Civics and GovernmentCivics and Government

PretestPretestPlease fill in the student number

given on the yellow post-it on the test.

Agenda:Agenda:• 4:30 – 5:00 Introductions and Pretest5:00 – 5:30 How Do Constitutions Shape

Economic Systems? (Bill)5:30 – 6:00 Taxes Change Behavior (Brett)

 6:00 – 6:25 Dinner6:25 – 7:00 Immigration (Brett) 7:00 – 7:40 What are the Economic Functions

of Government? (Bill)7:40 – 8:10 Why Do People Not Vote? (Bill)8:10 – 8:30 Evaluation and Posttest

Focus: Civics and Focus: Civics and Government, 2Government, 2ndnd edition edition

OutlineOutline Lesson 1: How Do Constitutions Shape Economic

Systems? Lesson 2: ‘Free to Do What I Want?’: What is the

Relationship Between Economic Freedom and Political Freedom

Lesson 3: Voters and Elections Lesson 4: What are the Economic Functions of

Government? Lesson 5: Government Spending Lesson 6: Can Election Futures Markets be More

Accurate Than Polls?? Lesson 7: Taxes Change Behavior Lesson 8: Economic Misery and the Presidency Lesson 9: The Market Goes to Court: Key Economic

Cases and the United State Supreme Court Lesson 10: An Economic Analysis of Health Care Policy

OutlineOutline Lesson 11: How Should Governments Structure

the Tax System? Lesson 12: Federalism: NCLB, Incentives or

Coercion? Lesson 13: Government Failure: Using Public

Choice Theory to Analyze Political Decisions Lesson 14: Economic Sanctions and U.S. Foreign

Policy: Is the Glass Half-Full or Half-Empty? Lesson 15: The Judiciary and Eminent Domain:

The Case of Kelo vs. City of New London Lesson 16: Economic Freedom in China and India Lesson 17: Making Trade-Offs in Policy

Decisions: The Patriot Act Lesson 18: Economic Indicators for Informed

Citizens Lesson 19: Immigration Lesson 20: Economic Freedom and Rights

How Do Constitutions Shape How Do Constitutions Shape Economic Systems? Economic Systems? FSSS: SS.7.C.3.1 Compare different forms of

government.

In the first part of this lesson, the students examine the characteristics of a market economy and the economic provisions of the U.S. Constitution.

In the second part of the lesson, the students consider a question: Why would North Korea and South Korea--two nations with much in common, experience very different economic outcomes?

To answer this question, the students read excerpts from the Constitutions of North Korea and South Korea and examine the differences between them.

Characteristics of a Market Characteristics of a Market EconomyEconomyPrivate PropertyFreedom of Enterprise and

ChoiceMotive of Self-Interest CompetitionSystem of Markets and PricesLimited Government

Economic Provisions of the Economic Provisions of the U.S. ConstitutionU.S. ConstitutionCommerce Clause Coinage Clauses Copyright ClausesContract ClausesExport ClausesSearches and SeizuresDue ProcessReserved Rights and Powers

Commerce ClauseCommerce ClauseArticle 1, Section 8 states that Congress shall

have the power “To regulate commerce with foreign nations, and among the several states, and with the Indian tribes; …”

States cannot regulate businesses that operate in more than one state.

The federal government establishes the rules for businesses that operate between different states.

Economic impact: If individual states were allowed establish their own regulations, trade between states would be reduced, and specialization, which is fostered by trade, would be discouraged.

Coinage ClausesCoinage ClausesArticle 1. Section 8 states that Congress shall

have the power “To coin money, regulate the value thereof,…” and “To provide for the punishment of counterfeiting the securities and current coin of the United States; …” Article 1, Section 10 gives Congress this power exclusively, stating that “No state shall…coin money; ...”

The Congress can coin money, not 50 individual states.

Economic impact: The coinage clauses reduce the costs of specialization and trade within the borders of the 50 states. They help to create a “free trade zone” within the United States, a goal only recently accomplished by the European Union, with its common currency, the euro.

Copyright ClauseCopyright ClauseArticle 1, Section 8 states that Congress shall

have the power “To promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writing and discoveries; …

Intellectual property is protected.Economic impact: This clause encourages

innovation by allowing authors and inventors to maintain control over their products and to benefit from the earnings their products generate for a period of time. Patents and copyrights apply not only to material goods but also to creative or intellectual works including poetry, film, music, and computer programs.

