Loper Bright Enterprises v. Raimondo: The Supreme Court Battle Against the Administrative State
The Supreme Court is currently reviewing a case that could impact your individual liberty. And you probably haven’t heard about it.
The case began in November 2022, when Loper Bright Enterprises, a fishery based out of Cape May, New Jersey, appealed a district court opinion to the Supreme Court. The conflict between Loper Bright and the National Marine Fisheries Service (NMFS) started after the agency decided to require private fisheries like Loper Bright to pay their regulatory inspectors for their time observing fishery practices.
While the law doesn’t explicitly allow this practice, the Fishery Service cites the Chevron Deference, a precedent set by a 1984 Supreme Court case, which states that an ambiguous law can be interpreted by government agencies as they see fit. In short, the Fishery Service wants private companies to pay their salaries and found a legal loophole to justify it.
While this may seem like an isolated incident, it is just one example of a long history of government agencies infringing on individual liberty. The outcome of this case holds supreme importance for the future of our republic and the preservation of our financial and civil freedoms.
The Administrative State: A Tyranny of the Unelected
Since 1950, the federal government has steadily grown in size. Today, it has over 2.9 million civilian employees, more than Walmart has worldwide. This growth has paved the way for the creation of a governmental pseudo-branch denoted the “administrative state.” The administrative state contains government employees who have a significant impact on people’s everyday lives but yet aren’t held accountable to citizens in the form of elections. These unelected bureaucrats undermine the central ethos of a republic, where elected officials are supposed to seek the good of their constituents or risk not being re-elected.
The problem with this system was made evident during the pandemic. During the COVID shutdown, hundreds of millions of Americans were sentenced to lockdowns, impacting their schools, churches, and families. Many of the people behind this policy were members of the CDC, one of the government agencies that comprise the administrative state. The decisions they made were not subject to the traditional checks and balances which typically constrain the US government. Instead, America found itself under a tyranny of the unelected.
This overreach extends beyond individual liberty into private business. When businesses can be encroached upon at a whim by unelected authorities, long-term investment becomes a much riskier endeavor. When the COVID shutdown occurred, many small businesses, with their small profit margins and high overhead, were unable to weather the storm. For the companies that survived, the blatant government intervention and the severe consequences that followed left a sour taste in their mouth for future capital investments. You’re not going to build a new business if a bureaucrat can shut it down the next day. All of these factors contribute to government agencies having a negative impact on financial markets and investor portfolios.
The Central Problem With Chevron
The Chevron Deference precedent, which is at the center of Loper Bright Enterprises v. Raimondo, gives even more power to these governmental agencies. When ambiguity exists, this precedent allows courts to simply defer to agencies’ interpretations, even if those interpretations favor the agencies’ own interests. It also allows courts to seek out ambiguity in order to give near-unbridled power to these agencies.
If the Supreme Court upholds Chevron, it will further entrench the power of unelected bureaucrats and make it increasingly difficult for individuals and businesses to challenge agency overreach. However, if the Court rules against Chevron, it would represent a shift toward increased restraint of the administrative state, leading to a reevaluation of the scope and authority of federal agencies.
Either way, Loper Bright Enterprises v. Raimondo is set to have a heavy impact on the future of the administrative state and the balance of power between the government and the people.
American Freedom is on Trial
Loper v. Raimondo is more than just a legal dispute, it is a battle for freedom against the encroachment of the administrative state.
Proponents of Chevron argue that the statute has promoted national stability by reducing potential conflict between administrative bodies and private entities.
However, during the time Chevron has been in place, the administrative state has done everything but promote stability. Agencies have steadily increased their power, as evidenced by the COVID-19 case study, resulting in many counterproductive governmental actions.
The second, and most poignant argument for Chevron is that individual agencies have more expertise in their respective fields. Therefore, since they possess intellectual authority, they are justified in having political authority over the American populace. This dispute is, at its core, a battle for individual freedom.
One of the central claims of socialism is that centralized planners, who are more educated and knowledgeable than the average citizen, can orchestrate the nation and economy better than individual Americans making decisions. But this understanding is rooted in arrogance, not substance. Countries with more economic freedom have a higher life expectancy, GDP per capita, education rate, and overall quality of life. The “chaos” of free choice actually leads to productive outcomes. The Supreme Court should side with Loper Bright by overruling Chevron, giving citizens more of the vital freedom which is a necessary factor for national and individual success.
