The President mentioned the Rule of Law in a speech last week. At the National Archives about his policies on terrorism, he said:"From Europe to the Pacific, we've been the nation that has shut down torture chambers and replaced tyranny with the rule of law."
But the previous week the administration blew off the Rule of Law in the Chrysler bankruptcy.
It stiffed the senior secured creditors in favor of a junior creditor, a labor union. That's probably unconstitutional, because the US Constitution calls for "uniform Laws on the subject of Bankruptcies throughout the United States." You can see why the founding fathers might think uniform bankruptcy laws were a good thing. It would provide protection for creditors, never the most popular people in society, against a politically favored special interest like a labor union.
If you are not going to favor secured creditors over a politically powerful interest, why bother having laws, or a Rule of Law at all? Just let the unpopular people go to the wall. Tell them to hire a politician next time.
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