GOVERNMENT STUDY GUIDE: TEST 2

Economics- the study of human efforts to satisfy seemingly unlimited wants through the use of limited resources 3 Major Decisions of Economic System- (1) what and how much should be produced; (2) how goods and services should be produced; (3) who gets the goods and services that are produced Capitalism- an economic system in which freedom of choice and individual incentive for workers, investors, consumers, and business enterprises is emphasized. The government assumes that society will be best served by any productive economic activity that free individuals choosealso called FREE ENTERPRISE 5 Characteristics of Capitalism- (1) private ownership and control of property and economic resources; (2) free enterprise; (3) competition among businesses; (4) freedom of choice; and (5) the possibility of profits Free Market- means a situation in which the government placed no limits on the freedom of buyers and sellers to make economic decisions Adam Smith- a Scottish philosopher and economist, who in 1776 provided a philosophy for free market economy. He wrote The Wealth of Nations, in which he brought out the basic ideas of laissez-faire economics Laissez faire- a French term, means to let alone. According to this philosophy, government should keeps its hands off the economyin this, the governments role is strictly limited to those few actions needed to ensure free competition in the marketplace Mixed Market Economy- an economy in which free enterprise is combined with and supported by government decisions in the marketplace. Government keeps competition free and fair and protects the public interestAMERICA is example Socialism- under this, the government owns the basic means of production, determines the use of resources, distributes the products and wages, and provides social services such as education, health care, and welfare3 GOALS: (1) the distribution of wealth and economic opportunity equally among people; (2) societys control, through its government, of all major decisions about production; and (3) public ownership of most land, of factories, and of other means of production Karl Marx- (1818-1883), a German thinker and writer, was a socialist who advocated violent revolution Bourgeoisie- who Marx believed these were the capitalists in an industrialized nation, who own the means of productions Proletariat- who Marx believed were the workers in an industrialized nation, who work to produce the goods Communism- under this, one class would evolve, property would all be held in common, and there would be no need for government Command Economy- in Communist nations, government planners decide how much to produce, what to produce, and how to distribute the goods and services produced, called this because decisions are made at the upper levels of government and handed down to managers Magna Carat- also called the Great CharterKing John was forced to sign in 1215, which provided the basis for the principle of limited government. English Political Heritage- The English brought over two principles of government they greatly influenced the development of the United States- limited government an representative governmentsome of these were embodied by the Iroquois League, a union of five Native American groups Limited Government- government in which the power of the monarch, or government, was limited, not absolute. Unlimited Government- government in which the power of the monarch, or government, was absolute, not limited Petition of Right- Charles I was forced to sign this in 1628 by the representatives of Parliament, which severely limited the kings power. He could not collect taxes without Parliaments consent, imprison people without just cause, house troops in private homes without permission of the owner, or declare martial law unless the country was at war English Bill of Rights- passed by Parliament in 1688, it was a document that set clear limits on what a ruler could and could not do5 KEY IDEA: (1) Monarchs do not have absolute authority. They rule with the consent of the peoples representatives in Parliament; (2) The monarch must have Parliaments consent to suspend laws, levy taxes, or maintain and army; (3) The monarch cannot interfere with parliamentary elections and debates; (4) the people have a right to petition the government and to have a fair and speedy trial by a jury of their peers; (5) The people should not be subject to cruel and unusual punishment or to excessive fines and bails Representative Government- a government in which people elect delegates to make laws and conduct governmentcolonist had this firm belief Mayflower Compact- pilgrims signed in 1620, stands as the first example of many colonial plans for selfgovernmentalso agreed to choose their own leaders and to make their own laws, which they would design for their own benefit General Fundamentals- 1636, first basic system of laws in the English colonies Fundamental Orders of Connecticut- 1639, Puritans who had left the Massachusetts Bay Colony to colonize Connecticut drew up Americas first formal constitution, or charter, called this Separation of Powers- principle in which colonial charters divided the power of the government. The governor, the kings agent in the colonies, had executive power, colonial legislatures had the power to pass laws, and colonial courts heard cases

