Bell Work: 1/23/12

Think about the past semester.• Overall, how did you do in class?• What did you do well?• What do you need to work on?

Congress

Chapter 10

The National Legislature:

• Recall that in the U.S. we have a representative democracy, meaning we elect officials to represent us.

• Our national legislature, or Congress is a prime example of this because these are the are people that run the day-to-day operations of our government.

A Bicameral Congress:

• 3 reason why we have a bicameral legislature:1. Historical- Framers and other Americans were very familiar with the bicameral legislature of the British Parliament.

2. Practical- Framers had to create a bicameral legislature to settle the conflict between the Virginia and New Jersey plans. 3. Theoretical- Framers favored a bicameral congress so that one house might act as a check on the other.

Terms and Sessions:

• Each term of congress last for two years, and is numbered consecutively. (112th Congress)

• Each new term starts on the 3rd day of January in odd numbered years.

• A session of Congress is the period of time during which, each year, Congress assembles and conducts business.

- 2 sessions in each term of Congress.- 1 session each year.

• Congress adjourns, or suspends until the next session, as it sees fit.

• However, a session can’t be adjourned unless both houses agree. -President can adjourn if neither side can agree on a date. (never used)

• Until WWII, Congress would met for four, or five months each year.

• Today, due to all of the pressing issues facing Congress, it is forced to remain in session through most of the year.

Special Sessions:

• Only the President can call Congress into a special session to deal with an emergency situation.-Special sessions are now rare because Congress now meets almost all year long.- Last time a special session was called was by President Truman in 1948.

The House of Representatives:

10.2

Size of the House of Representatives:

• The House of Representatives:- 435 members (set by Congress)- Representation is apportioned, or distributed among the States on the basis of their population.- each State is guaranteed at least on seat in the house, regardless of population.

-7 states only have one.

Terms of Members in the House:

• Representatives in the house serve a two-year terms.

• No limit on the number of terms a person can serve.

Reapportionment:

• Article 1 of the Constitution directs Congress to reapportion, or redistribute the seats in the House.

• Reapportionment Act of 19291.) Set permanent membership at 435.2.) Following each census, the census bureau will determine the number of seats each state should have.3.) When the bureau’s plan is ready, the President must send it to Congress.4.) If neither house rejects the census bureau’s plan, it becomes effective.

Districts:

• For more than 50 years, Congress allowed each State to decide if they wanted to elect its members by a general ticket system or on a single-member district basis.

• Single-member districts: when voters in each district elect one of the states representatives,

• General ticket system: Elected by the State as a whole.

• Now only single-member districts are used.

Gerrymandering:

Congressional Elections:

• Congressional elections are held on the same day in every State.

• Since 1872 Congress has required that those elections be held on the Tuesday following the first Monday in November on even-numbered years.

• Off-year elections are those that occur in non-presidential years.-more often then not, during these elections, the party in power loses seats in the off-year elections

Qualifications of Members:

• Formal Qualifications:1. Must be 25 years old2. Citizen for at least 7 years3. Must live in the State from which they are being

elected.*Long standing custom is that the official must also live

within the district they represent.• Informal Qualifications include anything that will

help get a person elected. (these vary from time to time.)

Bell Work: 1/30/13

• What are the 3 formal qualifications for membership in the House of Rep.?

Bell Work: 1/31/13

• How long is a term in the House of Rep.?• When must congressional elections be held?

The Senate

10.3

The Senate:

• Nearly 1/3 of the current members of the Senate once served in the House of Representatives.

• No current members of the House of Representatives, have ever served in the Senate.

• The Senate is by far that more prestigious house in Congress, and is often called the “upper house”.

Size of the Senate:

• Size: The Constitution says that the Senate “shall be composed of two Senators from each State”.

• Currently 100 Senators in the Senate.

Election:

• Originally, the Constitution provided that Senators were to be chosen by the State legislature

• Since the 17th Amendment in 1913, voters in each State have selected Senators during the regular November elections.

• Only one Senator is elected from a State in any given election, unless another seat has been vacated by death, resignation, or expulsion

Terms:

• Senators serve six-year terms, which gives them a greater degree of job security.

• No limit on the number of terms a Senator can be elected.-Senator Robert Byrd of W. Virginia hold the record serving 9 terms. (1958- Present)

• The Senate is a continuous body, meaning that all of its seats are never up for election at the same time.

• Senators terms are staggered, so that only 1/3 of their terms expire every two years.

• Senators govern a larger area and constituency, which means they need to focus their attention on the “big picture”.

• This enables Senators to get more public exposure, which helps those who have presidential ambitions.

Qualifications for Senators:

• A Senator must meet a higher level of qualifications than those the Constitutions sets for a member of the House.

• Senators Must:- Be 30 years old.-Citizen for 9 years- Inhabit the State in which they are elected.

