WEBVTT

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Welcome back to the deep dive. Today we're pulling

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a file off the shelf that sounds, at first blush

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anyway, like it belongs in a herpetology textbook.

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We are talking about the Hiss Act. It definitely

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has a very distinct serpentine ring to it. But

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unless you consider the maneuvering of 1950s

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congressional hearings to be snake -like behavior.

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Which, you know, honestly is a toss -up depending

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on who you ask about Congress. Fair point. But,

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strictly speaking, there are no actual reptiles

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involved today. Right. We aren't here for biology.

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We're here to talk about a piece of legislation

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from 1954. It's officially known as Public Law

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769. And looking at this stack of research you've

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pulled together, I mean, we've got the legislative

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history, court rulings from the 70s, right up

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to a National Taxpayers Union report from 2022.

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It is a wild ride. It really is. And the reason

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we're dedicating an entire deep dive to this

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obscure law is that it's the perfect case study

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in what I like to call legislative rage. Legislative

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rage. Exactly. We tend to think of laws as these

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cool, calculated decisions made in marble rooms

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by people thinking about the next century. But

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the Hiss Act is what happens when Congress gets

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furious at one specific person, tries to build

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a legal weapon to destroy them, and ends up accidentally

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blowing up the retirement plans of thousands

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of innocent bystanders. Precisely. It's a classic

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case of unintended consequences. We are going

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to trace how a law designed to crush a Soviet

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spy named Alger Hiss somehow ended up targeting

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postmen for petty theft, stripping pensions from

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World War II veterans, and then in a twist that

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feels like it was written by a screenwriter,

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completely failing to hurt the spy it was named

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after. And then just to twist the knife a little

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more, we'll look at why even today, despite all

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the tough talk we hear about stripping pensions

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from corrupt politicians, the system is surprising.

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bad at actually doing it. It's a journey from

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the Red Scare right up to the modern era. It

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reveals a lot about the gap between passing a

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law to make a statement and passing a law that

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actually functions in the real world. So let's

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start with a namesake, the target on the bullseye,

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Alger Hiss. For the listeners who might not be

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steeped in Cold War lore, we need to set the

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scene. Who was this guy and why did Congress

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hate him enough to write a law specifically for

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him? You have to understand, Alger Hiss wasn't

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just some low -level clerk. He was the golden

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boy of the American establishment. He was a high

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-ranking State Department official. He had been

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at the Yalta Conference with FDR. Wow. Yeah.

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He helped organize the founding of the United

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Nations. So he's really in the room where it

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happens. He essentially built the room where

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it happens. Yeah. But in the late 1940s, amidst

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the growing panic of the Cold War, he was accused

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of being a Soviet spy. It was the trial of the

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century. The whole nation was glued to it. This

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is peak McCarthyism era. The Red Scare is ramping

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up. Right. And while the government couldn't

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get him on treason due to statutes of limitations,

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they got him on perjury. In 1950, he was convicted

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on two counts of lying about his contacts with

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the Soviets. He goes to prison. But here is the

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detail that drove Congress absolutely insane.

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The pension. Yes. Because he had been a civil

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servant for so long, he was still eligible for

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his federal pension. I can imagine that didn't

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sit well. The idea that tax dollars would fund

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the retirement of a man convicted of betraying

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the country? It was politically intolerable.

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It looked weak. So in 1954, Congress decided

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to fix it. They drafted an amendment to the Civil

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Service Retirement Act, Public Law 769. Which

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everyone just called the Hiss Act? Correct. And

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the intent was surgical. They wanted to make

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sure that anyone convicted of crimes related

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to national security or, and this was a big one

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at the time, anyone who pleaded the Fifth Amendment

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during those security investigations would be

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stripped of their pension. So the message was

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clear. If you're a spy or if you refuse to testify

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about being a spy, the government cuts off the

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check. That was the pitch. And initially, it

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worked exactly as planned. The law passed on

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September 1st, 1954. The Treasury immediately

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stops sending checks to Alger Hiss. Mission accomplished.

