POLS 102 1nd Edition Lecture 4Outline of Last Lecture I. Policy Outcomesa. ExamplesII. Government a. DefinitionIII. Government Characteristicsa. Legitimacyi. Why the actions of government are seen as legitimate 1. Tradition2. Charisma/Capabilities of leaders3. Rational Reasonsb. Power through which force is exercisedi. Positive Power1. Transaction costs2. Conformity costsii. Negative Power1. Relationship between transaction and conformity costsIV. Why we have governmenta. Maintain Orderb. Provides Equalityc. Address Collective Action ProblemsOutline of Current Lecture II. Why we have government? (Continued from last class)a. Addressing collective action problemsi. Prisoners dilemmaii. Tragedy of the common goodsIII. How do we study politics?a. Rules determine payoffsb. Rules determine who has certain informationc. Rules determine what appropriate behavior is and what behavior is allowed under the lawd. Rules determine who gets to participateIV. Constitution Foundationsa. Why the Articles of Confederation?i. Feared DisorderThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.ii. Colonies were used to self-governmentiii. They had Calvinist work ethicsiv. Quality workersb. Articles of Confederationi. Characteristicsc. James Madisoni. Understood problems of free ridingii. Understood problems with Factionsiii. Financial Problems and inflationiv. Wanted a strong governmentV. The Conventiona. Consensus among founders for strong national governmentb. Virginia Planc. Virginia Plan Summaryd. Virginia Plan could not win ratification resulting in the Connecticut Compromisee. Conflict between small vs. large states and North vs. South statesCurrent Lecture**HIGHLIGHTED IN YELLOW IS CONTINUED FROM LAST LECTURE**Why do we have government?3. Addressing collective action problems- Prisoners Dilemma- Tragedy of the common goodso In the case of non-excludable, rival goods.o A good that anyone can use, but it can be used up if the government doesn’t set guidelines to limit the amount of the good that people can use. This results in a benefit for everyone.o Example: Fishermen like to fish in the Chesapeake Bay, however if there wasn’t a limit on how many fish that fishermen could catch per day or week then the Bay would eventually run out of fish.How do we study politics?1. By trying to understand how institutions (formal and informal rules) affect behavior of outcomes by:a. Rules determine payoffs – how individuals benefit from certain outcomes of policyb. Rules determine who has certain information – through the Freedom of Information Act (FOIA) citizens are allowed to ask for access to governmentalinformation and if the information is covered by FOIA, the government is supposed to give them access. i. However, not all information is covered by FOIA. Important information not covered by FOIA can be sealed to specific people of the government.c. Rules determine what appropriate behavior is and what behavior is allowed under the law.i. For example: Reciprocity used to be a big informal rule of congress (“you scratch my back, I’ll scratch yours”) but now reciprocity rarely exists in congress which is why there are so many gridlocks now.d. Rules determine who gets to participate i. For example: Only male white landowners used to be able to vote, this significantly impacted policy outcomes in favor of those who could vote.Constitution FoundationsWhy the Articles of Confederation?1. Feared Disorder (pg. 15-16 textbook)a. People recognized that there was a need for order and a representative democratic government.2. Colonies were used to self-governmenta. There was a sense of trust among colonists3. They had Calvinist work ethics4. There were quality among workersArticle of Confederation (pg. 50-52)1. Characteristicsa. A Confederation i. If states wanted to, they could give power to the national government. But the government couldn’t do anything and had no power unless the states said so.b. Unicameral (one body) Legislation – Congressi. Weak Government1. No power to lay or collect taxes2. No power to regulated interstate commerce or tradea. Therefore there were a lot of arguments between states 3. To pass laws they needed a super majority of 9 out of the 13 states to agree = high transaction costs (resources, time and effort)c. No national court to arbitrate disputesi. Virginia and Maryland both thought they owned the Chesapeake Bayii. Their individual state legislatures had to deal with this argument, although it never got settled because both legislatures were biased towards their own stated. Unanimous Amendment Procedurei. In order to pass an Amendment, they had to have a unanimous support of every state = extremely high transaction costse. Great for the peoples freedom…because there were low conformity costsi. The national government couldn’t violate any of your civil liberties and you could get away with a lot of thingsf. Bad for order and bad for solving collective action problems, because of high transaction costs (pg. 53-56)i. Government couldn’t enforce anything because of the hurdles they had to jump to get anything accomplished.g. Free Riding states i. Some states didn’t contribute any resources or funding for lawsii. Valley Forge – starving and poor armed soldiers, we had to rely on France’s fundingiii. Shay’s Rebellion – the farmers didn’t have any money for their farms so they stormed the courthouse and burned the deeds to their land, so they wouldn’t go into foreclosure.iv. Inflation hurt the economy1. According to Madison, inflation is caused by fear and uncertainty of people in the market place that the U.S. government will fail and the dollar won’t be worth anything tomorrow. v. Disputes over territoryvi. Disputes over commerce and Tariffs ** The U.S. had been living under King George who was a dictator that had very low transaction costs which took away freedom of citizens and added conformity costs. The U.S. didn’t want that again, so it made sense that they had an extremely weak government.HOWEVER, Congress couldn’t address these problems because they didn’t have the power to impose conformity costs because transaction costs were too high.James Madison1. Understood Problems of Free Ridinga. He witnessed it2. Understood Problems of Factions (Federalist 10)a. States pursuing their own interests instead of the good of the