government under the articles * unicameral legislature (one house, one group to make laws) * one...

Constitutional Convention 1787

Government Under the Articles* Unicameral Legislature (one house, one group to make laws)* One vote per state (regardless of size)* 2/3 majority needed to pass legislation (super majority- very tough)* Unanimous vote needed to amend Articles (almost impossible)

Weaknesses of the Articles* No national executive (who will enforce the laws?)* No national court system (who will judge the laws?)* National government could not collect taxes (How will they pay?)* National government could not raise an army (protect?)* National government could not regulate trade

Problems under the Articles* Currency Problems: Many states printed their own money. The national currency, meanwhile, became almost worthless

* Intrastate Commerce: States placed tariffs on each other's goods. This, combined with currency problems, led to a sharp decline in intrastate commerce

* Foreign Trade: Other countries placed tariffs and trade restrictions on US goods; the US was not able to reciprocate. The absence of a strong navy also left US merchant ships vulnerable to pirates.

* Foreign Affairs: The inability of the national government to raise an army left the US vulnerable. For example, key provisions of the Treaty of Paris, which ended the Revolutionary War, were not enforced. As a result, the British continued to occupy forts in the Northwest territory -- landed that had technically been ceded to the US.

* Conflict between states, Virginia v Connecticut and Virginia vs Maryland

National Government was broke. Shay’s Rebellion

What should we do with the Articles?

What should we do with the Articles?

They were given permission by the national congress under the Articles to meet and make a list of suggestions for possible revisions.

This mind-set allowed a certain amount of freedom to create total change because in the end a delegate could say – we’ll its just a suggestion.

The Rule of Secrecy was intended to protect the reputation of the delegate.

Structure of the Legislative Branch?

Structure of the Legislative Branch?Census 1790


Plan Cost (-) Benefits (+)

Rep basedOn Pop.

Equal Rep.

Rep. based On Property

VA PlanNJ Plan


Connecticut compromise- 2 Houses

one house based on equal representation- Senate- 2 per state (State’s house)

Another house based on population (435 total) seats shift with population shift (house of rep.) (The people’s house)

House of Reps.- $ bills start in House- “the people decide what they give to the government” Property Rights

both houses “check and balance” each other

Specialization and Division of Labor and Division of Power

Will the slave population count toward representation?

Slave Population and Representation?


Full Rep.

No Rep.

Taxation

Will the slave population count toward representation?

North feared- unfair representation by the South

South feared northern dominance and argued that the southern lifestyle that also benefited the North led to small populations by South. (Division of Labor and Economies of Scale)

taxation and representation could also be based on property values

3/5th Compromise (the federal ratio)

# derived from a previous amendment to the articles of conf. in 1783 changed taxation from property to population- south objected if slave population counted Virginia said- only ½ slaves New England said ¾ slaves Madison suggested 3/5th

amendment later failed to be ratified but the number was remembered by Madison

Madison suggested the old Federal Ratio (3/5th)

Not counting all of the slaves gave the South a sense of urgency to increase #, also this resulted in unfair political impacts- slave states dominated Presidency, electoral college, HOR, speaker of house, Supreme Court . In addition to being a social and economic evil, Slavery now became a political evil

They were taxed on representation Slave trade ended 1808

Powers to Congress- Enumerated

$ Power of the Purse $

$ Power of the Purse $- Fiscal PolicyCongress has the ability to raise money (tax and borrow, create currency (Fed. Prints), issue bonds, and approve the budget. – All money bills start in the house

Congress Determines Fiscal Policy- Spending and Taxation and Borrowing

Congress also has the ability to determine who receives those national funds.

The “Power of the Purse” or the power to provide or cut funding has been a powerful unwritten check that the Legislative branch has had over the other branches and the states.

1913- 16th Amendment Federal income tax

Commerce Compromise

Tariffs?


Tariffs on imports

Tariffs on Exports

Tariffs on Slave trade

Commerce Compromise

South feared North would increase shipping rates, North feared that southern slavery would expand out of control.

Small states feared that larger states would squeeze them out of foreign markets.

The South threatened Congress to have the impossible 2/3 vote on all trade laws.