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The bad guy pays the price. But this is where

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the legislative rage problem kicks in, because

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when you write a law in anger, you tend to cast

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the net wide to make sure the target doesn't

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slip through. You sent me the text of the act,

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and it lists job -related federal felonies. It

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doesn't just say treason. No, and that is the

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fatal flaw. To ensure they caught Hiss and anyone

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vaguely like him, They broadened the language

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to include a whole host of felonies involving

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a breach of trust. The logic was, if you betray

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the public trust in any federal job, you don't

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deserve the public pension. Which, you know,

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on a bumper sticker sounds reasonable. No pensions

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for crooks. But in practice... In practice, it

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was a total disaster. Between 1954 and 1961,

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the government started enforcing this law aggressively.

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And they weren't catching Soviet sleeper agents.

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They were catching mail carriers. This was the

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part of the research that really surprised me.

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You have these cases of postal workers who maybe

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stole $5 from an envelope or maybe they took

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a magazine from the mail room. Right. Now, we

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have to be clear. These are federal felonies.

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Tampering with the mail is a serious crime. You

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shouldn't do it. But we have to ask, is stealing

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$5 from a birthday card a national security threat?

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Not exactly espionage. Is it on the same level

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as selling state secrets to Moscow? I think most

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reasonable people would say no. But under the

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Hiss Act, the penalty was mandatory. Mandatory

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and automatic. It created this massive justice

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problem, as legal scholars call it. Let's paint

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a picture here. Imagine you're a judge in 1958.

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You have a postman in front of you who stole

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$10. You look at the case and say, OK, you broke

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the law. I'm going to give you a suspended sentence

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and a small fine. Because you think you're giving

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him a slap on the wrist. The crime was minor.

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Exactly. The judicial system is trying to be

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proportional. But the moment that conviction

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hits the books, the HISS Act triggers administratively.

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The Civil Service Commission steps in and says,

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convicted of a job -related felony, pension gone.

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So that $50 fine actually costs the postman his

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entire life savings. We're talking about an annuity

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worth tens of thousands of dollars back then.

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That's hundreds of thousands in today's money.

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It effectively turned a minor theft into a life

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-ruining event. The punishment was completely

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disproportionate to the crime. And it wasn't

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just Postman. There was a report in the New York

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Times from June 1960 that highlighted an even

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uglier side of this. Oh, right. The GI pensions.

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Yes. The law was written so broadly that it was

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voiding pensions for veterans if they committed

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these breaches of trust while in the civil service.

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So now you have Congress, who wanted to look

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tough on communism, having to explain why they're

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stripping retirement benefits from World War

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II vets. for minor offenses. That is a political

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nightmare. You set out to hunt a wolf and you

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end up shooting the family dog. That's a very

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apt analogy. And the pressure started to mount

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almost immediately. By 1959, you have hearings

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where Congress is basically saying, oops, we

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went too far. It's rare to see Congress admit

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a mistake that quickly. Usually they double down.

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Well, the optics were terrible. You can't really

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run for reelection on a platform of starving

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veterans. So in 1961, they passed a fix. Public

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law, 83 -769. They amended the Hiss Act to restore

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benefits for employees involved in minor offenses

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not connected with national security. OK, so

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sanity prevails. They narrow the scope back to

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what they originally claimed they wanted, spies

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and traitors. If you steal a letter, you pay

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a fine, but you don't starve in your old age.

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Correct. The balance was restored. The innocent,

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or at least the minorly guilty, were protected.

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The law was now focused solely on national security.

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But here is the plot twist that I absolutely

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love. While Congress is scrambling to fix the

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law for the postman, the man who started it all,

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Alger Hiss, is sitting in the background plotting

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his comeback. He was. And this brings us to 1972.

