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Constitutionality of GM, Chrysler Takeover Challenged

05/01/09

Constitutionality of Auto Industry Takeover Questioned on House Floor

 

(WASHINGTON, DC) – The Obama Administration actions in the U.S. auto industry may be in violation of the Constitution, according to House Republican Conference Secretary John Carter, who raised serious questions tonight on the House floor concerning the legality of ongoing Administration involvement in the private sector.

The former Texas state judge referenced the landmark Supreme Court decision concerning the overreach of an Administration into the private sector, Youngstown Sheet & Tube Company v. Sawyer. {343 U.S. 579, 72 S.Ct. 863, 96 L.Ed. (1952)} The decision dealt with President Harry Truman having issued an executive order seizing the nation’s steel mills during the Korean War, in order to avoid a shutdown resulting from a strike.

Carter said in that decision the contention that the aggregate powers of the Constitution and acts of Congress created new, more far-reaching powers was rejected by the court. "Nowhere in the Constitution is the executive granted the right to seize power." Carter says that just like in Youngstown, "Congress has not granted the President the power to take possession of property, and the Constitution* does not grant the President the power to take possession of property."

"Shouldn’t some courageous litigator somewhere be speaking out on behalf of the stockholders and investors?" begged Carter. "I believe the Constitution is there to protect the rights of all Americans. At what point in time does the President have to follow the Constitution?"

Carter was joined on the floor by U.S. Rep. Steve King (R-IA), who pointed out the questionable actions began with the Administration’s involvement with TARP funds and the Obama Stimulus Package.

*The Executive Powers Clause, Article II: Section 1, Paragraph 2; Section 3, Paragraph 1; Section 3, Paragraph 1. Article I, Section 1, Paragraph 1; Section 8, Paragraph 18.

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Watch the Floor Action Now on YouTube