Government Study Guide 1 Two kinds of cots that are especially relevant for designing and evaluating institutions a Transaction Costs those costs involved in making and carrying out a market transaction agreement or contract between two or more parties group b Conformity Costs the difference between what any one person prefers and what they collectively actually agree to individual i Negative relationship when one is high the other is low 2 Government the institutions and procedures through which people are ruled 3 Prisoner s Dilemma Game Game Theory a situation in which two or more actors cannot agree to cooperate for fear that the other will find its interest best served by reneging on an agreement a Demonstrates that individual self interest often leads to social costs b When they are acting on their own self interest there is usually a greater social cost both squeal Quiet Squeal Quiet 5 5 Squeal Free 10 10 Free 7 7 4 Dred Scott v Sandford 1857 effectively nullified the Missouri Compromise and declared slaves to be property not citizens Chief Justice of the Supreme Court said that every state law in the North that banned Slavery was unconstitutional a Missouri Compromise allow Missouri to come into the union as a slave state with Maine as a free state thereby maintaining balance in the Senate 5 The Bill of Rights ratified in 1791 the Bill of Rights consists of the first 10 amendments of the constitution a Guarantees individual liberties and states rights b Guards against potential tyranny of the central government c Was a concession that the Federalists made to the Anti Federalists to ensure that the Constitution would be ratified many states agreed to ratify the Constitution only on the condition that a Bill of Rights would be added during the first meeting of Congress 6 Jim Crow Laws named after a popular minstrel show character of the era adopted throughout the South to disenfranchise black citizens and physically separate blacks from whites a Institutionalized segregation in schools hospitals prisons public parks restrooms housing and public conveyances b Prevent blacks from voting white primary couldn t vote in the primary election poll tax literacy test grandfather clauses 7 Penumbras judicially created rights based on various guarantees of the Bill of Rights The right to privacy is no explicitly stated in the Constitution but the Supreme Court has argued that this right is implicit in various clauses found throughout the Bill of Rights 8 Federalists supported the Constitution because it established a strong central government led by Alexander Hamilton and James Madison 9 Anti Federalists feared the Constitution would produce tyrannical central power and pushed for less centralized system in which the sates would retain their sovereignty led by Thomas Jefferson 10 George Washington opposed the Articles of Confederation 11 Nullification a legal argument states can nullify something the government does ex 10th Amendment overrides the supremacy clause 12 Grant in Aide an important feature of intergovernemental relations a Categorical grants federal dollars are tied to particular programs or categories of spending gov gives the money and is specific on how it is going to be spent favored by democrats b Block grants grants of money appropriated by federal government for general policy programs specific application is determined by the states no specific rules but the state has to set and goal creates variation preferred by republicans c Matching grants a grant giving matching funds usually between one to two dollars d Revenue sharing nonspecific grants of money by the federal government to the states based on size and population favored by republicans 13 Coordination problems get harder when groups get larger decisions are generally delegated to a small group of professionals namely politicians To be successful they must identify a common focal point to target their energies toward a common purpose 14 Carrot and Sticks developed by the national government to induce cooperation from the constitutionally independent states a Carrot financial inducements grants b Sticks regulation and mandates since the 1980s chronic federal budget deficits have led national politicians to rely more heavily on the stick to achieve their policy objectives c Preemption legislation federal laws that assert the national government s prerogative to control public policy in a particular field 15 Clear and Present Danger Test Oliver Wendell Holmes a rule used by the Supreme Court to distinguish between speech protected and not protected by the First Amendment Under this rule the First Amendment does not protect speech aimed at inciting an illegal action a Schenck v United States 1919 set the clear and present danger standard for restricting free speech especially applicable during wartime upheld the Espionage Act 1917 b Espionage Act 1917 foment disloyalty and mutiny in the armed forces during wartime 16 Roosevelt s New Deal a comprehensive set of economic regulations and relief programs intended to fight the Great Depression equal for blacks a FDIC b WPA Works Progress Administration c NCC conservation Corp protect natural resources parks etc d Social Security entitlement benefit date 65 17 Thomas Jefferson is the primary author of the Declaration of Independence 18 The 5th Amendment no person shall be held to answer for a capital or otherwise infamous crime unless on a presentment for indictment of a Grand jury except in cases arising in the land or naval forces or in the Militia when in actual service in time of War or public danger nor shall any person be subject for the same offence to be twice put in jeopardy or life or limb nor shall be compelled in any criminal case to be a witness against himself nor be deprived of life liberty or property without due process of law nor shall private property be taken for public use without just compensation a Barron v Baltimore taking of private property without just compensation Barron sued the city of Baltimore for violating his constitutionally guaranteed property rights gravel and sand buildup impeding access of deep bottomed vessels supreme court ruled against him saying that the Bill of Rights restrained on the actions of the national gov b Due process clause protecting citizens from arbitrary action by the national and state governments 19 Incorporation via the Fourteenth Amendment was a historic development a It took nearly half a century of
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