It is conventional to distinguish between an old liberalism, with a
robust conception of private property and a limited role for government in
the economy, and a new liberalism that permits government to override
individual property rights in the pursuit of the general welfare. The New
Deal is often taken to mark the dividing line between these two forms of
liberal governance. But when we focus on property rights through the
magnifying lens of Takings Clause jurisprudence, we find that the movement
away from strong property rights begins not with the New Deal but in the
late 19th century, at what is normally taken to be the peak of
constitutionally protected private property. The much-criticized decision
in Kelo v. New London (2005) represents, not a break with past doctrine,
but rather its logical consequence.
Protecting individual property-holders against expansive state powers
of eminent domain runs into a structural conundrum: while categorical
restraints on state power limit government's ability to promote
important public purposes, an explicitly purposive approach renders all
limits on government power (including individual rights) vulnerable to an
aggregative calculus. The most plausible response is a two-tier approach:
respect for legally established categories in ordinary circumstances,
regardless of their aggregate consequences, and consequentialism in
circumstances of emergency, when the lives or basic wellbeing of citizens
are at stake. Judged against this template, the consequentialism guiding
modern takings clause jurisprudence in ordinary, non-emergency
circumstances is hard to justify.