Southerners (South Carolina and Georgia) wanted slave trade untaxed

(MA, NH, SC, CT, GA) helped write up a compromise

Commerce CompromiseCompromise

South to import slaves tax free- importation of slaves to end in 20 years (1808)

No tax on exports (South and NE states wanted to send supplies to the highest bidder) (law of supply)

Power to regulate and tax imports except slaves (protection from foreign competition) Good for Business but what about Consumers?

Congress could decide on foreign trade with a simple majority vote

May regulate interstate trade

Results on slave trade- cheapened value of slaves= decrease in slave conditions

3/5th + no tax on slaves + 20 year limit (hoarding) = explosion of slave trade

SC has more slaves than white people- south doubles its voting power

Other Powers to Congress- Enumerated Tax

Declare War

Post offices, Bankruptcy, Copyrights and Patents

Create Laws

Regulate immigration

Check and Balance the President and Supreme Court

Article I Section 8- expressed powers

Necessary and Proper clause

Commerce Compromise

$ Power of the Purse $

HOR – majority rules, Senate- majority rules but in reality 60/100 to pass a bill

Economic Powers to Congress

Who elects the Reps.?

Who Elects the Reps?


The People

The State Leg.

The Nat.Leg

Other

Who elects the Reps.?

1787- House of Reps- people, Senate- State Leg

Now- HOR- people, Senate- people , if a vacancy occurs during the term

Governor from that state appoints Senator to fill seat. (amendment 17 1913)

HOR- people’s branch, Senate was the state’s branch – this has changed since 1913, The senate use to be elected by state leg, therefore forcing National Senators to adhere to state rights. Now they are elected by the people which forces to concern themselves more with the “General Welfare” and less than state rights.

(Knowledge, information, efficiency, rational choice, Nash Equilibrium, self interest.)

Term length of the Reps.?

Term Length?


Short (1-3 yrs.)

Med. (4-6 years)

Long (7+)

Life

Term length of the Reps.?

1787 and now

H.O.R. – 2 years

Senate- 6 years

HOR- every 2 years- people move, attitudes changeNew ideas

Senate- every six years- difficult and expensive to have frequent elections.

stability

Is re-election possible?

Re-election?


No

YesWith limits

Yes unlimited

.

Is re-election possible?Yes- Unlimited then and now

Should it be amended?

Thomas Jefferson feared unlimited re-election claiming that history proved that people in power will do whatever it takes to stay in power.

Game Theorist would say that if there is a repeating game (re-elections) then it is in the self interest of the incumbent to satisfy the needs and wants of the voter.

This isn’t too much different than a store owner who wants customers to return to their shop.

Incumbents have the advantage of reputation and people have more information thus reducing the risk.

Type of Executive?

Type of Executive?

Question:

What is the relationship between the Legislative branch and the Executive?

The Executive only carry out the will of Congress? (Division of Labor?)

Or

The Executive be its own independent branch with separate powers?

Division of Power

(efficiency – less lag)

The Executive?


Single

1 w/ a groupOf advisors

Multiple executives

Multiple w/group

Type of Executive?

1787- single president and vice president with the ability to create positions with advice and approval by the senate vs. HORVP presides over the Senate and cast the tie breaking vote

national/state (make decisions) vs people (pay for it)

Executive/Senate vs HOR

Hamilton first suggest the term checks and balances to discuss relationship between S/HOR.Now/Tradition

Single President/Vice President with a cabinet approved by Senate

When Washington created the first cabinet he eliminated the need for Senate advice this limited their role to simply approval- thus changing a working relationship into a competitive check

National vs State and People

Executive vs Senate and HOR

The formation of the cabinet- also lead to an expanded executive branch

President & Vice PresidentCabinet members are also secretaries of executive departments

Executive Departments and Umbrella Agencies and other programs and chairman (Division of labor and specialization)

Type of Executive?

http://www.loc.gov/rr/news/fedgov.html



Who elects the Executive?



The People

State Leg.

Congress

Other?

Who should elect the President?What is the relationship between the Legislative branch and the Executive?

Should the Executive only carry out the will of Congress?

Or

Should the Executive be its own independent branch with separate powers?

Create your own system that attempts to create equilibrium amongst all ideas.

1/3 of delegates want state legislatures- federalism (will strengthen states)1/3 of delegates want the people to vote- popular sovereignty1/3 of delegates want the national legislature to vote- Checks and Balances/Separation of Power

Other ideas to consider:

Self interest- if the President will do what the voters want in order to stay in power, who do we want him to please? Remember the President will want to maximize his utility (satisfaction)

Key note: Don’t forget about the debate between large states and small states and urban areas and isolated areas.