Constitution government- the government is limited in power Government with a Constitution- no real limits unless decreed House of Burgesses- The Virginia House of Burgesses was the first legislature in America, established in 1619, only 12 years after the settlement of Jamestown. Two Treaties on Government- John Locke spelled out his political ideas that people should contract among themselves to form governments to protect their natural rightspublished in 1690. Locke reasoned that in a state of nature (before governments were formed), all people were born free, equal, and independent Natural Law- Locke believed that the laws of nature provided rights to life, liberty, and property The social contract- Locke argued that if a government failed to protect these natural rights, the people could change that government Thomas Hobbes and His Ideas- The condition of manis a condition of was of everyone against everyonenatural law is nasty, brutish, and short John Locke and His Ideas- The end of law is not to abolish or restrain, but to preserve and enlarge freedomsaid the people were given basic rights and, if the government violated these rights, the people could change the government Voltaire and Rousseau- French men who agreed with Locke, but they said that men did not have to give government obedience 3 Key Practices of American government- limited government, representative government, and separation of powers Montesquieu- created the idea of separation of powers Colony- a group of people who leave their native country to form in a new land a settlement subject to, or connected with, the parent nation Stamp Act- 1765, imposed the first direct tax on the colonists in which it required colonists to pay a tax on legal documents, pamphlets, newspapers, and even dice and playing cards Intolerable Acts- Coercive Acts, one act was closing the Boston Harbor, another was Britain withdrew the right of Massachusetts colony to govern itselfin response to the Boston Tea Party Revenue- the money a government collects from taxes or other sources Albany Plan of Union-1754, Benjamin Franklin proposed this innovative plan for uniting the colonies, but it was rejected because it gave too much power to an assembly made up of representatives from all thirteen colonies Committees of Correspondence- by 1773, organizations called this were urging resistance to the Britishthese committees consisted of colonists who wanted to keep in touch with on another as events unfolded Embargo- an agreement prohibiting trade Continental Congress- The First Continental Congress was held in Philadelphia in 1774 which debated what the colonists should do about their relationships with Britain (declared an embargo against British trade)Second Continental Congress met in 1775, in which fighting had begun and Congress acted as a central government to carry on the revolution Thomas Paine and Common Sense- independence movement, argued that monarchy was a corrupt form of government and that George III was an enemy to liberty Declaration of Independence- July 4th, 1776, was the official separation from Britain Key Parts/Ideas of the Declaration- basic human rights, complaints against the kings violation of rights, colonists determination to leave Great Britain Written constitutions- no oral traditions unless clearly understood Treaty of ParisRatification- approval on votes Unicameral- single-chamber Congressheld under the Articles Articles of Confederation- a committee appointed by Congress presented this plan in1777, which basically continued the structure and operation of government as established under the Second Continental Congressthe states wanted a confederation, or league of friendship, among the 13 independent states rather than a strong national government Government under the Articles- The nations first government included a single-chamber Congress with limited powers, each state had one vote, but it had no executive branch or court system, and the lack of executive was due to fear of a new kingthe loose confederation was modeled on the Iroquois League Weaknesses of Articles- The congress had no power to collect taxes and had to depend on states for money, it had no power to regulate trade, and it had no power to enforce laws. Laws needed the approval of 9 of 13 states, only 1 vote per state, despite size. Amendments required consent of all 13 states, which was very difficult. No courts to settle disputes, no executive lead. Lack of trade management led to massive foreign debt, little tax revenue, and an economic depression in 1786. Economic crisis leads to Shays Rebellion Powers of the 13 Sovereign state Governments- had the power: (1) to enforce or impede national government policy; (2) to control state militia; (3) to withhold or grant revenues to the national government; (4) to veto amendments to the Articles of Confederation; (5) to regulate foreign and interstate commerce

Northwest Ordinance/Treaty- 1787, established the principle that the territories were to be developed for statehood on an equal basis with the older states Shays Rebellion and Reaction- an armed group of farmers who forced several courts to close in order to prevent farm foreclosures and the loss of their farms. Daniel Shays led a band that closed the Massachusetts Supreme Court, who later advanced on the federal arsenal in Springfieldit was put down by the Massachusetts militiaScared the American leaders, causing the Annapolis Convention to begin discussing fixes for the problems of the Articles, and later, a convention was called in Philadelphia of May 1787 Constitutional Convention- begins from the Annapolis convention, which could not settle commerce issues and they needed to focus on the need for a strong central governmentheld in May 1787 in Philadelphiaall states were there except Rhode Island; George Washington, Ben Franklin, and Gouveneur Morris were the leaders of thisJames Madison, the father of the constitution, had most of his ideas used hereone vote was given to each state Key Concepts Agreed Upon- limited and representative government; powers of government should be divided between three branches; control power of states mints, keep out of as many disputes; a stronger national government Virginia Plan- called for a strong national bicameral legislature (lower chosen by the people, upper chosen by the lower, legislature able to stop any state law found unconstitutional)strong national executive to be chosen by the national legislaturenational judicial branch to be chosen by the legislaturefavored by the nationalists/federalistsfavored the large states New Jersey Plan- a unicameral legislature (congress could now impose taxes and regulate trade)weak executive branch with multiple people elected by Congressa weak national judicial branch approved by the executivejust changed the Articles of Confederation a littlefavored by states rights advocatesfavored small states, kept all states equal Connecticut Compromise- House of Representatives: states represented by population, tax/revenue laws all start in House, favors large statesSenate: two members from each state, elected by state legislatures, protects smaller states with equal representation Bicameral- two-chamber Congress James Madison and His Role with the Constitutional Convention- James Madison is often called the FATHER OF THE CONSTITUTION because he was the author of the basic plan of government that the convention eventually adopted 3/5 Compromise- was used to count African Americans held as slaves, which was resolved to count each slave as 3/5 of a person for representation purposessouthern states get more representation and do not pay full value in tax Interstate Commerce and Slave Trade Compromise- basically, the delegates determined that Congress could not ban the slave trade until 1808. At the same time, they gave Congress the power to regulate both interstate commerce (trade among the states), and foreign commerceto protect the Souths exports, however, Congress was forbidden to impose export taxes Federalists- favored the constitution and was led by many of the Founders. Support mainly came from merchants and others in the cities and coastal regions Anti Federalists- opposed the new Constitution. They drew support largely from the inland farmers and laborers, who feared a strong national government The Federalist with James Madison- in New York, Hamilton, Madison, and John Jay published more than 80 essays defending the new Constitution, which was later collected into a book called this Ratifying the Constitution- The federalists wanted a strong national/central government, for they feared anarchy without one, but the Anti-federalists demanded a Bill of Rights to protect their natural rights Anarchy- political disorder (Federalists thought that without a strong national government, this would ensue) Extralegal- not sanctioned by law (Anti Federalists thought the Constitution was this) Bill of Rights- Anti-Federalists wanted this to protect their rights in case their government was given too much power, they didnt want to have all of their rights taken away