Social Studies 12

Economics, Government and Law

We the people of the United States, in order to form a more perfect union, establish justice, insure domestic tranquility, provide for the

common defense, promote the general welfare, and secure the blessings of liberty to

ourselves and our posterity, do ordain and establish this Constitution for the United

States of America.

"The Preamble" to the Constitution

Why did the Constitution separate the powers of the Federal government into 3 branches?

Legislative Branch

How does a Bill become a Law?

The legislative branch of US government is the US Congress, created by article I of the Constitution. The upper-house of Congress is the US Senate the lower-house is the House of Representatives.

Main roles and powers:

To pass legislation (laws) Declare war Regulate trade Regulate money Impeach federal officials Override presidential vetoes (2/3 vote in each house)

Legislative Branch

The Congress shall have Power - To make all Laws which shall be necessary and proper for carrying into Execution the

foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any

Department or Officer thereof.

The "Elastic Clause"

Loose Construction - If does not say you CAN'T, lets do it! Grow the power of the Federal Government for the greater good of all.

Strict Construction - Must take it literal. Must limit the power of Government. Do not want Government to interfere with rights of States or the individual

Special powers & Responsibilities of Congress

Senate:Approve presidential nominations to the federal courts (including the Supreme Court, by majority vote) Approve treaties (by 2/3 vote) Serve as jury in impeachment trials-2/3 vote to removeSelect a Vice-President if the electoral college fails to

House of Representatives:Originate all spending ($) bills majority vote to impeach PresidentServe as prosecution in impeachment trial Select a President if the electoral college fails to

Requirements and terms of service:

Senate:Term: Senators serve unlimited 6 year terms, elected by popular vote (**note: The original Constitution called for Senators to be elected by the state legislatures, the 17th amendment changed this to a popular vote) Requirements: Senators must be over 30, 9 year citizens of the US and a resident of the state

House of Representatives:Term: Representatives serve unlimited 2 year terms, elected by popular vote Requirements: Representatives must be over 30, 9 year citizens of the US and a resident of the state

Representation:

Senate:Representation: Each state has 2 Senators

House of Representatives:Representation: Each state's number of representatives is proportional to population. The number of Representatives is fixed at 435 and division among the states is determined by the census (population count) conducted ever 10 years as required by the Constitution.

Executive Branch

Executive Branch

The executive branch of US government is composed of the President, his advisors and all federal agencies and their heads. Article II of the Constitution.Main roles and powers:

Chief Executive

Enforce the laws passed by Congress Issue executive orders, enforcing the law Act as the head of the federal bureaucracy and all federal agencies Nominate judges (including those to the Supreme Court, requiring Senate confirmation) Appoint government officials (some requiring Senate confirmation, some not)

Chief Diplomat

Act a representative of the United States to foreign governments - Foreign Policy Make treaties with foreign nations (require 2/3 vote in Senate for approval) Extend or rescind diplomatic recognition of foreign nations

Chief Legislator

Propose a federal budget Recommend proposed laws to Congress Veto legislation Approve legislation passed by Congress

Chief of State

Serve as ceremonial head of US Government Special powers & Responsibilities:JudicialGrant pardon (forgiving an individual of his/her crime(s)) Grant amnesty (forgiving a group of people of a specific class of crime)

Commander-in-Chief of Armed Forces

Supreme commander of all branches of US military Authorize use of US military for up to 60 days (without approval of Congress or declaration of war)

Requirements and terms of service:

Terms: President serves a maximum of 2 terms of 4 years (**note: the original Constitution allowed of unlimited terms of service, this was revised by the 22nd amendment in 1951) Requirements: President (or Vice-President) must over 35, a natural born citizen and a 14 year resident of the United States.

How the President is Elected...

Each State has a certain number of Electoral votes. This is based on how many representatives it has in Congress

On election day,in each State, all eligible voters cast a vote. Who ever wins this popular vote, gets to pick the "Board of electors" for that State.

The Electors sign a pledge to vote for the Candidate who picked them. Thus that Candidate Usually gets all of the electoral votes!

Electoral college vide- Mo Rocca

Electoral College

Maine and Nebraska are the only to states that allow their

Electoral votes to be split based on the popular vote!

So...

