- Tuesday, January 28, 2025

It’s reasonable to see the nation’s and the world’s attention focused on President Trump’s second inauguration. His return to the White House represents perhaps the most astounding comeback in U.S. political history.

It’s a tremendous win for the allied forces of the free market against the axis of collectivism so well represented by the public policy agenda embraced by the outgoing president. Here’s hoping much of that will soon be reversed.

The oligarchy of liberal media analysts who say that won’t be the case, that the Biden administration and its liberal congressional allies have built into the system too many safeguards and roadblocks to allow what they’ve accomplished to be easily undone. As usual, the chattering class has it wrong.



When it comes down to it, Mr. Trump has the power to bring about change immediately. The executive orders he’s signed after being sworn in as president reflect that. But his power is not absolute. That is the result of intelligent design.

Concentrated power is the enemy of liberty, both political and economic. Recognizing that men like Washington, Franklin, Hamilton and Madison built a system of checks and balances that has led to the creation of seven separate citadels of power that by themselves can change the direction of the country if — and in many cases only if — they can persuade others to go along.

The first and the most powerful is the presidency. As head of government and head of state, the president has the most to say about the most things. Following the example of President Teddy Roosevelt’s use of “The Bully Pulpit,” the chief executive sets the agenda for the country.

To accomplish anything lasting, he needs the consent and cooperation of the second and third citadels: The U.S. House of Representatives and the United States Senate. Both bodies have responsibilities independent of the other. All revenue bills must start in the House. At the same time, the Senate alone confirms or rejects presidential appointments to positions inside the executive branch positions, the judiciary, envoys and ambassadors, and leads the independent agencies responsible for supervising much of the modern regulatory state.

All their actions are subject to judicial review, a process through which the judiciary reviews the government’s executive, legislative or administrative actions. In Marbury v. Madison, the United States Supreme Court held power rested with itself, making it the fourth citadel of power.

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The fifth and sixth citadels, which combined have a degree of power and authority in domestic and economic affairs almost but not quite equal to the federal government’s, are the governors and the state legislatures. In America, power is divided not just horizontally, as among the federal executive, legislative and judicial branches, but vertically between Washington and the states, which retain considerable authority over their internal affairs thanks to the Ninth and 10th Amendments.

The seventh citadel, the United States Federal Reserve, didn’t come into being until the early part of the 20th century but is in many ways the most powerful, or at least subject to the least supervision and accountability.

Working together, which happens rarely, these entities can produce rapid change. Working in opposition, as is more often the case, slows the change process as ideas are hammered out and compromises are made, or, as the founders might have said, the people’s passions are given time to cool.

This is probably for the best, especially if one believes the highest use of the government’s power is to establish an environment in which the economy grows, individual liberties are protected and living standards rise. As is evident from the history of many of our European allies and even a few enemies, rapid change often leads to tyranny.

As of Jan. 15, Republicans control the governorship and both legislative chambers in 23 states, compared with 15 states where Democrats can govern without input from the opposition. Change will happen first in those states.

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It won’t be unusual to see some state-enacted changes eventually replicated in Washington. Several states are considering transforming their progressive income tax structure into a single-rate “flat” tax or zeroing it out altogether. Adding those to the ones already with a single-rate tax or no tax at all increases the possibility that the federal tax system will eventually follow suit.

Likewise, in education policy, states are increasingly granting state education funding directly to parents rather than parceling it out among school districts based on total enrollment. That’s been a tremendous boon to the “parental choice in education” movement, which has set a goal of “25 in 25” — to have half the states dispense their education money to parents rather than systems.

The divisions of left vs. right, red vs. blue, are very real. So far, the red side appears to be in the lead. As of noon on Jan. 20, six of the seven citadels of power are led by the right. The Republican Party holds the presidency and Congress. A majority of the U.S. Supreme Court are Bush & Trump appointees. In the states, 27 of the 50 governors are Republicans, and representatives of the party of Lincoln occupy 55.56% of all state legislative seats and make up the majority in 57 of 99 state legislative chambers. That places our nation on the cusp of momentous change.

It’s been done before. Welfare reform, which the Gingrich-era Congress forced President Clinton to make law, has been the most successful domestic public policy change of the past 50 years. Why couldn’t we find the same success if we choose to reforge our educational systems, reform our tax structure or revamp a health care system that is ripe for makeover?

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In a system where power is diffused and spread out among the citadels of power, innovative ideas like these have the opportunity, like cream, to rise to the top. We are, once again, at the edge of an exciting period of possibilities. It will be both fun and beneficial to watch it unfold.

Arthur Laffer is an American economist, Presidential Medal of Freedom award winner, and creator of the Laffer Curve. Lisa B. Nelson is the CEO of the American Legislative Exchange Council.

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