A Law and Economics Analysis of the General Welfare Clause
7 Pages Posted: 6 Apr 2014
Date Written: April 6, 2014
Abstract
The General Welfare Clause of the United States Constitution grants authority to the federal government to expend funds that provide for the general welfare. If one were to apply utilitarian economic theory to the General Welfare Clause, one might reasonably conclude that the government only has the authority to pass legislation that benefits some supermajority of the population. In other words, all special interest legislation is unconstitutional, and therefore not valid law. This paper explores the issue of legislation from the perspective of law and economics.
Keywords: General Welfare Clause, utilitarian, ethics, Constitution, bailouts, foreign aid, protectionism, tariffs, quotas, antidumping, sanctions, trade legislation, Social Security, supermajority, occupational licensure, rent seeking, redistribution
JEL Classification: H81, F35, F51, H55, P33, Q27, F1, F13, J44, K, I31, D72
Suggested Citation: Suggested Citation