s guilty pleas in federal court, Democrats and
many libertarians are salivating at the possibilities of seeing
members of Congress (mostly Republicans) led out of their offices
in handcuffs and spending time in those federal prisons that those
same members have supported through their legislation and budgetary
appropriations.
Yet, we are
reluctant to celebrate, because if the U.S. attorneys – and their
various cheerleaders among press and pundits – have their way, the
result will not be a more "honest" Congress or the dawning
of Good Government, but the cold, hard reality of the growth of
executive power in government. Unfortunately, many of the same people
who have been decrying the "imperial presidency" have
been the ones calling for the U.S. Department of Justice (part of
the executive branch) to unleash their own prosecutorial dogs. If
things go as prosecutors and their supporters hope, that "imperial
presidency" will gain even more dictatorial power.
Before going
farther, however, we emphasize that we are not defending Congress
and the behavior of its members. Indeed, the best way to describe
Congress is to call it a legal protection racket. As Fred
McChesney has pointed out:
…a politician
has an alternative for raising money: selling protection. He can
agree not to do something that otherwise he says he would
do, something that would reduce the wealth of the potential donor.
The most obvious burden that can be threatened is a tax, but there
are any number of other things that a politician can propose and
then withdraw for a price. A private citizen will be just as willing
to pay for a special favor worth $1 million as he will to avoid
a $1 million tax. (This assumes constant marginal utility of wealth;
with declining marginal utility of wealth, a citizen will pay
more to avoid the $1 million loss than for the $1 million gain.)
This, then, is the essence of the political protection racket.
Superficially, selling special favors and selling protection do
look the same: payment is made to the politician in both cases.
But in the extortion racket, citizens are made to pay, not for
special favors from Uncle Sugar, but to protect private wealth
that they have earned the old-fashioned way, outside the political
process.
As objectionable
as this process may be, unfortunately, it is legal. We have
seen it done many times, a recent episode being the Microsoft prosecution.
With Microsoft, we had a tag-team effort involving all three branches
of government, not to mention the rest of the Beltway parasites
who enthusiastically backed the government. In the end, the executive
branch had its fines, members of Congress received new lobbying
cash from Microsoft, and the players in the judicial branch had
fees, salaries, and prestige.
The Abramoff
case is far more troubling. Abramoff’s transgressions involve the
usual set of derivative and ancillary "crimes" that federal
prosecutors often use in place of those actions that would constitute
real harm to individuals. Thus, we see Abramoff getting ready to
live in Club Fed for many years, having
pled guilty to those derivative crimes of "wire fraud,
conspiracy," and "tax evasion." What we do not see
are the substantive crimes such as theft or outright bribery. This
is not surprising. McChesney notes:
(Politicians)
may well take payments to make private parties better off, such
as providing tariffs or subsidies. Occasionally, these payments
cross the legal line and are actionable as bribery. Prosecutions
are few and far between. They largely target not the true substance
of the transaction – payment for special favors – but some failure
to follow the prescribed legal methods of payment for the favors.
Campaign-spending laws provide the blueprint for perfectly legal
bribery.
Furthermore,
the Jack Abramoffs of the world do not "corrupt" government,
as we are hearing today. Instead, the wide reach of government makes
people like Abramoff inevitable, as they are responding to the actions
and potential actions of legislators and bureaucrats to create economic
and social opportunities for some people – and to take away those
same opportunities for others.
Most lobbyists
do not flaunt their wealth and influence as did Abramoff, which
is why he is in the dock and they are engaged in business as usual.
They are satisfied with their six and (sometimes) seven-figure incomes
and do not much care for upstarts like Abramoff, who no doubt peeled
business away from more established lobbyists, just as Michael Milken
took clients away from established financial houses on Wall Street.
Like Milken in the early 1990s, Abramoff will see the inside of
a prison.
