economics in the constitution. government's view of the economy could be summed up in a few...

Economics in

The Constituti

on

Government's view of the economy could be summed up in a few short phrases:

If it moves - tax it.

If it keeps moving - regulate it.

And if it stops moving - subsidize it.

Ronald Reagan

“The first lesson of economics is scarcity: There is never enough of anything to satisfy all those who want it.

Thomas Sowell

The first lesson of politics is to disregard the first lesson of economics.”

What We Will Cover:

1) Definitions of Economic Terms

2) Principles of Economic Freedom

3) Government’s Role in the Economy

4) The Actual Words of the Constitution in Regards to the Economy

5) Modern Day Intrusion by Government in the Economy

6) What Can Be Done

What is an Economy?

Definition of Economy:

The management of the scarce resources of an organized system or group of people in order to maximize benefits

What is an Economy?



Management – Private vs. Public

What is an Economy?



Scarce Resources – Labor, Land, Minerals, Capital, Energy Sources, etc.

What is an Economy?



Organized System – Political, Financial, Social, Commercial, Religious, etc.

What is an Economy?



Group of People – Family, Community, City, County, State, Federal

What is an Economy?



Maximize Benefits – to create wealth, prosperity, independence, etc.

What is Wealth?

Wealth = Productivity

Wealth = Stack of paper currency

What is Wealth?Wealth = Productivity

- A nation and its people become wealthy as they fashion the raw materials of the earth into goods and services- Such a nation, and its people, are always strong and independent- Any nation, or its people, that relies on others to produce its goods or services will, as a result, become weak and dependent- A wealthy nation will always have a vibrant middle class, made up mainly of producers

What is Capital?Capital = the means of production, the means to produce wealth

- If capital is the means to produce and to create wealth, then all systems are based on “Capital-ism”- The difference between economic systems such as capitalism, socialism, and communism lies in ownership of the capital.- Decisions about what to produce, how much, and at what price are different in each economic system.

Capitalism – private individualsSocialism/Communism – the state/government

Thomas Jefferson

“In political economy, I think Smith’s Wealth of Nations the best book . . .”

Principles of Economic FreedomPrinciple #1 Free Market Forces Control the Economy – the Government Should Not

-Specialization of production-Supply and demand-Price tells the market what to produce and how much-Competition keeps prices low and quality high-Profits and losses motivate economic decisions


Adam Smith

George Washington

“Let vigorous methods be adopted; not to limit the prices of articles, for this I believe is inconsistent with the very nature of things, and impracticable in itself, but to . . . promote . . . private economy; encourage manufacturers, etc.”


Principles of Economic FreedomPrinciple #2 The Right to Own and Control Property

“The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence. Property must be secured or liberty cannot exist.”

John Adams

John Locke

“The “labour” of his body and the “work” of his hands, we may say, are properly his. Whatsoever, then, he removes out of the state that Nature hath provided and left it in, he hath mixed his labour with it, and joined to it something that is his own, and thereby makes it his property.”

Principles of Economic FreedomPrinciple #2 The Right to Own and Control Property

Samuel Adams

“The utopian schemes of leveling [redistribution of wealth], and a community of goods [government ownership of the means of production], are as visionary and impracticable as those which vest all property in the Crown. [These ideas] are arbitrary, despotic, and, in our government, unconstitutional.”

Principles of Economic FreedomPrinciple #3 The Right to Keep the Fruit of One’s Labors

“No man would become a member of a community in which he could not enjoy the fruits of his honest labor and industry. The preservation of property, then, is a primary object of the social compact . . . It [divesting a citizen of his property] is inconsistent with the principles of reason, justice, and moral rectitude; . . . and lastly, it is contrary to the letter and the spirit of the Constitution.

Vanhorne's Lessee v. Dorrance, 1795

To compel a man to furnish funds for the propagation of ideas he disbelieves and abhors is sinful and tyrannical.

Principles of Economic FreedomPrinciple #3 The Right to Keep the Fruit of One’s Labors

Thomas Jefferson

Benjamin Franklin

Principles of Economic FreedomPrinciple #4 Personal Responsibility – Don’t Allow Others to Do for Someone What He Can Do for Himself

I am for doing good to the poor, but I differ in opinion of the means. I think the best way of doing good to the poor, is not making them easy in poverty, but leading or driving them out of it . . . I observed in different countries, that the more public provisions were made for the poor, the less they provided for themselves, and of course became poorer. And, on the contrary, the less was done for them, the more they did for themselves, and became richer.

"I cannot undertake to lay my finger on that article of the Constitution which granted a right to Congress of expending, on objects of benevolence, the money of their constituents."

