The Slippery Slope

First it was AIG, then GM, and now BP? Robert Reich, former Secretary of Labor under President Clinton, said the following today:

"It’s time for the federal government to put BP under temporary receivership, which gives the government authority to take over BP’s operations in the Gulf of Mexico until the gusher is stopped. This is the only way the public will know what’s going on, be confident enough resources are being put to stopping the gusher, ensure BP’s strategy is correct, know the government has enough clout to force BP to use a different one if necessary, and be sure the President is ultimately in charge."

"If the government can take over giant global insurer AIG and the auto giant General Motors and replace their CEOs, in order to keep them financially solvent, it should be able to put BP’s North American operations into temporary receivership in order to stop one of the worst environmental disasters in U.S. history."

I really cannot believe that all of this is happening unchallenged; especially by constitutional lawyers who should know better. It is illegal for the federal government to take over a private company. No matter how reasonable and apparently vital their goal may be. I'll tell you where my thinking takes me on this (courtesy of oyez.org).

Youngstown Sheet & Tube Co. v. Sawyer, US Supreme Court

FACTS: In April of 1952, during the Korean War, President Truman issued an executive order directing Secretary of Commerce Charles Sawyer to seize and operate most of the nation's steel mills. This was done in order to avert the expected effects of a strike by the United Steelworkers of America.

QUESTION: Did the President have the constitutional authority to seize and operate the steel mills?

CONCLUSION: In a 6-to-3 decision, the Court held that the President did not have the authority to issue such an order. The Court found that there was no congressional statute that authorized the President to take possession of private property.

Seems pretty clear to me. I would love to hear other arguments.