The Transformation of the American Republic
According to Bruce Pardy, the United States was founded as a land of limited government, checks and balances, separation of powers, and the Bill of Rights. However, it has instead become a managed society where government dominates the lives of its people. Pardy identifies nine key moments that contributed to this shift from a republic to a managerial state.
The Necessary and Proper Clause, 1787
The U.S. Constitution's Article 1 grants Congress the power to make all laws 'necessary and proper' for executing its mandate. Alexander Hamilton exploited this clause to create a national bank in 1791, despite no explicit constitutional authority. The 10th Amendment, passed soon after, reserved undelegated powers to the states or the people but omitted the word 'expressly,' allowing Hamilton's blank cheque to remain.
The Pendleton Civil Service Reform Act, 1883
After President James A. Garfield's assassination in 1881 by a disgruntled job seeker, Congress passed the Pendleton Act to curb political patronage. Initially covering about 10% of federal positions, its scope expanded rapidly. Today, the president cannot appoint or dismiss most federal civil servants, shifting power from elected leaders to unelected bureaucrats and giving rise to what Pardy calls 'the deep state.'
Woodrow Wilson and the Federal Reserve, 1913
Woodrow Wilson, the first progressive president, promoted government administrators as a professional class above politics. He created federal agencies with independent power, most notably the Federal Reserve. The Federal Reserve Act of 1913 granted the Fed authority to set interest rates, regulate banks, and act as lender of last resort without presidential or congressional direction, enabling it to manage the economy autonomously.
