I had a good friend challenge me about my recent post on the stimulus package. I think that the main issue was about the control that the stimulus package gave the federal government when one takes the stimulus money. But there IS a difference.
Let me explain:
In the past, if you took federal money for say, a school district, or as a municipality, there were indeed rules about how the money was to be spent and how the reporting of that spending was to occur.
The DIFFERENCE between the past and now is this: If you break the rules of the stimulus package money, the new law gives the Federal government the right to come into your business, get into your books, control how you pay your employees, and generally take control of things like they have done with the auto industry and the banking industry.
In the past, if you misspent the money or broke the rules, they would investigate you, and if found guilty, they would fine you, make you pay the money back, and never give you any more. That’s the government’s role in the past in the management of funding misuse. NOT control, NOT business partnership; NOT pay czars that dictate your employee’s pay’. Reprimand, fines and investigations were the extent of the government’s involment.
But today, mess up and they get to take over your way of doing business. There is NO constitutional authority for the government to do that. None. There’s no case law or court precedent for taking such drastic, draconian control over private enterprise.
There IS a difference!