Now I understand that most people automatically conclude that blackmail should be an illegal action. But is there really anything wrong with it? Let's investigate:
Imagine if you are this guy:

and you catch this guy:

playing hide the kielbasa with this:

After taking one of these:

to your eyes, so you never have to see something like that again, you proposition Mr. Letterman and say that you are protected under your 1st Amendment Right to tell the public about his affair.
At this point you have done nothing immoral or illegal, you are simply stating your human rights protected under the Constitution.
Now let's say you request $2 million to keep your mouth shut and forgo your Constitutional right. It is now up to Dave to decide whether if it is worth having the public and his wife know about the affair or just pay you the money.
Blackmail is simply a voluntary exchange of goods. Everyone has the right to tell a secret as long as they have obtained that information legally. Sure they might be seen as a gossip or some creepy old white guy with bad facial hair but nothing is illegal about it. Now on the other hand Dave can go up to Joe and offer him money to not say anything and there is nothing illegal about it.
A CLEVER ANECDOTE:
You have a God given right to sleep and watch TV all day, and I would say most Americans are pretty damn good at it. But when you are offered a job you're employer says: "If you don't exercise your right to be the bum that you are, I will give you x amount of money per year." No harm no foul!
But if Joe initiates it, it becomes blackmail, but really it is only a voluntary exchange where both parties benefit. In this case it wasn't worth the $2mil to Dave so he "topsy turvy-ed that motha f@#ker" and told the world.
(Jump to 1:42 if you want this clip to make any sense)
Back to my point, if there ever really was one. In this scenario David Letterman never faced jail time or any loss to his personal freedoms and liberties. If he did, this of course, would be a forced exchange, and should be illegal. But what is ironic is that the government gets away with this every day, while Joe Halderman faces 15 years for exercising his Constitutional rights.
If the government is good at anything it would be coerced exchanges, where one party benefits and the other does not. Such examples are drafts and taxes, where people are forced into conceding to the government's terms and if they don't face jail time, and loss of their individual freedoms. But I could ramble about this for days, but instead I will leave you with this short lesson on governmental policy:
DON'T STEAL THE GOVERNMENT HATES COMPETITION.
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