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Alger Hiss is out of prison. He's broke. And

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he decides to sue the U .S. government to get

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his pension back. The audacity is incredible.

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I'm the guy you wrote the law for, but I want

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my money. But he wasn't arguing that he wasn't

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a spy, right? He wasn't relitigating the espionage

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charges? No, and that's what makes this a fascinating

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legal case. This wasn't about guilt or innocence

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regarding the espionage. It was about the Constitution.

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Specifically, a clause that forbids ex post facto

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laws. Latin for after the fact. Exactly. The

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framers of the Constitution were very specific

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about this. The government cannot pass a law

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today that punishes you for something you did

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yesterday. If it wasn't illegal or if the specific

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punishment wasn't established at the time you

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did the act, they can't retroactively apply it

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to you. So let's map the timeline here. Hiss

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is convicted in 1950. The Hiss Act is passed

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in 1954. You see the problem. When Hiss committed

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his crimes and when he was convicted, the penalty

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was prison. It was not loss of pension. That

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penalty didn't exist yet. So the government effectively

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moved the goalposts after the game was over.

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That's exactly how the court saw it. In the case

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Hiss v. Hampton, the suit was actually filed

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by the ACLU on behalf of Hiss and another plaintiff

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named Richard Strasburger. And the U .S. District

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Court ruled on March 3rd, 1972. They sided with

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Hiss. The Emergency Civil Liberties Committee

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hailed it as a massive victory. The court said

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that denying the pension was penal rather than

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regulatory. Penal rather than regulatory breaks

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that distinction down for me because that seems

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to be the pivot point. It's crucial. If the government

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changes a regulation, say they change the retirement

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age for everyone moving forward, that's fine.

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That's just managing the workforce. But the court

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said this law was clearly designed to punish.

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It was a penalty. And because it's a penalty,

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it has to follow the strict rules of criminal

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law. And rule number one is you can't punish

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retroactively. So because Congress was so eager

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to hurt his specifically, they rushed a law that

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violated the Constitution. And because of that

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violation, Hiss got his money back. He did. The

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government had to restore his pension with back

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pay. That is just amazing. The irony is dripping

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off the page. The Hiss Act successfully hurt

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a bunch of random mail carriers for seven years.

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But when it tried to touch Alger Hiss, it bounced

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right off the Constitution. It's a powerful reminder

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that the Constitution protects everyone. Even

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the people we designate as the bad guys. It's

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designed to stop exactly this kind of emotional,

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reactive legislation. So Hiss gets paid. The

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postmen get their benefits restored. You'd think

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the Hiss Act would just fade away at this point.

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But it stays on the books, right? Yeah. Just

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without the retroactive part. It does. It's still

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federal law. If you commit a treasonous act today,

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you'll lose your pension. But as we move into

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the modern era, we start to see how selective

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the application really is. Let's fast forward

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to 1977. We have the case of Richard Helms, former

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director of the CIA, a titan of the intelligence

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community. A very different figure from Alger

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Hiss, certainly in terms of public perception

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at the time. But he gets into trouble. He pleads

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no low contender, no contest to two counts of

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misleading Congress. He lied to the Senate Foreign

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Relations Committee about CIA operations in Chile.

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Now, lying to Congress about national security

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operations, that feels like it lands squarely

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in the breach of trust territory the Hiss Act

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was supposed to cover. You would certainly think

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so. It's a felony. It involves national security.

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But when it came time to decide on his pension,

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the Department of Justice issued a ruling saying

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the Hiss Act did not apply. How did they justify

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that? It came down to the specific statutes he

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was charged under and the technical definitions

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of national security offenses in the act. They

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parsed the language very carefully. He kept his

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annuity. So we have a pattern emerging. The law.

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hammers the little guy, misses the specific target

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it was named after, and then gives a pass to

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the powerful CIA director. It's not exactly a

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shining example of blind justice. And this double

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standard is what keeps bringing the Hiss Act

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back into the headlines. Every time a politician

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gets caught doing something terrible, the public

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asks, wait, do we still have to pay them? Which

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brings us to a name that screams mid -2000s scandal.

