What can I speak about?
Your delegate’s position on the specific topic
You can explain a positive of a position that you agree with.
You can explain a negative of a position that you don’t agree with.
Explain how a decision will improve or not improve a current situation under the articles
You can relate the topic to the principles of the constitution
You can relate the topic to economic concepts
You can relate the topic to game theory
Principles
Economic Concepts
Popular Sovereignty- People are the ultimate source of
power, we self-govern. We always retain our rights (republic)
Mutual Voluntariness, self interest, law of supply, price
markets, allocation of votes to their must useful place,
knowledge, information, trade-offs, incentive,
competition
Limited Government- The people will provide the
Government with specific powers that are outlined in
the Constitution.
Rule of Law- Nobody is above the law and laws cannot be
arbitrary applied.
Mutual Voluntariness, self interest,
competition, equilibrium, efficiency, trade-offs,
cost/benefits, marginal analysis, risk reduction,
speculation,
Federalism- The will be a division of power between the
national government and the states. The balance is
imperative to ensure that neither the states nor the
national government abuse their power.
Mutual Voluntariness, Equilibrium, division of
labor, specialization, economies of scale.
A separation of powers and checks and balances- The
ensure in mutual volunteerism and that no branch
becomes too powerful there must be system in place
that prevents abuse from happening.
Mutual Voluntariness, Equilibrium, division of
labor, specialization, competition, efficiency,
trade-offs, cost/benefits, incentives.
An Independent Judicial Branch- Those interpreting the
Constitution must be able to resist the pressures of
others and their own self-interest.
eliminating
Incentive, self-interest, competition , risk
Prevent Government Monopolies of power
Prevent Government Monopolies of power
Creating equilibrium, stability
Ending the Prisoner’s Dilemma?
Articles of Confederation and Perpetual Union between the States (1781-1787)
League of Friendship between states. One house Congress (unicameral)
States had sovereignty and could establish own laws, currency, and tariffs
States had all domestic power, central government had little or no power.
Congress dealt with foreign issues and debt.
Congress had no power to tax and could only ask for donations.
1 state = 1 vote regardless of size or population. 2/3 of states needed to agree to pass legislation
13 out of 13 states had to approve amendments to the Articles.
No judicial branch to judge and no executive branch to enforce congressional laws
The states under this arrangement could act only on their self interest
Articles of Confederation
Problems
Causes
Possible Solution
States did not follow Central
Government’s laws
That Central Government had
no enforcement power
Increase Central Power
The Central Government had no
money. It couldn’t pay debts.
The Central Government had no
power to tax
Give the Central Government
power to tax
Inflation
Over printing by both the Central
Government and state
governments
States created inter-state tariffs,
taxes and navigational rights
disputes
The Central Government had no
power to enforce
National Currency
No Central Power
Increase Central Power
Disputes and division among
states
No trade or treaties with foreign
nations and no reprisals against
nations that hurt trade
Instability both economically and
politically
National court system, central
control of inter-state trade
Make it easier for the Central
Government to act
Resources were not allocated to their most useful purpose. The number one dagger in the
heart of a free market society is instability.
Essential Ingredients for free markets to work
1. Impartial Spectator
2. Own interest- desire to maximize utility combined with the desire to be loved and
lovely. (Impartial Spectator)
3. Division of labor and specialization (synergy)
4. Voluntary exchanges with the mutual benefits that increase production of goods
and services that we value.
5. Empathy (understanding and sharing the feelings of others) coordination of own
interest and the interest of others
6. Choices (leads to competition)
7. Feedback loops – reputation and information
8. Repeating games
All leads to the invisible hand and spontaneous order
Human nature appears
to be simultaneously
self regarding and
other regarding.
Intra Personal
Goal of System: Create a balance between response and circumstances
Adjustment
Feedback
Self correct in order to satisfy our
need to be loved and lovely and
not hated and hateful
Improper and not Prudent
Guilt/Shame/resentment
demerit
Improper reaction- over or under
reactions
Our new adjustments become new
inputs
Must self-correct
Own Regarding
Inputs
Process
Self advancement
New Experiences
Thoughts
Ideas
Conversations
Interactions
Passions/Instincts
Self- Preservation
Defector
Own interest and perspective
Temptation
Values
Memories
Others Regarding
Controller
mechanism
Imaginary 3rd party
Impartial Spectator is developed
to judge our responses as either
proper or improper, based on
established norms and empathy
Outputs
Proper and Prudent
Pride/gratitude
Merit
Proper reaction to
circumstancesLoved and lovely
"one behavioral axiom, 'the propensity to truck, barter, and
exchange one thing for another,'
where the objects of trade I will interpret to include not only
goods, but also gifts, assistance, and favors out of sympathy ...