Contract ClausesContract ClausesArticle 1, Section 10 states that “No bill of

attainder or ex post facto law shall be passed…” by Congress. Article 1, Section 10 states that “No state shall…pass any bill of attainder, ex post facto law, or law impairing the obligations of contracts,…”

These provisions protect freedom of contract and authorize the enforcement of contracts.

Economic Impact: Voluntary exchange is central to a market economy. People must be able to enforce contracts, even if they do not know each other. Without freedom of contract and enforcement of contracts, there would be little stability in financial arrangements.

Export ClausesExport ClausesArticle 1., Section 9 states that “No tax or

duty shall be laid on articles exported from any state….” Article 1, Section 10 states that “No state shall without the consent of the Congress, lay any imposts or duties on imports or exports,…”

These clauses make it unconstitutional for states to impose taxes on imports or exports. Export taxes forbidden (why?).

Economic impact: Like the coinage clause, the export clauses have helped to create a “free trade zone” within the United States, a goal only recently accomplished by the European Union.

Searches and SeizuresSearches and SeizuresThe Fourth Amendment to the Constitution

states that “The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated,…”

The Fourteenth Amendment requires that the government must protect property owned by individual citizens. Only under special circumstances may the state conduct searches and remove private property.

Economic impact: Gives incentives to work for private property.

Due ProcessDue Process The Fifth Amendment to the Constitution states that

“No person shall…be deprived of life, liberty, or property, without due process of the law;… It also states that the government may not take private property for public use without paying “just compensation.” The Fourteenth Amendment, Section 1, applies the due process requirement to the states: “nor shall any State deprive any person of life, liberty, or property, without due process of law: …”

For most people, due process of law is associated with the rights of citizens when they are placed under arrest by the authorities.

Economic Impact: It is also a fundamental economic freedom protected by the U.S. Constitution. It means that the government may not arbitrarily take the property of individuals. Knowing this, property owners may use their property confidently, as they see fit, without fear that a disapproving government might confiscate it.

Reserved Rights and Reserved Rights and PowersPowersThe Ninth Amendment to the Constitution states

that “The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people.” The Tenth Amendment states that “The 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.”

The Founders assumed that fundamental rights and freedoms are inalienable rights held by individuals, not governments. Thus, any powers not specified as belonging to the state or national government are to remain with the people.

Economic impact: Amendments Nine and Ten are meant to underscore the limited role of government in the U.S. economy.

Other ConstitutionsOther Constitutions

South Korea and North South Korea and North KoreaKorea

The countries of North and South Korea are similar in many ways:

They share the same peninsula.They have easy access to the sea for

trade.They have many of the same natural

resources.They have a similar culture.They have a similar language.

Comparing Economic Comparing Economic Provisions in the Provisions in the Constitutions of North Korea Constitutions of North Korea and South Koreaand South Korea

If the background of these countries is so similar, what explains the differences in prosperity?

Constitution of North Constitution of North KoreaKoreaArticle 19 North Korea relies on the socialist production relations and on the foundation of

an independent national economy.

Article 20In the DPRK, the means of production are owned only by the State and social

cooperative organizations.

Article 21The property of the State belongs to the entire people.There is no limit to the property which the State can own.Only the State possesses all the natural resources, railways, airports,

transportation, communication organs and major factories, enterprises, ports and banks.

Article 22The property of social cooperatives belongs collectively to the working people

within the organizations concerned.Social cooperative organizations can possess land, agricultural machinery,

ships, . . . factories, and enterprises.The State shall protect the property of social cooperative organizations.

Constitution of North Constitution of North KoreaKoreaArticle 24Private property is confined to property meeting the simple and

individual aims of the citizens.Private property consists of socialist distributions of the result

of labor and additional benefits of the State and society.The products of individual sideline activities including those

from the kitchen gardens of cooperative farmers and income from other legal economic activities shall also belong to private property.

The State shall protect private property and guarantee its legal inheritance.

Article 25The State shall provide all working people with every condition

for obtaining food, clothing, and housing.

Article 36The State shall pursue a tariff policy with the aim of protecting

the independent national economy.