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Duke Cunningham. Duke Cunningham. U .S. Representative.

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Fighter pilot. And as it turned out, massively

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corrupt. In 2005, he pleaded guilty to taking

00:12:03.179 --> 00:12:06.279
millions of bribes. We're talking cash, yachts,

00:12:06.279 --> 00:12:08.500
antique furniture. And naturally, people were

00:12:08.500 --> 00:12:10.919
furious. Why should a guy who sold his office

00:12:10.919 --> 00:12:13.980
for a yacht get a taxpayer pension? Senator John

00:12:13.980 --> 00:12:16.379
Kerry jumped on this at the time. He introduced

00:12:16.379 --> 00:12:19.039
the Federal Pension Forfeiture Act, which everyone

00:12:19.039 --> 00:12:21.929
called the Duke Cunningham Act. The goal was

00:12:21.929 --> 00:12:24.350
to close the loopholes. They wanted to make it

00:12:24.350 --> 00:12:27.070
crystal clear that lawmakers convicted of official

00:12:27.070 --> 00:12:30.389
misconduct lose their pensions, period. Because,

00:12:30.450 --> 00:12:32.549
correct me if I'm wrong, the original Hiss Act

00:12:32.549 --> 00:12:35.250
was a bit murky on whether it applied to Congress

00:12:35.250 --> 00:12:38.049
itself. It was mostly for civil servants. It

00:12:38.049 --> 00:12:40.389
was ambiguous. Congress has a long history of

00:12:40.389 --> 00:12:42.190
writing strict laws for the executive branch

00:12:42.190 --> 00:12:43.789
while leaving a little wiggle room for themselves.

00:12:44.149 --> 00:12:46.490
Kerry wanted to shut that door. So did the Duke

00:12:46.490 --> 00:12:48.950
Cunningham Act pass. It died in committee. I

00:12:48.950 --> 00:12:52.039
am shocked. Shocked, I tell you. I know. Stunning.

00:12:52.580 --> 00:12:55.600
But the public pressure didn't go away. The anger

00:12:55.600 --> 00:12:58.940
was real. So eventually, on September 12, 2013,

00:12:59.399 --> 00:13:02.200
Congress did pass an expansion. They extended

00:13:02.200 --> 00:13:04.440
the provisions of the Hiss Act to explicitly

00:13:04.440 --> 00:13:08.179
include members of Congress. Okay, so 2013, we

00:13:08.179 --> 00:13:10.799
finally have a law. If a congressman commits

00:13:10.799 --> 00:13:13.440
a felony related to their job, they lose the

00:13:13.440 --> 00:13:15.759
pension. That's the rule. That is the rule. And

00:13:15.759 --> 00:13:18.259
they've even tried to expand it further. In 2019,

00:13:18.639 --> 00:13:20.960
Senator Steve Daines proposed a bill to strip

00:13:20.960 --> 00:13:23.379
pensions from civil servants convicted of child

00:13:23.379 --> 00:13:25.840
molestation. This was following an investigation

00:13:25.840 --> 00:13:28.779
into an Indian Health Service pediatrician named

00:13:28.779 --> 00:13:31.519
Stanley Patrick Weber. Which seems like the easiest

00:13:31.519 --> 00:13:33.659
yes vote in history. I mean, if we were taking

00:13:33.659 --> 00:13:36.000
pensions from postmen for stealing letters in

00:13:36.000 --> 00:13:38.279
the 50s, surely we can take them from a pediatrician

00:13:38.279 --> 00:13:40.320
convicted of that. You would think. But this

00:13:40.320 --> 00:13:42.179
brings us to the reality check portion of our

00:13:42.179 --> 00:13:44.879
deep dive. Because passing a law is one thing.

