ECONOMICS What Does It Mean To Me? THE CONSTITUTION An Economic Document

Why did the Constitution need to be written? ARTICLES OF CONFEDERATION In 1778, representatives from the 13 colonies met to write the ARTICLES OF CONFEDERATION. The Articles were written by a group of people with no tradition of working together. They were used to having a King, and being assigned land with specific conditions.

Their primary concern in writing the Constitution was to create a “weak” government, which included: No King No taxes Dependence upon the States for “donations” to the federal cause. PROBLEM: The Revolutionary War had created an enormous debt through the issuing of bonds, IOUs, “borrowing” food from the farmers, soldier’s pay. The new country needed money for debts, old and new.

Rivalries developed between the States. For example: *Virginia could pay officers with land in Ohio. *Maryland had to raise taxes, duties, and tariffs. They began taxing one another and, at one point, Maryland tried to tax the federal government. This would eventually result in the Supreme Court case: McCulloch vs. Maryland Additionally, the States needed money for their own debts.

McCulloch v Maryland In brief, McCulloch v Maryland involved: *the State of Maryland disagreed with Alexander Hamilton’s proposal to establish a Bank of the United States *Thomas Jefferson cited the Constitution saying it did not give Congress the power to establish a bank *Maryland imposed a tax on the Federal Bank by insisting that all banks not chartered by the State of Maryland pay a $15,000 tax. IMPLIED POWERS ENUMERATED POWERS The Supreme Court invoked the doctrine of IMPLIED POWERS in the Constitution, which allowed Congress to pass legislation in addition to the list of ENUMERATED POWERS specifically outlined in the Constitution.

THEN, New York began trading with France, while North Carolina began trading with Britain. Why was this a problem? HINT: How did these guys get along after the French & Indian War (Seven Years War) ? King George III of Great Britain King Louis XVI of France

Another problem: each state had it’s own currency. Money was just like carrots…..each state continued to print more. Why is this a problem? 1) rampant inflation 2) NY businessman selling in RI, wants NY money but will probably be paid in RI money.

In 1786, Madison and Hamilton called for the Annapolis Convention to work out trade problems. The result was that they agreed to meet again in Philadelphia for what is now known as the CONSTITUTIONAL CONVENTION.

Treaties Taxes Commerce Currency The Constitution stipulates solutions for: The Federal Government retains sole power in these areas.

Historically, Britain believed in an unwritten constitution with virtual representation by: King House of Lords House of Commons But, America wanted a republican form of government. Madison was afraid of factionalism resulting in the reemergence of the monarch or the rule by the elite.

the Representative does what is BEST for the citizen even if the citizen doesn’t know it Traditional definition of Republicanism is the Representative does what is BEST for the citizen even if the citizen doesn’t know it VS. Democracy (voting)

To prevent a “rule by the elite,” writers of the Constitution formed the concept of: CHECKS & BALANCES Executive branch Enforces laws (President) Judicial branch Interpret laws (Supreme Court) Legislative branch Makes laws (Congress) Power of appointment Approve appointments Veto power Override the veto Judicial Review Power of appointment Approve appointments

The greatest controversies occur when the President does something without Congress’ consent.

Originally, Senators were appointed by the House, so the Senate represented the State. The Eleventh Amendment states that individuals cannot sue the States. So…….the Senate preserves power and the State.

Most Federal income came from tariffs, because the south didn’t want property tax. WHY? Slaves were considered property. But the south wanted slave population counted in the census. WHY? For reapportionment and representation reasons For reapportionment and representation reasons. The result was the 3/5 COMPROMISE. Each slave counted as 3/5 person for taxation and representation purposes.

Article I, Section 8: Commerce clause Prohibits States from trade across national borders. Up to Civil War, Congress did little with commerce. After the Civil War, the commerce clause has been used to regulate business, civil rights, etc. Most government services you use are STATE services.

WHAT IS THE RELATIONSHIP BETWEEN GOVERNMENT AND INDIVIDUALS? The Constitution is more about what the State and National Government CANNOT do. The BILL OF RIGHTS protects individuals from the Federal Government. The FOURTEENTH AMENDMENT protects individuals from the State.

The End Virginia Meachum, Coral Springs High School, Coral Springs, FL