Economics of the Constitution .pptVIP

Economics of the Constitution Lesson 8 Problems under the Articles of Confederation Lesson 9 The U.S. Constitution: Rules of the Game A New Nation in Economic Crisis No protection of the Navigation Acts No British navy Huge debts No power to tax Tariff fights between the states Economics of the Constitution Lesson 8 Problems under the Articles of Confederation Visual 8.1 The Problems Following Independence The Problems Following Independence “There is scarcely anything that can wound the pride or degrade the character of an independent nation which we do not experience . . . we owe debts to foreigners and to our own citizens. . .these remain without any proper or satisfactory provision for their discharge . . . .We have neither troops, nor treasury, nor government. . . . Are we entitled by nature and compact to a free participation in the navigation of the Mississippi? Spain excludes us from it. Is public credit an indispensable resource. . .? We seem to have abandoned its cause. . . . Is commerce of importance to national wealth? Ours is at the lowest point. . . . Is respectability in the eyes of foreign powers a safeguard against foreign encroachments? The imbecility of our government [under the Articles of Confederation] even forbids them to treat with us.” “The Federalist, No. 15” December 1, 1787 Visual 8.2 Be Careful What You Wish For Activity 8.1A New Beginning in 1781: One nation of Thirteen? 1. Debt You are a member of the Congress of Confederation in 1781, considering the issue of war debts. Predict the consequences likely to follow if war debts are not repaid. Explain your prediction briefly, making use of the economic principle that people respond to incentives in predictable ways. Activity 8.1A New Beginning in 1781: One nation of Thirteen? 2. The Power to Tax You are a member of the Congress of Confederation in 1781, considering whether the federal government should be granted new powers to tax. Predict the consequences likely to follow if