Eminent Domain’s Economic Benefits Cast into Doubt
“In an era of increasing government economic interventions and regulations, people have many reasons to be concerned about future government growth. From sweeping changes in health care and immigration policy, to public education, policy changes are adding to people’s uncertainty about the U.S. economy’s health. One issue underpinning the economy’s success is fundamental to the continued prosperity of its citizens: private property rights.
In 2005, the Supreme Court of the United States case Kelo v. City of New London determined that private property can be taken for “private benefit,” in addition to “public use,” as originally set forth in the Fifth Amendment to the U.S. Constitution.
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Our research specifically examined the relationship between takings for private benefit and state and local government revenue. Our findings do not support the claim that such takings will positively affect revenues.
Voters should be more skeptical when politicians claim using eminent domain for private purposes can benefit the economy. On the other hand, politicians should pay more attention to the importance of protecting private property rights, instead of choosing to approve plans to take land from some residents—who are typically poor and lacking political influence—and handing it over to their political supporters.”
Stansel, Dean. Heartland News 24 December 2014.
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