But, though the traders and Tea Partiers didn’t quite understand it, the federal government long ago had turned from the shield of individual liberty into a vast engine of redistribution. That transformation could occur because the Framers’ Constitution was body-snatched by the doctrine of the “living constitution,” which—as Woodrow Wilson first formulated it—saw the Supreme Court sitting as a permanent Constitutional Convention, making up laws as it went along, heedless of the 1787 scheme’s checks. Franklin Roosevelt’s New Deal used Wilson’s doctrine as a license to remake America’s economy and society. Once the Supreme Court buckled to FDR’s threat to pack it and started voting his way, the justices allowed an utterly foreign governmental structure to devour the Framers’ republic from within, until it broke out of the shell as something altogether different.
Not that FDR was entirely frank about his transformative enterprise. Where Wilson had dismissed the Framers as obsolete relics in a Darwinian age, Roosevelt claimed to extend their great work even as he undid it. In his second inaugural address of 1937, he hailed the 150th anniversary of the Constitutional Convention, which had “created a strong government with powers of united action sufficient then and now to solve problems utterly beyond individual or local solution”—a wildly false characterization. Chastened by America’s near-loss in the Revolution, the Framers sought to create a government strong enough to protect national and individual independence but not so strong that, given mankind’s inherent power-hunger, it could become what they called an “elective despotism.” So they limited that power to such clearly enumerated tasks as raising an army, a navy, and taxes; coining and borrowing money; and regulating foreign and interstate commerce. All other matters they emphatically left to “individual or local solution.”
They certainly didn’t mean to put the whole U.S. economy under federal regulation. But as FDR later admitted, when he took the oath to defend the Constitution just before delivering the 1937 address, he had wanted to shout, “Yes, but it’s the Constitution as I understand it.” The New Deal’s main thrust, after all, was precisely to take total control of the economy, under the ruse of federal power to regulate interstate……