Courts in the “substantive due process” era — roughly 1905 to 1937 — regarded property not as simply the physical things themselves, but as the options pertaining to those things, and recognized that to destroy options was exactly the same as confiscating property — even though the physical objects as such might be left in the possession of the owners. The economic validity of their reasoning is demonstrated perhaps most dramatically in the case of New York City rent-controlled buildings, whose value is often reduced to negative levels (note abandonment despite the risk of legal penalties), by simply reducing the landlord’s options, while leaving him in sole possession of the physical structure itself. Conversely, working men possessing no physical property nevertheless had options of employment alternatives, and to reduce these alternatives was also considered by the Supreme Court to be a deprivation of property in violation of the Constitution.374 The economic reasoning is as valid here as in the case of business property, for it is essentially the same principle that property rights are basically options rather than physical things. A more fundamental constitutional question regarding the Supreme Court’s role in the “substantive due process” era was whether the protection of property under the Fifth and Fourteenth Amendments required the courts to monitor the economic substance of legislation. In short, the economic argument shows only that there has in fact been a confiscation of property, while the legal question is — was it under due process of law? Later decisions repudiating economic “substantive due process” either deny or sidestep the confiscation of property.
Post-1937 Supreme Court decisions somewhat ostentatiously cited decisions of the economic “substantive due process” era as examples of what it was
Trends in American law in the twentieth century — and especially in the Warren Court era — have included (1) a growing volume of law and litigation in general, and especially of laws and litigation growing out of decisions made by institutions insulated from feedback — especially administrative agencies and the federal judiciary, (2) a changing role of appellate courts from defining the boundaries of other institutions’ discretion to second-guessing the substance of the decisions made by those other institutions, and (3) an ever more apparent social partisanship, as distinguished from biased principles, in applying the law.