One theme that regularly asserts itself here is what the U.S. Constitution does and doesn’t allow as concerns food regulation and the right of private individuals to engage in private contracts.

The fact of the matter is that the Constitution doesn’t say anything about regulating food, But the Constitution omits lots of things that are regulated today (vehicles, barber shops, drugs, doctors, hospitals, etc., etc.). I’m afraid piling on Lykke about the absence of an explicit statement isn’t a productive exercise.

Similarly, the Constitution explicitly prohibits interference in private contracts between individuals; Article 1, Section 10 provides:“No State shall enter into any…law impairing the obligation of contracts…” Yet various states have repeatedly interfered in herd-share and buyers club contractual arrangements between individuals; I discuss in my book some of the reasons behind the marginalization of the Contracts clause.

(It should be noted that the same clause of the Constitution allowing for private contracts also prohibits any state from making “…any Thing but gold and silver Coin a Tender in Payment of Debts…” That prohibition has been ignored as a matter of American monetary policy since the early 1970s, when President Richard Nixon unilaterally reneged on the country’s policy of backing its currency with gold.)

The bigger issue over the Constitution isn’t whether it allows something, but how it is interpreted by judges, legislators, and presidents. And increasingly, the Constitution, much like owners of small farms, is being marginalized. And because judges refuse to stand up for it, legislators and the executive branch’s regulators ignore it ever more. Give ’em an inch and they’ll take a mile.

Interestingly, concern about the marginalization of the Constitution is working its way into the financial mainstream, which offers some hope—after all, once big money is affected, then things often happen in this country.

I was amazed to read this statement yesterday in a very popular financial newsletter that is distributed to more than one million subscribers, from the head of a large mutual fund:

“Aside from the fraction of bailout funding that was specifically allocated by Congress through legislation, these actions [the Fed bailing out financial institutions] represent an unconstitutional breach into enumerated spending powers that are the domain of the elected members of Congress alone. The issue here is not whether the Fed should be independent from political influence. The issue is the constitutionality of the Fed’s actions. The discretion that it has exerted over the past two years crosses the line into prerogatives reserved for Congress. That line needs to be clarified sooner rather than later.”

One of the places where we see a vivid example of the trampling of Constitutional guarantees is in the new food safety legislation that is close to being approved by Congress. I’ve been reviewing the U.S. Senate’s version (Senate Bill 510) over the past couple days, and I came across a sentence that grants the U.S. Food and Drug Administration the power to ignore the Fourth Amendment of the Constitution prohibiting searches and seizures without a warrant:

“(2) USE OF OR EXPOSURE TO FOOD OF CONCERN- If the Secretary [of Health and Human Services] believes that there is a reasonable probability that the use of or exposure to an article of food, and any other article of food that the Secretary reasonably believes is likely to be affected in a similar manner, will cause serious adverse health consequences or death to humans or animals, each person (excluding farms and restaurants) who manufactures, processes, packs, distributes, receives, holds, or imports such article shall, at the request of an officer or employee duly designated by the Secretary, permit such officer or employee, upon presentation of appropriate credentials and a written notice to such person, at reasonable times and within reasonable limits and in a reasonable manner, to have access to and copy all records relating to such article and to any other article of food that the Secretary reasonably believes is likely to be affected in a similar manner, that are needed to assist the Secretary in determining whether there is a reasonable probability that the use of or exposure to the food will cause serious adverse health consequences or death to humans or animals.”

Amazingly, that is just a single sentence. But such language, representing the worst application of lawyers’ legal training, is used throughout the legislation to confuse and obscure. I would venture that many lawyers can’t figure out what the hell it means, except that basically, FDA agents who say they’re suspicious of some producer’s food, can present “appropriate credentials and a written notice to such person,” and have at a company’s records. 

And by the way, try to figure out how the legislation defines what a “farm” is, which is supposed to be excluded. I can’t find the exact language, but my understanding is that once you wash or package any food, you transition from being a farm to being a food producer, subject to this legislation.

It’s understandable why even the big money interests are becoming concerned.