If a Candidate gets 50.1 % of the vote, He wins 100% of the electoral votes!

This means for the other 49.9% of the population in that State, Their votes DON'T count!

This is how Bush Lost the Popular vote, but won the Electoral!

50,456,002

47.87%

50,999,897

48.38%

271 266

Bush GorePopular

Electoral

Judicial Branch

Judicial Branch

The judicial branch of US government is composed of the Supreme Court and all of the lower federal courts as created by Congress. The judicial branch was created by article III of the Constitution. The most significant power of the judicial branch is that of judicial review, first stated by Chief Justice John Marshall in the 1803 case of Marbury vs. Madison, but not expressly granted the court by the Constitution.

Main roles and powers:Interpret the law Exercise the power of judicial review Chief Justice presides over trials of presidential impeachment

Judicial review:

Determine if laws passed by Congress are allowable by the Constitution Determine if treaties negotiated by the President and approved by the Senate are allowable by the Constitution Determine if actions by the President in enforcing the law are allowable by the Constitution Determine if laws passed by states are allowable by the Constitution

Jurisdiction (Supreme Court):

The Supreme Court hears cases of appeal from lower federal and state courts The Supreme Court has original jurisdiction (may hear a case first) in cases involving a state vs. state matter or a branch vs. branch matter

Requirements and terms of service:

Terms: Judges serve for life, they are nominated by the president and approved by the Senate but may be removed by an impeachment proceeding Requirements: There are no specific requirement for judgeship in the Constitution

Federalism within the United States system is the balancing of power between a Federal Government and State Governments. Federal Government is superior to the State Governments. Constitution is law of the land!power is divided among the federal and state governments. Anything not in the Constitution is reserved for the States (10th Amendment)

Video

Federalism

Delegated Powers or enumerated powers

Reserved Powers -

Concurrent Powers

Implied Powers

Federal Powers

State rights (powers)

The "Unwritten Constitution" and Precedents

ideas and processes that are part of American governmentthey are not actually in the Constitution. These ideas and processes came about through custom and precedent.

Judicial Review

Congressional Committees

Political Parties

President's Cabinet

Lobbying

- George Washington's first task as President of the United States was to appoint Secretaries (heads) of each of the executive departments.-Secretary of State Thomas Jefferson -Henry Knox was made Secretary of War. -Alexander Hamilton Secretary of the Treasury

. The formation of a cabinet to advise the president is a precedent set by George Washington.

The Constitution neither required nor suggested Washington do this. Since then every president has had one.

The today the cabinet is much lager and is comprised of the heads of the various federal agencies and departments as well as key advisors.

The Cabinet

- The power of the Supreme Court to declare laws unconstitutional is not in the constitution yet it has become one of the basic tenants of the checks and balances system. As previously discussed judicial review is a result of precedent set in the Marbury v Madison decision.

Judicial Review

A special interest group Asks Congress/President to pass laws that are favorable to their economic interest. Promise of large number of votes for cooperation.

Special Interest Group Example

Teachers, Tobacco Companies, Big Oil companies, Fire Fighters, Soccer Moms...

Lobbying-

Congressional Committees - Congress uses a committee system to wade through and made recommendations on bills. Each Senator and Congressman belongs to several committees and develops expertise in that area. Committees have enormous power because if a committee chairman pigeonholes (refuses to allow debate or a vote) a bill or the committee makes a negative recommendation then the bill dies in committee. There is no mention of this committee system in the constitution. It was developed because it is a more efficient way to run the legislative branch.

Political Parties - While today we rely on political parties to help us choose candidates for president and all other offices there is no mention of this in the constitution. Provides a "play-off" system for picking candidates. Also great at getting message out.

Amending the Constitution

Constitution has the ability to be amended or changed in order to adapt it to changing times and conditions.

-Ratified by 3/4ths of the State Legislatures

Amendment Approval(most common way)

-By 2/3 vote in both houses of Congress

Amendment ICongress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

Amendment IIA well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.

Amendment IIINo Soldier shall, in time of peace be quartered in any house, without the consent of the Owner, nor in time of war, but in a manner to be prescribed by law.

Amendment IVThe right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.

Amendment VNo person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time of War or public danger; nor shall any person be subject for the same offence to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.