Who elects the Executive?Electoral College System

State Primaries throughout year – rules determined by the statesPeople vote for electors that are selected by state legislators

number of electors per state equals HOR + S from state

usually a winner-take all but it depends upon state rules (plurality)

electors cannot currently be in government office

highest number of electoral votes- president, 2nd highest VP (changed by 12th amendment 1804)

Electoral votes needed= 270 , this is a majorityif 270 not obtained run-off election in HOR

elector votes are cast in December in state capitals

inauguration in January

A compromise that satisfies- people, states, national congress, big states and small states


Fear of Plurality People States National Ct. Comp

How does the Electoral College reflect the different self interest?

Run-off ElectionIn HOR

No single issue candidate

No regional candidates

Majority 270

Popular vote doesn’t guarantee victory

Vote for electors

Run-off in HOR

Set state rules regarding

PrimariesAnd voting process

Rep. based on HOR + S

Run-off in HOR

Compromise between state and people votesCompromise between urban and rural vote

Nation is a 2 party system3rd party acts only as a spoiler- why?

Some people feel it is unfair and outdated while others claim it is the very reason why our Government hasn’t gone through major changes.

Does it allow voters to have a voice?

How does it represent the founder’s fear of a majority?

Powers and Roles of the Executive?

Separation of Powers

Economic perspective on a Separation of Powers and Checks and Balances

Division of Labor

Specialization

Division of Power (economic perspective)

supporters of founding fathers onFree Market Assumptions Free Market (Ind.) Government (officials)

1. People act in self interest

2. People acting on self interest respond to incentives (predictable)

3. When pursuing self interest, people, by engaging in voluntary exchange, benefit society by driving resources to their most useful purpose. (Wealth Creation)

?Voluntary exchange Non-Voluntary exchange

Separation of PowersGovernment officials in the name of receiving votes, money, favors will act predictability.

The same invisible hand that we see in the market would lead to government induced transactions. But unlike the market, mutual voluntariness is absent in government transactions (taxation, regulation).

The government’s ability to coerce (force others to do something) gives people incentive to form groups that try to influence government policy to benefit them but not society as a whole- redistribute wealth.

In other words, when you buy something both the buyer and the seller benefit, otherwise there wouldn’t be a transaction. Therefore both parties volunteer to engage in the transaction which allocates resources to that purpose which leads to wealth creation. But when the government creates a transaction in the form of laws and acts, it benefits the official but it often does not benefit society as a whole, this often leads to re-distribution of wealth.

In order to increase the level of “mutual volunteerism” the founding fathers created a system that forced officials to gain approval form different branches that represent the different states and individuals.

Remember the House represents the people, the Senate the state, and the Ex.- national government.

Groups and individualsie – state interest, interest groups, specific industries, unions, etc.

Different types of majorities.Simple- 51%Super- 2/3 or 3/4Unanimous

The greater the risk to individual rights the greater the majority must be to ensure greater levels of mutual agreement by all or at by most.

Powers and Roles of the Executive?“Art. II- The executive power shall be vested in a President of the United States”- broad power leads to Increase of power.

roles chief leg (#1 lawmaker) veto, proposal, appeal

chief exe (#1 law enforcer) executive orders

chief diplomat (# 1 diplomat) treaties and agreements

chief citizen (#1 citizen)

Chief of state (#1 representative of US)

commander in chief (#1 general)- war making power, rationing power

chief judiciary- pardon and reprieves chief administrator (The boss of the federal gov’t)- appointment, creates the budget, agendas

Executive privilege- tradition- established by separation of powers

Treaties, Executive – agreement, ex-leg agreement

Powers and Roles of the Executive?Presidential Powers and Congressional Relationship

Less Power More Power

Topic -------------------------------------------------------------------------------------------------------0 1 2 3

Executive no power 2/3 senate approval 51% Congress power to create ordersno approval

Diplomacy no power 2/3 Senate 51% Congress no approval neededtreatiesLeg- Veto no veto 51% congress override 2/3 Override absolute

Pardon no power 2/3 approval 51 % approval no approval needed

Appointment no power 2/3 senate approval 51 % congress no approval needed

War making no power approval needed approval not needed absolute Congress controls funding

Debate over Checks and Balances and Efficient

Presidential Term and Re-election?

