ECONOMICSECONOMICSWhat Does It Mean To Me?

THE CONSTITUTIONAn Economic Document

Why did the Constitution need to

be written?

In 1778, representatives from the 13 colonies met to write the

ARTICLES OF ARTICLES OF CONFEDERATIONCONFEDERATION.

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.

In brief, McCulloch v MarylandMcCulloch 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.

The Supreme Court invoked the doctrine of IMPLIED IMPLIED POWERSPOWERS in the Constitution, which allowed Congress to pass legislation in addition to the list of ENUMERATED ENUMERATED

POWERS 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.

Traditional definition of Republicanism is the Representative the Representative

does what is BEST for does what is BEST for the citizen even if the the citizen even if the citizen doesn’t know itcitizen doesn’t know it

VS.

Democracy (voting)

To prevent a “rule by the elite,” writers of the Constitution formed the concept of:

CHECKS & BALANCESCHECKS & BALANCES

Executive branch Enforces laws

(President)

Judicial branch Interpret laws (Supreme Court)

Legislative branch Makes laws (Congress)

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Veto

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Judicial Review

Judicial Review

Pow

er 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.Slaves were considered property.

But the south wanted slave population counted in the census.

WHY?

For reapportionment and representation reasonsFor 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