Smart Government

The Founders were smart about how they structured the US government.  They had organized government to allow maximum freedom and individual responsibility for the People and limited powers for government. They kept the federal footprint small and stressed private property rights and personal freedoms for the people. They recognized State governments would handle everything not in the federal enumerated powers. The federal government only took on what it had to do and left the rest of it to us.

The federal government used Tariffs and Fees to fund all government operations. These Tariffs were charged for exports of resources and imports of goods. The US government had to pay off debt from the Revolutionary War and the War of 1812. The Tariffs in imported goods included furniture and clothing from Europe.  These tariffs allowed the US to develop its own furniture and clothing manufacturing capability. US exports of cotton, tobacco, furs and food produced Tariffs paid by Europeans.

There were no taxes on land, property or income. This was a big advantage for US citizens compared to their poor ability to earn and keep income in Europe. The free market economy regulated prices and US citizens were able to operate their farms, ranches and businesses at a profit most years.  This gave them the money to invest in labor-saving devices to make their businesses more productive and therefore more profitable. The US model allowed the country to thrive and grow.

They also recognized that the People, would vote to decide what they needed within the States. They knew that voters would create cities and States would create counties. To maximize freedom, they left it to voters to control whatever government they created in their own communities. At first, the families in these communities did everything they could by themselves and were careful and frugal.

Families in these communities helped each other.  They had “barn raisings” where they helped neighbors build barns. They built churches and homes and community meeting buildings and school houses.

The first expenditures communities supported were those related to the courts and law enforcement and these were limited.  They made sure that their land titles were recorded to protect their property. The carried guns to protect themselves from being killed by criminals and wild animals.

The finally approved expenditures to build roads and those with school houses eventually hired a teacher. Students of all ages were in the same classroom. Those who knew how to read and do math helped the younger students. Many families homeschooled using the same model where the older kids helped the younger ones. Most families had Bibles and were active sharing other books with neighbors.

From 1776 to 1865, the US amassed large amounts of War Debt.  The $77 million Revolutionary War debt was paid for with Bond sales. The $158 million debt incurred for the War of 1812 was paid for with import duties and was paid off by 1837. The Mexican American War 1846-1848 cost included $15 million paid to Mexico plus war expense of $100 million. The Civil War 1860-1865 cost was $64.8 million paid for by a temporary income tax.

Good Deals that were Unconstitutional

Government subsidies and giveaways are usually a bad idea. But in the 1800s the idea of giving away 40 acre land grants for families to build their homes, plant crops and raise livestock and enable them to be self-sufficient allowed the government to settle the US land mass quickly and this was needed to prevent other nations from migrating back to the land.

Unconstitutional acts are usually bad ideas, but Thomas Jefferson’s Louisiana Purchase was a brilliant idea. It led to the Mexican War in 1858 that won us the rest of the North American land mass and gave us 2 Oceans to protect our flanks.

There were acceptable exceptions

Federal land grants to railroads to subsidize the building of the Transcontinental Railroad was a good government giveaway. We needed to extend the railroad to improve mobility and increase the national economy.

The Federal government funding of the Cumberland Road to connect the Potomac River with the Ohio River authorized by Congress in 1806. The reason was to increase shipping to the West.

There was always the risk of electing the wrong people to elective office.  There was always the risk that voters would not require legislators to adhere to the US Constitution (as written).  There have always been businesses who wanted federal funds for something.

By 1872, the US federal government had it made. They had conducted expensive wars and were able to pay off their war debt. The population was productive and the US economy was controlled by the laws of economics in a free market system where consumers controlled prices through supply and demand. The US had prospered through the Industrial Revolution and the application of scientific advances were being perfected to produce devices and appliances that had a global consumer base.

Norb Leahy, Dunwoody GA Tea Party Leader