Term Length of Executive?


Short (1-3)

Medium (4-6)

Long (7+)

Life

Re-election?


No

Yes - limited

Yes- unlimited

Presidential Term and re-election?

1787- 4 years – unlimited re-election

Thomas Jefferson’s letters to Madison and Washington- Washington’s farewell address and refusal of 3rd term

Created a tradition of a two term limit

FDR broke from tradition elected in 1932, 1936, 1940, 1944. FDR died in office.

22nd amendment 1947- 2 term limit (10 years total)

Judicial Branch structure

Judicial Branch structure Dual Court System

Supreme CourtFederal Court State Court

Federal Court of Appeals

Lower Federal Courts based on topic, location, parties involved (created

by congress)

State Superior Court

State Appeals Court

Lower State Courts based on topic, location, parties

involved

Division Power

Division of LaborAnd Specialization

Supreme Court

Supreme Court9 Supreme Court Justices (1 of which is

the Chief Justice)

Appointed by the President

Approved by the Senate

Life long term

Impeachment possible

Traditions and debates of current Government

Traditions and debates of current Government

Federalist vs Anti-Federalist

“A Republic if you can keep it”- voting and pluralism

Checks and Balances

Judicial Review

Executive Traditions

Power of the Purse- earmarks, interest groups, pork

Bill of Rights Ratification process

Amendment Process

Unwritten Power- implied power

Political Parties

The Fed and Monetary Policy- a 4th branch?In 1913 – A new organization was created to aid on Economic matters.

The Federal Reserve became our Central Banking system

The Federal Reserve is independent from our government but it is extremely important in understand money and our economy

This extremely important body was not created by our Constitution and no member on the board is elected by the people

Later creation of Federal Reserve which is in charge of monetary policy. They determine to the supply of in circulation and they increase or decrease interests rates on federal loans. It also regulates banks, provides financial services, and stabilizes our banking system

The Federal Reserve- NOT CREATED BY CONSTUTION CONVENTION!!! And we don’t vote on one member. Yet our lives and economy might be impacted more by

the “Fed” then any other branch.

What Delegate would love this?

The Federal Reserve- NOT CREATED BY CONSTUTION

As stipulated by the Banking Act of 1935, the President appoints the seven members of the Board of Governors of the Federal Reserve System

They must then be confirmed by the Senate and serve for 14 years.

Once appointed, Governors may not be removed from office for their policy views.

The chairman and vice-chairman are chosen by the President from among the sitting Governors for four-year terms; these appointments are also subject to Senate confirmation.

In practice the chairman is often re-appointed, but cannot serve longer than one 14-year term as governor (or, if appointed to fill a position whose previous occupant had not served out their term, then 14 years plus the time remaining in the previous unexpired term).

By law, the chairman reports twice a year to Congress on the Federal Reserve's monetary objectives. He or she also testifies before Congress on numerous other issues and meets periodically with the Secretary of the Treasury.


Fed Chairman

Federal Reserve Board (7 members)

Federal open market committee (FOMC)

12 Regional Federal Banks

Privately owned U.S. banks and advisory councils

The FOMC is the committee responsible for setting monetary policy and consists of all seven members of the Board of Governors and the twelve regional bank presidents, though only five bank presidents vote at any given time.

The Federal Reserve System has both private and public components, and was designed to serve the interests of both the general public and private bankers. The result is a structure that is considered unique among central banks. It is also unusual in that an entity outside of the central bank, namely the United States Department of the Treasury, creates the currency used


According to the Board of Governors, the Federal Reserve is independent within government in that "its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government."

However, its authority is derived from the U.S. Congress and is subject to congressional oversight.

Additionally, the members of the Board of Governors, including its chairman and vice-chairman, are chosen by the President and confirmed by Congress.

The government also exercises some control over the Federal Reserve by appointing and setting the salaries of the system's highest-level employees.

Thus the Federal Reserve has both private and public aspects. The U.S. Government receives all of the system's annual profits, after a statutory dividend of 6% on member banks' capital investment is paid, and an account surplus is maintained. In 2010, the Federal Reserve made a profit of $82 billion and transferred $79 billion to the U.S. Treasury.

government under the articles * unicameral legislature (one house, one group to make laws) * one...

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peoples house house

national currency

national congress

national executive

slave population

legislative branch

government property

us vulnerable