Myth

          The Great Depression was not the first depression America had seen. There was several more before it but the Great Depression did last the longest. There is a relation between money supply and the economy. When the government expands the money supply and the credit supply, interest rates fall. The money that is floating around is “easy money.” This money is spent on capital goods and helps businesses. Soon the interest rates rise and profits are lowered. The effects of the “easy money” wear off and inflation occurs. By 1928 the Federal Reserve System had raised interest rates by 4 times. The money supply lowered because of this which leads to the Great depression and they FED continued to raise interest rates. The Great Depression happened with many events spiraling to the economies fall, it wasn’t one huge occurrence.  A free market will run through the business cycle constantly and will suffer but it will fix itself. The economy was not fixed all by government intervention. Yes, the government helped a bit, but the economy began to repair itself with time. President Hoover implemented a laissez-faire economy, which means “hands-off”, or that the government shouldn’t help the economy when it is suffering from a depression.  When the Smoot-Hawley act passed which taxed all imported goods many problems arose. Unemployment skyrocketed and the tax on the goods nearly tripled. When Franklin D. Roosevelt became president in 1932 and he implemented The New Deal. The main focus of this was relief, recovery, and reform. While trying to set his plan in action he rose the government spending from 3$ million to 10$ million, putting the government in more debt than before. Most of The New Deal was recognized to be unconstitutional and was soon gotten rid of. With this, the economy began to slowly rebuild and recover itself. 

My City

In creating a city that the economy would prosper would include a free market economy, entrepreneurs, and technology change, resulting in economic freedom.

In the free market economy the prices are determined by the supply and demand. In this type of economy the “invisible hand guides each self-interested market participant to act in the interests of others.” This type of market is similar to the selling pizza exercise in class. If there is more supply of pizza the average person wouldn’t pay a large amount of money for it, but if there is a demand for pizza people will pay a larger prize for it. If one wants to be successful they must become business people. The businesses people start will employ workers which will give people jobs and get money circulated through the economy.

In order to start an economy entrepreneurs are vital. Entrepreneurs are people who own or manage a business that was a risk. These certain people have an idea that they act upon and if successful will begin to grow their business. This will employ other people and give people things to buy which will flow money into the economy. I feel that entrepreneurs have to be greedy to make them successful. In the video we viewed in class it explained that greed isn’t a bad thing all the time. The more money these people put into the economy and eventually make for themselves creates more money and supply for the average person.

Another important thing in a city is using technology effectively. “Technological change not only gives us more options as consumers, it makes us more productive as workers.”  Using technology correctly and effectively allows the manufacturer to produce more products which creates more supply. More people will buy something if there is more of it at a lower cost. Technology allows producers to sell more which makes more money which in turn produces more money into the economy.

With a free market economy, entrepreneurs and technology an economy of economic freedom is created.  With Economic freedom a system of rules is created where “property rights are protected and the rule of law prevails. Countries with economic freedom have low tax rates, low amounts of regulation, and very little corruption.” With these essential aspects an economy is created that can grow and prosper.

(Quotes are taken from “The Success of an Idea: American Economic Development, 1787-2010.” By Ryan Johnson)

Lesson 4 Essay

James Madison stated in Federalist 51 “In framing a government which is to be administered by men over men, the great difficulty lies in this: you must first enable the government to control the governed; and in the next place oblige it to control itself.” The “difficulty” in this of the paradox is that a government needs to be created that can govern the people fairly and just and also be able to control themselves. This could be difficult for a government because the people give so much power to the official’s places in government positions. This power can be toiled with and used to govern people unjustly. Because of this the government now has primary control and the auxiliary precautions.  Primary control is the dependence on the people by voting. By the people choosing the elected officials they can vote for people and values they want to be represented by. Auxiliary precautions are the separation of powers and checks and balances. Separation of powers is that the government is split into 3 branches that deal with different aspects of law.  Another aspect of separation of powers is the division of power or federalism which splits of power between the state and national governments. 

The Inspired Constitution

Even though the Founding Fathers weren’t prophets they were men of God. Those men listened to the inspiration that God gave to them during the writing of the Constitution.  The Constitution wasn’t only written for the people in the colonies but for all men. All men are created equal and all have the same rights. The Founding Fathers understood this concept and implemented it in the constitution. This document was created to protect all people and their rights. The Doctrine and Covenants reads “We believe that no government can exist in peace, except such as are framed and held inviolate as  will secure to each individual the free exercise of conscience, the right and control of property, and the protection of life”. This scripture states man’s natural rights, life, liberty, and property.  The Founding Fathers came to earth to write the constitution and change the path of the United States. The Lord knew type of government that was needed and revealed it to the men who wrote it and inspired the separation of powers and bicameral house.  Another huge part of the Constitution that was inspired was popular sovereignty, where the people have a say in how they are governed. Sovereignty does not have a king who creates laws and such but the power comes from the people.  The Founding Fathers were men inspired by God to change the path of the United States to make it a place where Gods children could be governed correctly and fairly. 

