• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii

3

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii

3

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Commentary250 Years of Innovation

America at 250: why the Constitution was built to restrain government, not celebrate majority rule

Steve H. Hanke
By
Steve H. Hanke
Steve H. Hanke
Down Arrow Button Icon
Steve H. Hanke
By
Steve H. Hanke
Steve H. Hanke
Down Arrow Button Icon
July 1, 2026, 6:30 AM ET
Steve Hanke is a Senior Contributing Columnist at Fortune, a professor of applied economics at The Johns Hopkins University, and a member of the Board of Directors at the Federal Fiscal Sustainability Foundation. He is the co-editor, with Barry W. Poulson and John Merrifield, of Public Debt Sustainability: International Perspectives (Lexington Books, 2022).
usa
the Constitution was built to restrain government.Amy Lemus/NurPhoto via Getty Images
Add Fortune on Google for similar content.

Most people, including most Americans, would be surprised to learn that the word democracy does not appear in the Declaration of Independence (1776) or the Constitution of the United States of America (1789). They would also be shocked to learn the reason for the absence of the word democracy in the founding document. Contrary to what the public has been led to believe, America’s Founding Fathers were skeptical and anxious about democracy. They were aware of the evils that accompany a tyranny of the majority. Not surprisingly, the Framers of the Constitution went to great lengths to ensure that the federal government was not based on the will of the majority and therefore was not democratic.

Recommended Video

The Constitution divided the federal government into legislative, executive, and judicial branches. Each branch was designed to check the power of the others because the Founders did not want to rely only on the voters to check government power. As a result, citizens were initially given very little power to select federal officials. Neither the President, members of the judiciary nor the Senate were elected by direct popular vote. Only members of the House of Representatives were directly elected.

The Constitution was designed to further the cause of liberty, not democracy. To do that, the Constitution protected individuals’ rights from the government, as well as from their fellow citizens. To that end, the Constitution laid down clear, unequivocal and enforceable rules to protect individuals’ rights. In consequence, the government’s scope and scale were strictly limited. Economic liberty, which is a precondition for growth and prosperity, was strongly favored by the Constitution’s protections for property and contract.

Following the Declaration of Independence, the Constitutional Convention convened in 1787 in Philadelphia. In due course, the Constitution was crafted and ratified in 1789. It is a short, clear, intelligible document. The Constitution’s preamble contains only 52 words. It is followed by seven short articles and ten amendments known as the Bill of Rights (1791). The Bill of Rights establishes the rights of the people against infringements by the State. The only claim citizens have on the state, under the Bill of Rights, is for a trial by jury. The rest of the citizen’s rights are protections from the State.

The original Constitution established the rule of law and limited government. About 20% of the Constitution itemizes things that the federal and state governments may not do. Another 10% of the Constitution is concerned with positive grants of power. The bulk of the Constitution — about 70% — addresses the framers’ conception of their main task: to bring the United States and its government under the rule of law.

The Constitution was not a Cartesian construct or formula aimed at social engineering, but something to protect the people from the government. In short, the Constitution was designed to govern the government.

For roughly a century after the Constitution was ratified, private property, contracts and free internal trade within the United States were respected. The scope and scale of the government remained constrained. All this was consistent with what was understood to be an essential part of liberty.

Until World War I, economic and fiscal affairs were governed in the spirit of the Constitution. On the eve of World War I, government expenditures were less than 2% percent of GNP and 99% of the population paid no income tax. The income tax had just been introduced, with the top rate of 7% applied to incomes exceeding $500,000. The federal government had around 400,000 employees, less than 1 percent of the labor force. About 165,000 troops were on active duty. No federal regulations of capital or labor markets of the modern kind existed. Agricultural production and distribution were also largely free of federal regulation. There was no minimum wage rate and no social security. One area where the government interfered rather aggressively in the economy concerned the rates and tariffs the railroads charged. Antitrust enforcement was also in vogue.

World War I marks a sharp departure from the constitutional limits that had previously constrained Washington. Property rights were suspended on a large scale. There were wide-scale nationalizations of rail, telephone, telegraph and to a lesser degree ocean shipping. Over 100 manufacturing plants were nationalized. Under the Adams Act of 1916, the government became involved in labor-management relations. Conscription was instituted. The Espionage Act was passed in 1917. The Sedition Act of 1918, which subverted the Bill of Rights, imposed penalties for anti-government expression. Upton Sinclair was arrested for reading the Bill of Rights and Roger Baldwin was arrested for reading the Constitution. President Woodrow Wilson presided over this expansion of federal power under emergency powers granted to him by Congress in 1916.

Much of this anti-Constitutional apparatus was scrapped after the war. However, residues remained and eventually resurfaced. All it took was another national emergency – the Great Depression. That emergency was followed by World War II, the Vietnam War, the War on Terror, COVID lockdowns, and so forth and so on. With each emergency, laws were enacted, bureaus created, budgets enlarged, and civil liberties restricted. Indeed, each national emergency has functioned like a ratchet, resetting the baseline size and reach of government ever higher.

To rein in America’s ever-expansive Leviathan, it’s time to amend the U.S. Constitution. Thanks to the Founders’ foresight, it’s possible to do so.

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.

About the Author
Steve H. Hanke
By Steve H. Hanke
Twitter icon
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Commentary

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Commentary

rn
CommentaryCryptocurrency
Former Iran director at NSC: Crypto legislation is a ticket to sanctions evasion
By Richard NephewJuly 2, 2026
14 hours ago
m
Commentary250 Years of Innovation
McKinsey chairs: Building a more resilient industrial base may require $2 trillion in investment
By Eric Kutcher and Shubham SinghalJuly 2, 2026
14 hours ago
em
Commentary250 Years of Innovation
America’s 250th birthday has Elon Musk and a record IPO. Its 15th had Alexander Hamilton — and a stock market bubble
By Owen LamontJuly 2, 2026
18 hours ago
paramount
CommentaryAntitrust
How Paramount’s theater commitments could boost local economies across the nation
By Ike BrannonJuly 2, 2026
18 hours ago
elon
CommentaryChina
China has 400 private space companies. The West is barely paying attention
By Rainer ZitelmannJuly 2, 2026
20 hours ago
senate
CommentaryCongress
One rare bipartisan AI bill is moving through Congress. Here’s why it deserves to pass
By Neil Björkman and Betsy BrewerJuly 1, 2026
2 days ago

Most Popular

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
Big Tech
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
By Marco Quiroz-GutierrezJuly 1, 2026
2 days ago
Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii
Success
Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii
By Sasha RogelbergJuly 2, 2026
12 hours ago
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
8 days ago
Today, Emily Blunt is worth $80 million thanks to her Hollywood career—but she actually wanted to be a UN Spanish translator on $80K
Success
Today, Emily Blunt is worth $80 million thanks to her Hollywood career—but she actually wanted to be a UN Spanish translator on $80K
By Orianna Rosa RoyleJuly 2, 2026
22 hours ago
Americans are escaping the U.S. for New Zealand where house prices have hit a new low—but only wealthy Americans with $3 million spare can invest
Success
Americans are escaping the U.S. for New Zealand where house prices have hit a new low—but only wealthy Americans with $3 million spare can invest
By Emma BurleighJuly 2, 2026
13 hours ago
Current price of oil as of July 2, 2026
Personal Finance
Current price of oil as of July 2, 2026
By Joseph HostetlerJuly 2, 2026
15 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.