Constitution of South Constitution of South KoreaKorea Article 119: Regulation and Coordination (1) The economic order of South Korea is based on a

respect for the freedom and creative initiative of enterprises and individuals in economic affairs.

(2) The State may regulate and coordinate economic affairs in order to maintain the balanced growth and stability of the national economy, to ensure proper distribution of income, to prevent the domination of the market and the abuse of economic power, and to democratize the economy through harmony among the economic agents.

Article 120: Natural Resources Licenses to exploit, develop, or utilize minerals and all

other important underground resources, marine resources, water power, and natural powers available for economic use may be granted for a period of time under the conditions as prescribed by law.

The land and natural resources are protected by the State, and the State establishes a plan necessary for their balanced development and utilization.

Constitution of South Constitution of South KoreaKorea Article 122: Land Laws The State may impose, . . . under the conditions

prescribed by law, restrictions or obligations necessary for the efficient and balanced utilization, development, and preservation of the land of the nation that is the basis for the productive activities and daily lives of all citizens.

Article 125: Foreign Trade The State fosters foreign trade, and may regulate and

coordinate it.

Article 126: No Socialization Private enterprises may not be nationalized nor

transferred to ownership by a local government, nor shall their management be controlled or administered by the State, except in cases as prescribed by law to meet urgent necessities of national defense or the national economy.

Student Exercise…Student Exercise…

Compare provisions of the constitutions…

United States North Korea South Korea

Is private property protected?

Yes. Why? No. Articles 21, 22, and 24 state that nearly all property is owned by the state or by state-endorsed cooperatives. Private property is restricted mainly to personal possessions and wages.

Yes. Article 126 states clearly that private enterprises may not be nationalized. In other words, they are to be privately owned.

Is freedom of enterprise encouraged?

Yes. Why? No. Articles 21 and 25 call for a large role for the state in the production of goods and services, and almost no role for individuals.

Yes. Article 119 specifically calls for respect for the freedom and creative initiative of enterprises and individuals in economic affairs.

United States North Korea South Korea

Is the role of government limited?

Yes. No. The government controls nearly all aspects of economic life. Articles 19, 21, and 24 help to make this clear.

Yes. There is a strong role for economic activity not controlled by the state, as suggested in Article 119 and 126. However, Articles 119, 120, and 122 call for a large regulatory role for government.

Is free trade encouraged?

Yes. No. Article 36 suggests that protectionism is the dominant goal.

Yes. Article 125 suggests that international trade is encouraged.

ConclusionsConclusionsMarket Economy:

◦Private property◦Freedom of enterprise and choice◦Motive of self interest, ◦Competition◦System of markets and prices◦Limited government

Constitutions vary in their protections of these characteristics

What are the Economic What are the Economic Functions of Government?Functions of Government?• FSSS: SS.7.C.2.13 Examine multiple

perspectives on public and current issues.

• The teacher presents six economic functions in a brief lecture.

• In a guided practice activity, students classify newspaper headlines according to the six functions.

• A brief reading introduces “liberal” and “conservative” views of the scope of government economic activity.

• The lesson concludes with students working in groups to develop liberal and conservative arguments on one of the newspaper headline.

What are the Economic What are the Economic Functions of Government Functions of Government Maintain Legal and Social FrameworkMaintain CompetitionProvide Public Goods and Services

◦Share-able goods that anyone can useCorrect for Externalities

◦Costs or benefits imposed on third parties

Stabilize the EconomyRedistribute Income (through taxes

or programs)

HeadlinesHeadlinesFederal Reserve Raises Key Interest

RateCongress Raises Tax Rates for Top

Income BracketsEPA Plan to Reduce CO2 EmissionsHomeland Security Funding IncreasedPresident Says More Spending Will

Fight RecessionAgency Blocks Merger of Two Airlines

HeadlinesHeadlinesCity Police Increase Neighborhood

PatrolsLawsuit Establishes Patent RightsLegislature Passes Funding for

Subsidized HousingNew Info from Government Agency

Helps Consumers Choose WiselySongwriter Sues Singer; Says Song

StolenCounty Funds Free Flu Vaccinations

HeadlinesHeadlinesGovernment spends 700 billion to

bailout banksCity of New London acquires land

through eminent domain

ConclusionsConclusionsMost economist agree on this list as

economic functions, though the level of involvement is debated.

