As we are all now aware, the $700-billion bailout has become the law of the land. A lot of people are, understandably, upset about this and are pointing out the flaws of this legislation: that it is, ultimately, unfunded; that it rewards failure and penalizes success; and that it represents an increase in government's control over the economy unseen since the Great Depression.

All valid arguments, of course - and totally irrelevant: Such critiques miss the crucial point completely.

Every four years about this time, news stories start to appear about the Electoral College, the constitutionally established system we use to elect the president of the United States. Invariably, pundits use this season to lambast and ignore the important role the Electoral College plays in preserving our republic. Recently the attacks have gotten worse, and they have even convinced four states (Maryland, New Jersey, Illinois, and Hawaii) to enact legislation to do away with the Electoral College. Nationally, U.S Senator Bill Nelson (D-Florida) has introduced legislation to abolish it.

But before we discard the Electoral College, we need to understand its importance. As President Lyndon Johnson said of the Electoral College, "Our present system of computing and awarding electoral votes by states is an essential counterpart of our federal system and the provisions of our Constitution, which recognize and maintain our nation as a union of states."

For decades, writers such as Friedrich Hayek , Ludwig von Mises , and Ayn Rand have been warning us that the mixed-economy "welfare" state is not a third alternative between capitalism and collectivism but is, instead, an explosive and unstable mixture that must, by the logic of the principles involved, become one or the other.

Much of the recent revival of interest in the Constitution centers around the Bill of Rights and the war on terror, a subject I discuss elsewhere in this book. I could not be more sympathetic to these concerns. However, Americans must remember that the Constitution was designed not merely to prevent the federal government from violating the rights that later appeared in the Bill of Rights. It was also intended to limit the federal government's overall scope. Article I, Section 8, lists the powers of Congress. Common law held such lists of powers to be exhaustive.