James Madison

“I cannot find any authority in the Constitution for public charity. [It] would be contrary to the letter and the spirit of the Constitution and subversive to the whole theory upon which the Union of these States is founded.”

President Franklin Pierce, 1854

The friendliness and charity of our countrymen can always be relied upon to relieve their fellow-citizens in misfortune . . .

while it prevents the indulgence among our people of the kindly sentiment and conduct which strengthens the bonds of a common brotherhood.”

Grover Cleveland, 1887

Federal aid in such cases encourages the expectation of paternal care on the part of the Government and weakens the sturdiness of our national character,

Frederic Bastiat

“Life . . . liberty, property – this is man. And in spite of the cunning of artful political leaders, these three gifts from God precede all human legislation, and are superior to it.”

Principles of Economic FreedomPrinciple #5 Government Involvement in the Economy Should be Non-Intrusive, Impartial, Predictable, and in Accordance with Natural Law

Frederic Bastiat

But how is this legal plunder to be identified? Quite simply. See if [government] takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if [government] benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime.

Principles of Economic FreedomPrinciple #5 Government Involvement in the Economy Should be Non-Intrusive, Impartial, Predictable, and in Accordance with Natural Law

Principles of Economic Freedom

Principle #6 Don’t Spend More Than You Earn

"Spend less than you earn - happy. Spend more than you earn - unhappy."

Benjamin Franklin

Principles of Economic Freedom

"It is incumbent on every generation to pay its own debts as it goes. A principle which if acted on would save one-half the wars of the world."Thomas Jefferson

Principle #6 Don’t Spend More Than You Earn

Is There a Proper Role for Government in the Economy?

[P]ersons and property are the two great subjects on which Governments are to act; . . .the rights of persons and the rights of property are the objects for the protection of which Government was instituted. James Madison

“That to secure these rights, Governments are instituted among Men”

Declaration of Independence

The Constitution Requires Government to Enact and Enforce Laws that:

Protect free market forces as the means for controlling our economy

Protect the right of man to own and control property

Protect the right of man to keep the fruit of his labors

Protect the natural law of personal responsibility

Protect man from intrusive, partial, unpredictable governmental involvement

Protect man from the enslavement of unpaid public debt

10 Planks of the Communist Manifesto

1. Abolition of private property; all land for public purposes.

2. A heavy progressive or graduated income tax.

3. Abolition of all rights of inheritance.

4. Confiscation of the property of all emigrants and rebels.

5. Centralization of credit in the hands of the State, by means of a national bank with State capital and an exclusive monopoly.

6. Centralization of the means of communication and transport.

7. Factories & instruments of production owned by the State.

8. State controlled industrial & agricultural armies.

9. Combination of agriculture with manufacturing industries.

10. Free education for all children in public schools.

“The Constitution is not an instrument for the government to restrain the people, it is an instrument for the people to restrain the government - lest it come to dominate our lives and interests.”

Patrick Henry

Federal Land Powers ClauseArticle I, Section 8, Clause 17

“Congress shall have power to exercise . . . Authority over all places purchased by the consent of the Legislature of the State . . . For the erection of forts, magazines, arsenals, dockyards, and other needful buildings

Federal Land Powers ClauseArticle I, Section 8, Clause 17

“Congress shall have power to exercise . . . Authority over all places purchased by the consent of the Legislature of the State . . . For the erection of forts, magazines, arsenals, dockyards, and other needful buildings

1) Free Market2) Own & Control Property3) Keep Fruit of Labor4) Personal Responsibility5) Limited Government6) Can’t Spend More than You Earn

The Due Process ClauseAmendments V and XIV

"No person shall be . . . deprived of life, liberty, or property, without due process of law”


Eminent Domain ClauseAmendment V

“Nor shall private property be taken for public use, without just compensation."


Equal Protection ClauseAmendment XIV

“Nor shall any state deny to any person within its jurisdiction the equal protection of the laws.”


Equal Protection ClauseAmendment XIV

“Nor shall any state deny to any person within its jurisdiction the equal protection of the laws.”

Equal rights – not equal things

Contracts ClauseArticle 1, Section 10, Clause 1

“No state shall pass any . . . ex post facto Law, or Law impairing the Obligation of Contracts”

Bankruptcy ClauseArticle 1, Section 8, Clause 4

“To establish uniform laws on the subject of Bankruptcies throughout the United States.”


Bankruptcy Clause

“The power of establishing uniform laws of bankruptcy . . . will prevent so many frauds where the parties or their property may lie or be removed into different States”

James Madison, Federalist #42

Bankruptcy

“Bankruptcy should no longer be thought of as a last resort. In fact, the sooner bankruptcy is considered a viable option, the sooner the debtor can regain his or her dignity and become a more productive member of society, helping the economy recover. There is no question that bankruptcy should be considered patriotic.”