whether it is goods or favors that are exchanged, they bestow
gains from trade that humans seek relentlessly in all social
transactions. Thus, Adam Smith's single axiom, broadly
interpreted ... is sufficient to characterize a major portion of
the human social and cultural enterprise. It explains why human
nature appears to be simultaneously self-regarding and otherregarding."[4]
Inter-Personal
Goal of System: Create a balance between response and circumstances
Incentive Compatibility
Intra Personal
Goal of System: Create a balance between response and circumstances
Intra Personal
Goal of System: Create a balance between response and circumstances
Adjustment
Feedback
Self correct in order to satisfy
our need to be loved and lovely
and not hated and hateful
Our new adjustments become
new inputs
Inputs
New Experiences
Thoughts
Ideas
Conversations
Interactions
Improper and not Prudent
Guilt/Shame/resentment
demerit
Adjustment
Self correct in order to satisfy
our need to be loved and lovely
and not hated and hateful
Improper reaction- over or
under reactions
Own Regarding
Process
Self advancement
Passions/Instincts
Self- Preservation
Defector
Own interest and
perspective
Temptation
Values
Memories
Others Regarding
Our new adjustments become
new inputs
Must self-correct
Controller
mechanism
Proper and Prudent
Pride/gratitude
Merit
Impartial Spectator is
developed to judge our
responses as either proper or
improper, based on
established norms and
Proper reaction to
circumstancesLoved and lovely
New Experiences
Thoughts
Ideas
Conversations
Interactions
Interpersonal
empathy
Improper and not Prudent
Guilt/Shame/resentment
demerit
Improper reaction- over or
under reactions
Own Regarding
Process
Self advancement
Inputs
Outputs
Imaginary 3rd party
Feedback
Passions/Instincts
Self- Preservation
Defector
Own interest and
perspective
Temptation
Values
Memories
Others Regarding
Must self-correct
Controller
mechanism
Imaginary 3rd party
Proper and Prudent
Pride/gratitude
Merit
Impartial Spectator is
developed to judge our
responses as either proper or
improper, based on
established norms and
Proper reaction to
circumstancesLoved and lovely
empathy
A’s Output
Person A
B’s Input
Outputs
Person B
A’s input
B’s Output
Interpersonal exchange can be voluntary or forced
For voluntary exchanges to occur there must be empathy, persuasion, and mutual benefits.
Both parties must be self and others regarding. This will result in propriety , gratitude and continued exchanges.
In the absences of empathy, persuasion, and mutual benefits impropriety and resentment will result. In situations where there is free exchange, exchanges will end.
The only way to continue the exchange is to adjust or to use force to continue the exchange. Other parties will adapt to avoid force
Non-personal interaction (The Market) (The Invisible Hand)
Goal of System: Create a balance supply and demand resulting in Incentive Compatibility
Adjustment
Free market
Feedback
Improper balance between supply and demand and
costs and benefits
Lower prices, improve quality, and cut
cost to make exchange more lovely
Re-allocation of scarce resources that reduced valued
production and acceptable terms of exchange (price)
Rearrange scarce resources to once again
create value
One sided benefits (if exchange took place in first
place)
Forced
Decreased wealth and reduced standards of living
Influence government to make laws that
forces people to exchange
Resentment
Others will adjust to avoid force
Adjustments must be made. Those unwilling or
unable to adapt will fail- freeing up resources for
other
Self Regarding
Inputs
Wants
Ideas
Circumstances
Resources
Realities
Process
Self advancement
Marginal Costs and Benefits
Values
Desire for profit and fear of loss
Utility maximization
Person greed or gain
Market power
Logic: system is designed so that the potentially dangerous motives of
personal greed and quest for power which cannot be eliminated, are
instead made to control themselves and redirected to contribute to (or not
impede) socially desirable outcomes.
Others Regarding
Controller
Outputs
Marginal Costs and Benefits of
others
Valued production and acceptable
terms of exchange (price)
Empathy
Mutual benefits and profits
Other’s desire for profit and fear of
loss
Increased wealth and standards of
living
Other’s Utility maximization
Proper balance between supply and
demand and costs and benefits
Other’s values and wants
Thank you-thank you
Constitution:
General Goal of Founding Fathers: To produce a balanced state (equilibrium) between Authority and Liberty
Incentive Compatibility
Adjustment
Feedback
Improper or not prudent
Politicians self correct in order to satisfy their need
to be loved and lovely and not hated and hateful
Resentment- demerit
And to maintain or gain power
No adjustment will result in lost
power
Their new adjustments become new inputs
Or
Work within system to create forced exchanges
Self Regarding
Inputs
Wants
Ideas
circumstances
Process
Self advancement
Ambition for power
Advancement
Greed
Personal motive- self centered
Personally desired outcomes
Logic: system is designed so that the potentially dangerous motives of
personal greed and quest for power which cannot be eliminated, are
instead made to control themselves and redirected to contribute to (or not
impede) socially desirable outcomes.
Others Regarding
Controller
Others’ Ambition for power
Popular Sovereignty
Republicanism
Limited Government
Federalism
Separation of Powers and
checks and balances
Re-election
Who elects who
Courts
Outputs
Balance
Proper and Prudent
-Gratitude and merit
-Socially desirable
outcome
-Improved standard
of living