In his final book, economist Mancur Olson wrote of the profound and crucial connection between representative government and the property and contract rights important for economic progress. Olson quoted James Madison: “Just as a man may be said to have a right to his property, so he has a property in his rights.” The rule of law is therefore essential for the preservation of constitutional government and for economic growth. In no country have the economic fruits of the rule of law been more plentiful than the United States.
Today there is no greater threat to the rule of law and the right to the peaceful enjoyment of property than the Environmental Protection Agency (EPA), in the course of prosecuting its ostensible mission to clean the air and the water. Under the guise of the Clean Air Act, the agency’s Clean Power Plan will take control of America’s electrical-power infrastructure.
Yet Congress did not envisage that the 1970 legislation would be used to regulate greenhouse-gas emissions. To get around the inconveniently precise wording Congress provided in the statute, EPA resorted to rewriting the provision of the Clean Air Act that didn’t fit with its regulatory plans — a gambit that has had ups and downs in the Supreme Court, which will soon address the legality of the Clean Power Plan. Until Monday, the timetable was well advanced, with states being required to submit compliance plans this summer. Then, on Tuesday, the Supreme Court in a 5–4 decision agreed to freeze its implementation, showing that the plan’s opponents have a reasonable prospect of persuading the courts to throw out the plan.