Amendment VIIn all criminal prosecutions, the accused shall enjoy the right to a speedy and public trial, by an impartial jury of the State and district wherein the crime shall have been committed, which district shall have been previously ascertained by law, and to be informed of the nature and cause of the accusation; to be confronted with the witnesses against him; to have compulsory process for obtaining witnesses in his favor, and to have the Assistance of Counsel for his defence.

"due process of law"

Amendment VIIIn Suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved, and no fact tried by a jury, shall be otherwise re-examined in any Court of the United States, than according to the rules of the common law.

Amendment VIIIExcessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted.

Amendment IXThe enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people.

Amendment XThe powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

What is a Political Party?

A group of people with common interests and beliefs who work together to control the Government

What do Parties do?- They are a vital Link between the People and the government

-They are the way the will of the people is made know to the government

-way in which government is held accountable

-"Power Brokers" who encourage compromise between competing interest groups and soften the impact of extremists on both ends of the political spectrum

What do Parties do?Nominate Candidates and conduct political campaigns.

They conduct primary elections to determine who will represent the party in the general election.

What do Parties do?

Informing and Activating Supporters

What do Parties do?

The Bonding Agent -The party works to ensure to the country that the people who they are putting up for election are of high moral character and are qualified to do the job.

What do Parties do?Governing -Government in the United States is Government by party. -They conduct their business on the basis of Partisanship (things are done in the interest of their party, or along party ideals.)-Most appointments are made based on political party

What do Parties do?The Watch Dog Function

The right to vote is not mentioned in the Constitution so therefore it is left for the States

to decide

This is a Reserved power and is part of "States Rights"

The right to vote is "Suffrage" or the "Elective Franchise"

The Right to Vote

Voter Registration Each State Requires voters to registerThey make people establish qualifications to vote in the upcoming election.Examples include age, and citizenship.Qualifications vary form state to state. Some are harder than others

Originally only rich White men could vote

If a man owned a Jackass- he could vote.If the Jack ass died, he could not.

Today over 230 million can vote

The 5 Stages of Suffrage

-By 1810 all religious requirements were eliminated-one by one states got rid of property requirements and tax payment qualifications-by mid century, almost all white men could vote!

Stage 1 1789-1850

Stage 2 The 15th Amendment

Jim Crow Laws

Reconstruction

Stage 3 19th Amendment

Stage 4 Civil Rights Era 1960s

Voting Rights Act of 1965

The 23 rd Amendment

The 24th Amendment

Stage 5 The 26th Amendment

Types of Economic systems

Traditional

Command (communist)

Types of Economic systems

Mixed

Market (capitalist)

Laissez-faire

Who decides how much money we have as a nation?

The Federal Reserve Bank

The Federal Reserve Bank

It is our nations Central bank or a "bankers bank"

It has been called a lender of last resort (to bail out member banks in trouble)

It supervises and regulates banking institutions

It controls the money supply by manipulating interest rates thus controlling the rate of inflation and deflation

Its goal was to create a favorable business climate and through planning prevent Depression or Hyper inflation.

Board of Governors

(7 members)Washington

D.C.

12 district banksand 25 branches

39,000 members banks who use the Fed as a "bankers bank"

The Structure of the Fed

The Structure of the Fed

Janet Yellen Chairperson of the Board of Governors

Federal Reserve Bank

The most powerful women in the Universe

she controls the $ supply

How does the Fed control the Money supply?

1. Reserve Ratio

2. Discount Rate

3. The Federal Open Market Committee (FOMC)

Reserve Ratio

A bank cannot lend out all of the money it has. It must keep some in reserve. This is known as the reserve ratio.

The ratio is usually about 20% so if a bank had $1 million, it could lend $800,000.

If the Fed wanted to stimulate the economy, it would lower the Reserve ratio to say 10%Now that same bank could lend $900,000 putting more money into circulation.

If the Fed was worried about inflation, it would raise the reserve ration to say 30%. Now banks could only lend 700,000. This would cut the money supply and prevent or limit inflation

Discount rate

Member banks borrow money from the Fed. The member banks then turn around and lend that money to you!

The interest rate the Fed charges its members is called the discount rate.