00:13:45.200 --> 00:13:47.299
Enforcing it, actually reaching into a bank account

00:13:47.299 --> 00:13:49.379
and stopping a check, is something else entirely.

00:13:49.799 --> 00:13:51.960
This is the part that made me stop and reread

00:13:51.960 --> 00:13:54.659
the notes. You found a report from the National

00:13:54.659 --> 00:13:58.279
Taxpayers Union Foundation from 2022. They went

00:13:58.279 --> 00:14:00.779
looking for the bodies. They wanted to know how

00:14:00.779 --> 00:14:02.720
many congressional pensions had actually been

00:14:02.720 --> 00:14:05.740
stripped since that 2013 law passed. And the

00:14:05.740 --> 00:14:09.629
answer is zero. Zero. As of that 2022 report,

00:14:09.950 --> 00:14:12.789
no congressional felons have lost their taxpayer

00:14:12.789 --> 00:14:16.110
-funded pension. But we have definitely had Congress

00:14:16.110 --> 00:14:19.070
members convicted of crimes since 2013. We absolutely

00:14:19.070 --> 00:14:21.570
have. But this goes back to the difference between

00:14:21.570 --> 00:14:24.610
performative legislation and practical application.

00:14:25.309 --> 00:14:27.850
The way these laws are written, there are so

00:14:27.850 --> 00:14:30.269
many off -ramps. Like what? How do they get out

00:14:30.269 --> 00:14:32.429
of it? Well, first, the conviction has to match

00:14:32.429 --> 00:14:35.350
the specific list of offenses perfectly. If they

00:14:35.350 --> 00:14:37.629
plead down to a lesser charge or a different

00:14:37.629 --> 00:14:39.610
charge that isn't on the list, they might keep

00:14:39.610 --> 00:14:41.590
the money. Then there's the appeals process.

00:14:42.049 --> 00:14:44.350
As long as you are appealing your conviction,

00:14:44.649 --> 00:14:47.210
you keep getting the check, and appeals can take

00:14:47.210 --> 00:14:49.750
years. And let's be honest, pensions are property,

00:14:49.990 --> 00:14:52.899
legally speaking. That is the core of it. Once

00:14:52.899 --> 00:14:55.039
you earn a pension, it is considered your property.

00:14:55.139 --> 00:14:57.700
It's deferred compensation. The courts are extremely

00:14:57.700 --> 00:14:59.799
hesitant to let the government seize property

00:14:59.799 --> 00:15:02.480
without an incredibly high bar of due process.

00:15:02.820 --> 00:15:06.179
It's hard to do. So let's recap this wild trajectory.

00:15:06.519 --> 00:15:10.419
We started in 1954 with a law designed to destroy

00:15:10.419 --> 00:15:13.460
Alger Hiss. It failed to hurt Hiss because of

00:15:13.460 --> 00:15:15.720
the Constitution. It accidentally hurt innocent

00:15:15.720 --> 00:15:18.559
mail carriers and veterans. It was fixed to stop

00:15:18.559 --> 00:15:21.299
hurting them. It was expanded to supposedly hurt

00:15:21.299 --> 00:15:24.440
corrupt congressmen. And now, decades later,

00:15:24.639 --> 00:15:26.679
it's not hurting the congressmen either. That

00:15:26.679 --> 00:15:29.320
is a painfully accurate summary. The Hiss Act

00:15:29.320 --> 00:15:31.440
is essentially a ghost story at this point. It's

00:15:31.440 --> 00:15:33.360
a scary name that politicians invoke to show

00:15:33.360 --> 00:15:35.259
they are tough on corruption. But when you try

00:15:35.259 --> 00:15:38.039
to actually use it, it vanishes. It feels like

00:15:38.039 --> 00:15:40.179
we keep trying to use the paycheck as a gavel.

00:15:40.320 --> 00:15:43.100
We have this instinct that justice means hitting

00:15:43.100 --> 00:15:45.039
them in the wallet. It's a very common instinct.