Liberal vs. conservative◦Conservative – less government

involvement because of (1) individual freedom or (2) ineffectiveness.

◦Liberal – more government involvement because of (1) role of government to correct market failure or (2) equity concerns.

Civic Duty and VotingCivic Duty and VotingWhy do people vote?

Why Do People Vote?Why Do People Vote?

When the election is predicted to be close and a person’s vote may change the election result:◦People may vote to support a

particular politician.

◦People may vote to remove incumbents (“Throw the rascals out”).

Why Do People Vote?Why Do People Vote?

When the election is not predicted to be close and a person’s vote is not likely to change the election result:◦People may believe it is their civic duty

to vote.◦People may vote to voice their opinions

regardless of the likely outcome. ◦People may vote in order to feel that

they are a part of winning team.

Economist’s ViewEconomist’s ViewCost vs. Benefits of Voting

Costs of VotingCosts of VotingCosts of VotingAmendment XXIV to U.S. ConstitutionSection 1. The right of citizens of the United

States to vote in any primary or other election for President or Vice President, for electors for President or Vice President, or for Senator or Representative in Congress, shall not be denied or abridged by the United States or any state by reason of failure to pay any poll tax or other tax.

Section 2. The Congress shall have power to enforce this article by appropriate legislation.

Costs of VotingCosts of VotingOpportunity cost is what a voter gives up to

be able to vote. While the constitution prohibits monetary charges, this does not mean voting is without costs. Some of these opportunity costs are:

Opportunity Costs of Opportunity Costs of VotingVotingTime taken to registerTime to find voting location or vote via

absentee balletTime taken to vote which may mean:Lost wages if you miss workBabysitting costs or gasoline costsTime needed to investigate candidates and

issues

Reasons for Not Voting: 2008Reasons for Not Voting: 2008Population / 18-24 year oldsPopulation / 18-24 year olds

% of Pop % of 1810. Transportation Problems 2.6 2.49. Forgot 2.6 4.58. Inconvenient Polling Place 2.7 2.67. Registration Problems 6.0 9.06. Don’t Know or refused to answer7.0

11.25. Out of Town 8.8 14.24. Didn’t Like the Candidates 12.9 8.03. Not Interested 13.4 12.12. Illness or Disability 14.9 3.21. Too Busy 17.5 21.0

Of all citizens, who voted Of all citizens, who voted most percentage-wise, in most percentage-wise, in 2008? 2008? Men Or Women61.5 65.7

Of all citizens, who voted Of all citizens, who voted most percentage-wise, in most percentage-wise, in 2008?2008?Employed Or

Unemployed65.9 54.7

Of all citizens, who voted Of all citizens, who voted most percentage-wise, in most percentage-wise, in 2008?2008?High School Degree Or Bachelor’s

Degree54.9 77.0

Of all citizens, who voted Of all citizens, who voted most percentage-wise, in most percentage-wise, in 2008?2008?Minnesotan Or Floridian Or

Hawaiian75.0 63.8 51.8

Of all citizens, who voted Of all citizens, who voted most percentage-wise, in most percentage-wise, in 2008?2008?Veteran Or

Nonveteran70.9 62.8

Of all citizens, who voted Of all citizens, who voted most percentage-wise, in most percentage-wise, in 2008?2008?Renter Or Homeowner51.6 67.8

Of all citizens, who voted Of all citizens, who voted most percentage-wise, in most percentage-wise, in 2008?2008?Young Or Old48.5 70.3

Overall Voting Over TimeOverall Voting Over Time

Year Total Percent of U.S. Citizen Population

1980 64.01984 64.91988 62.21992 67.71996 58.42000 59.52004 63.82008 63.6

Conclusions on VotingConclusions on VotingHow do you increase

participation?Lower costs or increase benefits?

◦Mandatory◦Advertising◦Payment ◦Mail voting◦Internet voting

Workshop SummaryWorkshop SummaryEconomics in the constitutionEconomics in immigrationEconomic role in governmentEconomic decision to vote

Posttest and RequestPosttest and RequestPosttestStudent test and/or assignment

Budget Issues?Budget Issues?

Revenue and Outlays as % of Revenue and Outlays as % of GDPGDP

Solutions?Solutions?