If the discount rate is say 4% a member bank, wanting to make a profit would give you a loan for 8%.

If the economy was in a slump, the Fed could lower the discount rate to say 2%. Member banks would now lower the % they charged you to say 4%. Now that loans are cheap, more people will borrow and this will stimulate business.

If the economy was over heating and we were having inflation. The Fed would raise the discount rate to say 6%. Banks would now charge you say 12% for a loan. This would discourage many from borrowing, thus slowing things down and lessening inflation

The FOMC has 12 members. Seven of the members come from the Federal Reserve Bank Board. The president of the New York Reserve Bank has a permanent seat on the committee. The remaining four seats are filled on a rotating basis with presidents of the various reserve banks.

The committee can buy government securities (bonds) from banks thus putting more money into those banks who now have more money to lend. This will increase money supply and stimulate the economy

When the committee sells securities (bonds) it takes money out of banks. This decrease the amount they have to lend and the money supply. This will cool off inflation.

The Federal Open Market Committee (FOMC)

Scarcity

Opportunity Cost

GDP

Economist

Micro Economics

Macro Economics

What generally happens during an economic depression and how does the Government deal with it?

A federal Budget deficit is usually caused by?

Sole Proprietor

+ -

Partnership+ -

What is a corporation?A legal entity that is separate and distinct from its owners. Corporations enjoy most of the rights and responsibilities that an individual possesses; that is, a corporation has the right to enter into contracts, loan and borrow money, sue and be sued, hire employees, own assets and pay taxes.

The most important aspect of a corporation is limited liability. That is, shareholders have the right to participate in the profits, through dividends and/or the appreciation of stock, but are not held personally liable for the company's debts.

A corporation is created (incorporated) by a group of shareholders who have ownership of the corporation, represented by their holding of common stock. Shareholders elect a board of directors (generally receiving one vote per share) who appoint and oversee management of the corporation. Although a corporation does not necessarily have to be for profit, the vast majority of corporations are setup with the goal of providing a return for its shareholders. When you purchase stock you are becoming part owner in a corporation

Shareholders(anyone who ownes stock)

Elect

Board of Directors(over see interest of company)Hire

Ceo and Officers(run the day to day operations)

Hire Workers(actually do the work, create profit for shareholders-hopefully!)

Positive impact of Corporations on society

Negative impact of Corporations on society

The characteristics of money are: -durability-divisibility- transportable -stable-store of value-Scarce

Money is a medium of exchange that enables us to get what we want without barter.

At times in our countries history it was backed by Gold and/or Silver.

This was done to keep a limit on the amount of money that was in circulation and control

Inflation and Deflation

Money supply

Inflation

Money supply

Value or purchasing power

Value or purchasing power

Deflation

Our money today

It is a fiat currency. This means that there is NOTHING backing it up. It has value because the Federal

Government said it has value.

Also, all money is lent into existence. So all money is debt!

President Roosevelt asked congress to create The Federal Deposit insurance corporation. FDIC

This company would insure peoples money (today up to 250,000) so that even if the bank went bankrupt, their money would be safe.

People were now confident to put their money back into banks. It helped to sure up the banking system.

Supply and Demand Relationship

If price is too high, no one will buy!

If price is too low, not worth making it

The law of demand states that, if all other factors remain equal, the higher the price of a good, the less people will demand that good.

The Law of Demand

The amount of a good that buyers purchase at a higher price is less because as the price of a good goes up, so does the opportunity cost of buying that good.

$10

1$

1 pizza 10 pizza

The Law of Supply

Like the law of demand, the law of supply demonstrates the quantities that will be sold at a certain price. But unlike the law of demand, the supply relationship shows an upward slope. This means that the higher the price, the higher the quantity supplied. Producers supply more at a higher price because selling a higher quantity at a higher price increases revenue.

1 pizza

$1

$10

10 pizza

When supply and demand are equal the economy is said to be at equilibrium. At this point, the allocation of goods is at its most efficient because the amount of goods being supplied is exactly the same as the amount of goods being demanded. Thus, everyone (individuals, firms, or countries) is satisfied with the current economic condition. At the given price, suppliers are selling all the goods that they have produced and consumers are getting all the goods that they are demanding.

Equilibrium