In the field of Economics there is a term commonly used to express the sheer hopelessness of our current predicament, it’s “Keynesian Endpoint.” Supposedly, this is the point where our society is so deeply in debt that any amount of further borrowing to “stimulate” only causes counter-stimulative effects. That is, borrowing 50 billion more to “stimulate” the economy will cause inflationary effects that completely counter any stimulation of aggregate demand which spending that 50 billion might cause. Thus, the main underlying assumption behind Keynesian economics is no longer true – that government spending in all cases is good. I believe we have already reached this place in time.****
However, that is not the point of this post. I believe that we as a nation have reached another endpoint, a Hamiltonian endpoint. The Hamiltonian premise is that the Federal Government may do anything which is not specifically forbidden by the U.S. Constitution (regardless of the clear language by the founders in the Federalist papers/ratifying conventions). This system has an endpoint because it is inherently unstable.
First, we must define Hamiltonian-ism. This is from Websters online dictionary:
The political principles and ideas held by or associated with Alexander Hamilton that center around a belief in a strong central government, broad interpretation of the federal constitution, encouragement of an industrial and commercial economy, and a general distrust of the political capacity or wisdom of the common man
I am speaking specifically of the broad interpretation of the U.S. Constitution.