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Friday, June 24, 2005

Government Speculation

An initial thought on Kelo v New London, the eminent domain decision of the SCOTUS yesterday. The Court now deems constitutional the taking of property from citizens through governmental process and delivering that property to private investors. The majority felt that "public purpose" included enhancing the tax base of the municipality. But this is basically approving governmental speculation at the peril of inherent property rights of the citizens. And what happens after the taking? In this case, Pfizer is a beneficiary of the property trade. What if Pfizer's latest drug has unpublished side-effects such as Thalidomide and the company goes bankrupt just after construction begins? Where is the tax revenue? It was pure speculation with the trade off being anyone's (without political clout) property.

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