L1: Constitutional Economics An Economic History of the United States Agenda Objective: 1.To understand economic conditions and policies in America in the founding period 1.To evaluate how these conditions and policies (as enshrined in the Constitution) established a framework for American economics Schedule: 1.Small Group Work 2.Whole Class Discussion Homework: None! Junior Thesis: 1.Final Draft Due Friday 2/13 by 2:30. Must conform to formatting described in Junior Thesis Reader.

New Unit An Economic History of the United States An Economic History of the United States: –This unit will examine the evolution of the American economy since its founding. –What type of things will we look at in a unit on economic history? Unit Schedule to Come

Constitutional Economics Today we have two goals: –To understand economic conditions and policies in America in the founding period –To evaluate how these conditions and policies (as enshrined in the Constitution) established a framework for American economics How did the Constitution establish a series of formal and informal rules that constrain the choices and activities of economic and political agents? –What does that mean?

Part One Goal: Understand economic conditions and policies in America in the founding period Task: Using your smartphone, laptop, or paper copy of the U.S. Constitution, read through the constitution and its first ten amendments. Explore: –What do you see the constitution saying (or not saying) about economics? –How did the Constitution establish a series of formal and informal rules that constrain the choices and activities of economic and political agents?

Part Two Goal: Evaluate how these conditions and policies established a framework for American economics Task: Below are two scholarly arguments about the nature of the Constitution as an economic document. Given your review of the Constitution, do you agree? Disagree? Other? –Charles Beard (1913): U.S. Constitution was the product of a wealthy bourgeois class seeking the retention of personal wealth, even to the point of exploiting the lower classes. Ex: The separation of powers in the Constitution was actually a means of allowing hegemony of resources in the hands of the rich. –Jonathan Macey (1987): The Constitution and the seperation of powers were created to hinder aggregate political and economic power. Discussion: What is the economic function of the United States Constitution?