“Too Big To Fail” – California Lawmakers Approve Legislation for $21 billion Wildfire Fund

This represents precisely what the Anti-federalist’s feared: a merchantilist government. Mercantilism was the dominant economic theory in Europe throughout the late Renaissance and early modern period (from the 15th-18th century). Mercantilism encouraged many intra-European conflicts and fueled European expansion and imperialism until the 19th century or early 20th century. The policies during this period promoted export of products and limiting imports through tariffs, etc. The mercantilists argued that a large population was a form of wealth, making it possible to create bigger markets and armies, as opposed to the doctrine of physiocracy that predicted that mankind would outgrow its resources.

Henry Clay compounded the felony with “The American System.” Following the War of 1812, Henry Clay propounded what became known as the “American System”. It advocated federally financed internal improvements (primarily roads and canals), a high protective tariff, and cooperation with South American patriots to enhance the American status as a leader in the Western Hemisphere. Clay stated that adoption of his plan would bring the United States “to that height to which God and nature had destined it.”

These two dynamics led directly to the creation of National Banks, which the anti-federalists also decried warning that such a bank would lead to essentially “empire building.” It appears they’ve been correct on all the above counts.

If you want to discover another, huge motivator for the State to “bail out” PG&E look no further than the Comprehensive Annual Financial Report (CAFR) of CalPERS (The California Public Employees’ Retirement System) and you’ll see the depth of their PG&E stock investment. I’m sure they’re not the only one of the 220,000+ CAFRs displaying such investment. This is the “secret” behind “Too Big To Fail.”