Were the colonies morally justified in declaring independence?

The colonies were morally justified in declaring independence because many of the things Great Britain did toward the colonies. Great Britain passed many acts and laws that were not always fair for the colonists. Most the acts and laws were against the colonists rights and they were a corrupt government. It states in the constitution that if the government is immoral and corrupt the people have the right to over throw it and revolt.

The first major law that the British government passed that was not good for the colonies was the proclamation of 1763. This law stated that the settlers that settled west of the Appalachian Mountains and people already living in that area to return east. This was to try to ease the tensions with the Native Americans. The colonists objected to this law because many people were established in that area. The boundary lines changed because of treaties with the Indians. 

The sugar act was passed April 5, 1764. It was an indirect tax but the colonists were aware of it. It was a tax on imported goods so many of the goods were smuggled into the towns.  It affected mostly the merchants and shippers who had to have their things go through the ports so they were taxed. The colonists were not very happy and the two major protesters against this act were Samuel Adams and James Otis.  In August 1764, fifty Boston merchants stopped buying imports from Britain. In a few places they increased colonial manufacturing. There weren’t any huge protests over the Sugar Act. The Sugar Act was revoked in 1766 and replaced with the Revenue Act of 1766 which lowered the tax amount.

During the war the soldiers needed places to stay so parliament passed the Quartering Act of 1765. This act stated that American colonies had to provide housing and provisions for soldiers. Many of the colonists were very angry by having to house soldiers in their houses and so some colonies refused to house them.

The British parliament passed the Stamp Act in 1765 stating that any writing and printed materials had to be on stamped paper. Any newspapers, magazines, and other written articles that passed through the colonies had to be on this paper. The colonies fought this act by not sending any representatives to Parliament. On March 18, 1766 the act was repealed but parliament then passed the Declaratory Act, which stated that the British government can regulate taxes anyway they wanted. The colonies were very angry and started to protest which helped the movement towards the American Revolution.

In 1767 parliament passed a series of laws called the Townshend Acts. The purpose of this act was to raise taxes so the judges, governors and other elected officials could be paid a salary. Most of the colonies boycotted this act. This act was partially repealed but the tax on tea remained. The tea act was passes in 1773 which allowed the East India Company to ship tea to the colonies. Because of this the Boston Tea Party occurred which was the start of the American Revolution.

The Coercive act or the Intolerable acts of1774 were passed because of the Boston Tea Party.  The actions parliament took for this act closed the Boston port, altered trials, and removed some religious acts.  The colonists saw these acts as a violation to their constitutional rights. Since these laws were angering the colonists more people wanted to go against Britain.

In 1775 the colonies were so angry with Britain so they declared rebellion.  Patrick Henry, a leader from Virginia, stated:

“Gentlemen may cry peace, peace—but there is no peace.  The war is actually begun! The next gale that sweeps from the North will bring to our ears the clash of resounding arms!  Our brethren are already in the field!  Why stand we here idle?  What is it that gentlemen wish?  What would they have?  Is life so dear or peace so sweet as to be purchased at the price of slavery?  Forbid it, Almighty God—I know not what course others may take; but as for me, give me liberty or give me death!”

When King George heard about the colonies revolting he insisted that the rebellion was a “desperate conspiracy” of the people who claimed to follow him. He said that all the colonies really wanted were to create an “independent Empire”. He said he would deal with the armed forces and was considering a “friendly offers of foreign assistance” to stop the rebellion.  When the king didn’t actually do anything the Empire was weakened and the rebellion and move to independence was strengthened.

During this time of rebellion many men stood up and became leaders now known as the founding fathers. They led the rebellions and most were signers of the constitution and the declaration of independence. John Adams, one of the founding fathers, stated:

“A constitution founded on these principles introduces knowledge among the people, and inspires them with a conscious dignity becoming freemen; a general emulation takes place, which causes good humor, sociability, good manners, and good morals to be general. That elevation of sentiment inspired by such a government makes the common people brave and enterprising. That ambition which is inspired by it makes them sober, industrious, and frugal.”

The founding fathers wanted a nation that had a good moral government. They understood that a good government would protect the people and govern them correctly.

 The colonies understood that they could die by declaring independence but also understood that if government was corrupt they could overthrow it. Even though they were rebellion against their government they were still good people. The British government was passing laws that were violating the people’s constitution rights which justify the colonies rebellion. Every person has a right to life, liberty and the pursuit of happiness. The colonists had those rights taken from them and they had every right to fight to get them back.