Interstate Commerce ClauseArticle 1, Section 8, Clause 3

“The Congress shall have Power to … regulate Commerce with foreign Nations, and among the several States . . .”


Regulation of Commerce ClauseArticle 1, Section 9, Clauses 5-6

“No tax or duty shall be laid on Articles exported from any State.

nor shall Vessels bound to, or from, one State, be obliged to enter, clear, or pay Duties in another.”

No preference shall be given by any Regulation of Commerce or Revenue to the Ports of one State over those of another:

Taxing ClauseArticle I, Section 8, Clause 1

“The Congress shall have power to lay and collect Taxes, Duties, Imposts and Excises to pay the debts and provide for the common Defence and general Welfare of the United States . . .



but all Duties, Imposts and Excises shall be uniform throughout the United States”

“The Congress shall have power to lay and collect Taxes, Duties, Imposts and Excises to pay the debts and provide for the common Defence and general Welfare of the United States


“ . . . Direct Taxes shall be apportioned among the several States which may be included in this Union, according to their respective Numbers. . .”


“No Capitation, or other direct, Tax shall be laid, unless in Proportion to the Census . . .”


“You cannot legislate the poor into freedom by legislating the wealthy out of freedom. What one person receives without working for, another person must work for without receiving. The government cannot give to anybody anything that the government does not first take from somebody else. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that my dear friend, is about the end of any nation. You cannot multiply wealth by dividing it.”

Dr. Adrian Rogers

Income Tax AmendmentAmendment XVI

“The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states, and without regard to any census or enumeration."

Modern Day Intrusion by Governmentin the Economy

Freddie Mac/Fannie Mae Housing Bubble Burst



Freddie Mac/Fannie Mae Housing Bubble Burst

Short term benefit = It is the American dream that everyone should be able to own a home

Long term consequence = Americans who can’t afford homes default on mortgages


Federal & State Public Lands



- Federal government owns 34% of our nation’s total land area.

- Federal government owns 48% of the land in Wyoming (or over 30 million acres)

- Wyoming State government owns an additional 6% of land in Wyoming (or 3.8 million acres)

- Plank #1 of the Communist Manifesto - abolition of private property; all land for public purposes.

Federal & State Public Lands


OSHA, EPA, Department of Labor, IRS, Department of Commerce, etc.



OSHA, EPA, Department of Labor, IRS, Department of Commerce, etc.

What is the purpose of these governmental agencies – to protect or to control?They may state that they exist in order to protect, but their policies suggest that they exist to control and to take from the fruit of one’s labors that which they have not produced themselves.


Food Stamps, Medicare, Medicaid, Farm Subsidies, Social Security, Welfare, Subsidized

Loans, Subsidized Housing, etc.



Troubled Asset Relief Program (TARP)



Troubled Asset Relief Program (TARP)

- Government’s role is not to pick winners and losers

- Freedom to fail is just as important as freedom to succeed

- Was the TARP money used to rebuild and restructure for stability?

- What precedent has now been set?


Debt Ceiling Increases


How do we restore the

Constitution?

3 Step Formula

1 – Educate Yourself

2 – Inform Others

3 – Become Active in the Solutions

The John Birch Society has been doing these things for over 53 years!

1 - Educate yourself

Join Our Team of 300

- Books, DVDs, Booklets-Reprint articles from our bi-monthly magazine, The New American-www.thenewamerican.com-www.jbs.org

http://www.thenewamerican.com/

http://www.jbs.org/


2 - Inform others

- Pass information along to neighbors, friends, and family

- You don’t have to know everything – just give them the material and it will do the teaching (ask them for their opinion)

- Great tool is the Freedom Index



2 - Inform others

3 - Become active in the solutions


- Meet up once a month with patriots in your community

- Receive email alerts, monthly bulletin, action projects that will tell you what you can do in a state-wide and nation-wide coordinated effort

“Do you want to know who you are?

Don’t ask. Act!

Action will delineate and define you.”

Thomas Jefferson

Are willing to pledge their lives,



Their fortunes,



Their fortunes,

and their sacred honor!



Their fortunes,

and their sacred honor!

willing to be known as …


True Patriots!

“Duties are ours - Results are God’s”

John Quincy Adams

economics in the constitution. government's view of the economy could be summed up in a few...

Documents

definition of economy

political economy

constitution slide

stategovernment slide

federal slide

public slide

organized system

ronald reagan slide