00:15:45.299 --> 00:15:48.539
We equate financial loss with moral punishment.

00:15:48.899 --> 00:15:51.419
But the legal system separates those two things.

00:15:51.899 --> 00:15:54.960
Criminal law puts you in prison. Civil law handles

00:15:54.960 --> 00:15:57.379
money. When you try to mix them, when you try

00:15:57.379 --> 00:15:59.440
to use a pension fund as a tool for criminal

00:15:59.440 --> 00:16:02.080
justice, it gets messy. And clearly ineffective.

00:16:02.659 --> 00:16:04.460
It highlights the difference between passing

00:16:04.460 --> 00:16:07.659
a law to send a message versus how the law actually

00:16:07.659 --> 00:16:10.240
works in court. Congress loves the performance.

00:16:10.519 --> 00:16:13.139
We are stripping pensions. It sounds great in

00:16:13.139 --> 00:16:16.059
a press release. It wins votes. But the practical

00:16:16.059 --> 00:16:18.700
application involves the Constitution. property

00:16:18.700 --> 00:16:22.240
rights and complex administrative codes. And

00:16:22.240 --> 00:16:25.039
usually the practical realities grind the performative

00:16:25.039 --> 00:16:27.460
intent down to dust. And maybe that's a good

00:16:27.460 --> 00:16:29.919
thing. Hearing about the postmen in the 50s,

00:16:29.919 --> 00:16:31.519
maybe it's better that the government finds it

00:16:31.519 --> 00:16:33.659
hard to seize people's livelihoods. There is

00:16:33.659 --> 00:16:35.840
a strong argument for that. The procedural hurdles

00:16:35.840 --> 00:16:38.460
that protect a corrupt congressman are the exact

00:16:38.460 --> 00:16:40.379
same hurdles that protect the innocent civil

00:16:40.379 --> 00:16:43.120
servant. The Constitution is a blunt instrument.

00:16:43.399 --> 00:16:46.500
It protects the unpopular and the guilty just

00:16:46.500 --> 00:16:48.440
as much as the innocent. Well, there you have

00:16:48.440 --> 00:16:51.399
it. The Hiss Act. A snake that bit the wrong

00:16:51.399 --> 00:16:54.259
people, lost its fangs when it tried to bite

00:16:54.259 --> 00:16:56.820
the right person, and is now sitting in the corner,

00:16:57.019 --> 00:16:59.679
largely toothless. A perfect description. It

00:16:59.679 --> 00:17:01.779
really makes you wonder, though. As you process

00:17:01.779 --> 00:17:03.460
all this, think about the broader implications.

00:17:04.220 --> 00:17:07.200
If a law named after a convicted spy couldn't

00:17:07.200 --> 00:17:09.500
even stop his pension because of the Constitution,

00:17:09.980 --> 00:17:12.940
what does that tell us about the real limits

00:17:12.940 --> 00:17:16.359
of congressional power? We tend to assume lawmakers

00:17:16.359 --> 00:17:19.160
can just legislate away bad behavior by threatening

00:17:19.160 --> 00:17:22.119
financial ruin. But if the Constitution walls

00:17:22.119 --> 00:17:24.920
off our property and our pensions from retroactive

00:17:24.920 --> 00:17:27.940
rage, we might need to rethink how we actually

00:17:27.940 --> 00:17:29.920
hold the powerful accountable because clearly

00:17:29.920 --> 00:17:32.160
the paycheck isn't the silver bullet we thought

00:17:32.160 --> 00:17:33.960
it was. It's a fascinating question to leave

00:17:33.960 --> 00:17:36.220
on. Indeed. Thank you for walking us through

00:17:36.220 --> 00:17:38.640
that legal labyrinth. And to everyone listening,

00:17:38.799 --> 00:17:40.740
thanks for diving deep with us. We'll catch you

00:17:40.740 --> 00:17:41.180
on the next one.
