Our public “servants.”  They know what is best for us, and if it isn’t, well, they’ll be safe.  Forgotten now (it was years ago, dude) is that our elected representatives have their own health care, and they wish us the best going forward with ours.

Additionally, many government employees enjoy lofty pensions and cost-of-living adjustments for those pension payouts.

Have we lost the “genius of our system” to which James Madison referred? 

Madison’s caution regarding legislators applies just as well to our economic rulers, the Central Bankers.

Madison promised that our elected representatives would not be above us:

… that they can make no law which will not have its full operation on themselves and their friends, as well as on the great mass of the society.

Madison continues:

This has always been deemed one of the strongest bonds by which human policy can connect the rulers and the people together. It creates between them that communion of interests and sympathy of sentiments of which few governments have furnished examples; but without which every government degenerates into tyranny.

When the Federal Reserve members, governors, presidents, chairpersons promote inflation, they themselves are sheltered from its ill effects.  There is no “full operation” of inflation upon them, nor will there be.  They have the pensions, cost-of-living adjustments, and special health care plans.  In many instances they have the big six-figure speech calendar after they leave “public service.”  Others have the private-sector positions that will supplement their government pensions.  Nice.  Inflation, that which they promote, is of little concern for them who champion the concept.

This brings us back to Madison’s “promise.”  Though he did not have economics in mind, Madison held to the concept that the effects of the decisions made by our “public servants” must have the same impact on “them” as upon “us.”

Ben Bernanke once said he “worried about the retirees” because of the zero interest rate policy.  Hats off to Mr. Bernanke for the nanosecond of concern.  It must have been a fleeting emotion.  We witness Mr. Bernanke’s retirement. 

Though Madison warned of politicians “making legal discriminations in favor of themselves and a particular class of the society,” there seem to be “economic discriminations” being conducted.  For our economic “rulers,” the Central Bankers, are sheltered from any ill effects from the policies they promote for “us,” just as Congress and others are insulated from any ill effects of the mislabeled Affordable Care Act.  Madison’s promise broken again.