While one rightly
can call the behavior of legislators and others reprehensible, there
are ways to deal with the problem. Bad publicity is one way, and
elections are another. Neither provide a perfect remedy, but as
long as legislative branches of government exist, our options are
limited.
The current
mechanism to deal with members of Congress who have received largess
from Abramoff – and one that we do not applaud – is prosecution.
Over the next year, federal prosecutors will target certain members
of Congress who received gifts and campaign contributions from Abramoff
and attempt to criminalize their actions.
The first tactic
will be to claim that members of Congress "sold" their
votes – in other words, bribery. However, we predict that if the
various gifts and contributions were legal in and of themselves,
then trying to prove bribery in a court of law will be rather dicey,
and most federal prosecutors, who are used to employing bullying
tactics in order to win guilty pleas, are not skilled enough to
convince jurors that real bribery took place. (Of course, that assumes
that the jurors themselves are not corrupt, and federal juries often
are little more than lackeys for the prosecution.)
The second
tactic will be to fit the law into grotesque shapes in order to
gain "wire fraud," "conspiracy," or similar
charges that often do not de facto require a real crime to
be committed. Anyone who doubts should remember that Martha Stewart
(whose
conviction has been upheld by a rubber-stamp federal appeals
court) did not commit a crime in the sale of her stock, yet went
to prison anyway. Prosecutors might have more success with these
kinds of charges, as they de facto require a burden of proof
that is quite low.
The major problem
that prosecutors face here is that all of these payments and gifts
were given openly and were dutifully recorded. Thus, U.S. attorneys
will have to find a way to criminalize something that the law says
is legal.
Unlike the
Abscam case of the early 1980s in which FBI agents offered
open bribes (in front of a hidden camera) to members of Congress
in which the quid pro quo was clearly stated, prosecutors do not
have any evidence that is open-and-shut. That will not keep them
from trying to gain convictions, but it should.
(We add that
Abscam itself was an outrage. The FBI, upset that congressional
committees had exposed wrongdoing and outright crimes by federal
agents during the 1960s and 1970s, targeted members of Congress
in retaliation. Yes, the congressmen should not have taken the money,
but they never should have been put in that situation in the first
place, as the entire set of "crimes" was created by the
FBI.)
Our real problem
with this affair however, is not just the use of ancillary and derivative
"crimes" to further the cause of prosecutors, but rather
because we are seeing another example of the executive branch gaining
power at the expense of the legislative branch. This process began
with Abraham Lincoln, gained strength during the regimes of Theodore
Roosevelt and Woodrow Wilson, and reached full speed during the
Franklin D. Roosevelt Presidency.
The U.S. Constitution
clearly marks the separation of powers, but the "emergency"
conditions of the Great Depression led FDR to demand from an acquiescent
Congress that it "re-delegate" its own delegated powers
to the president. Since World War II, the process has continued
apace. Even the downfall of the Richard Nixon Presidency via Watergate
has not appreciably slowed this sorry process.
When people
complain of the powers that George W. Bush has used, they need to
remember that he is doing only what Congress and the courts have
permitted him to do. If Democrats do not like the current "imperial"
presidency, then they have no one to blame but themselves, for their
party was in power when the process commenced in earnest, and FDR
still remains the gold standard as far as loyal Democrats are concerned.
Although the
present angst of some members of Congress might prove to be good
theater (and we are living in an era of bread-and-circuses,
after all), in the long run it will serve to strengthen the executive
branch of government at the expense of the Constitution. If we wish
to rid ourselves of the Jack Abramoffs of the world, there is a
better way: smash the state apparatus that makes lobbying so lucrative
in the first place.
January 9, 2006
William
L. Anderson, Ph.D. [send him
mail], teaches economics at Frostburg State University in Maryland,
and is an adjunct scholar of the Ludwig
von Mises Institute. Candice
E. Jackson [send her mail]
is an attorney and graduate of Pepperdine Law School.
Copyright
© 2006 LewRockwell.com
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