• The Senate, like the House, judges the qualifications of its members, and may exclude a member by a majority vote.

• The Senate may also punish its members for disorderly behavior, and with 2/3 a vote, expel a member.-15 members of the Senate have been expelled.

* 1 in 1797, 14 during the Civil War.

The Members of Congress:

10.4

Personal and Political Backgrounds:

• The 535 members of Congress are not a good representation of the American people.- average member is a white male- average age in the house is 55, Senate is 60.

• Today there are more women in congress than ever before.

• More importantly, they are moving into strong leadership roles within our government.

Ex: -Nancy Pelosi ( former speaker of the house) -Hillary Clinton (current secretary of State)

The Job:

• Members of Congress play five major roles.1. Legislator2. Representatives of their constituents3. Committee members4. Servants of their constituents5. Politicians.

4 Ways Delegates Vote:

1. Trustees- believe that each question they face be decided on its merits.

2. Delegates- They vote how they think the people they represent, would want them to vote.

3. Partisans- Vote along party lines.4. Politicos- Attempt to combine all of the

above when voting on issues.

Compensation:

• The Constitution states that Congress will be paid for their services.

• It also says that Congress has the power to set that pay.

• So… What do they get?

• Salary: Both senators and representatives are both paid a salary of $169,600 per year.* Some make more, such as…

-speaker of the House = $212,000-majority/minority floor

leaders=$183,500• Nonsalary Compensation:

-special tax deductions-generous travel allowances-generous retirement plan -franking privileges (no postage)

The Politics of Pay:

• Only 2 things that limit congressional pay.1. Presidential veto2. voter backlash

Bell Work: 2/4/13

• Why is the senate called a “continuous body”?

Powers of Congress:

11.1

Congressional Power:

• Remember, Congress has only those powers granted to it by the Constitution.

• Large areas of power are denied to Congress by the Constitutions silence, and because the Constitution creates a federal system.

• There are many things that Congress cannot do.(ex): create public schools, require people to vote, attend church, or set a minimum age for marriage or a drivers’ licenses.

3 types of Congressional Powers:

1. Expressed Power- written in the Constitution.2. Implied Powers- not written in the constitution

but granted to Congress based on the “necessary and proper clause” of the Constitution. ex: highways, prohibition of racial discrimination

3. Inherent Power- Powers that inherently belong to Congress.ex: controlling the nations boarders, acquire new territories.

Strict vs. Liberal Construction:

• Recall the argument over ratification of the Constitution.

• Much of the argument between the Federalist and Anti-federalist centered on the powers of Congress.

• Strict Constructivist- (Anti-federalist) insisted that Congress should only exercise expressed and implied powers.-They wanted State to maintain as much power as possible.

Liberal Constructionist- (Federalist) Believed that Congress should be able to exercise both the expressed and implied powers, as well as the inherent powers.

• Since the beginning of our republic, the U.S. has followed this view, and continues to today.

• The Supreme Court also followed this view when ruling on issues involving national government powers.

Expressed Powers of Money and Commerce:

• Power to Tax: The Constitution gives Congress the power to lay and collect taxes.

• The Purpose of Taxes:-A tax is a charge levied by government on a person or property to raise money to meet public needs-The government sometimes imposes taxes for other reasons.

The Purpose of Taxes:1. Raise money: a tax is levied on people or

property to raise money to meet public needs.

2. Protection: Protective tariffs help protect domestic industries against foreign competition by increasing the cost of foreign goods.-other examples: excise tax used to protect the public health and safety.

Principles of Taxation:

• The various levels of government use different major taxes to raise revenue.

• Taxes are usually justified according to one of two major principles.1. benefits-received: those who use a service should support it

-ex: gasoline tax2. ability-to-pay: those with higher incomes pay more taxes than those with lower taxes.

- ex: property tax to support public schools.

Limits on the Power to Tax:

1. Congress may tax only for public purposes2. Congress may not tax exports.3. Direct taxes must be apportioned among the

States, according to their population.4. Indirect taxes by the Federal Government

must be levied at the same rate throughout the U.S.

Direct vs. Indirect Taxes:

• Direct taxes are those that must be paid directly to the government.

• Indirect taxes is a tax that first paid by one person, but then passed on to another.(ex): Federal tax on cigarettes is paid by the tobacco companies, but then passed on to the retailer, then to the customer.

Bell Work: 1/31/12

• What is the difference between a direct and indirect tax?

The Borrowing Power:• Art. I, Section 8, clause 2 gives Congress the

power to borrow money on the credit of the U.S.• There are no constitutional limits on the amount

of money that Congress can borrow, an no restrictions on the purpose for borrowing.

• However, Congress has put a ceiling on the public debt.-done for political posturing only. (simple raise it when they need to borrow more money.)

• Public Debt: is all the money borrowed by the Federal Government over the years and not repaid. (interest is also included)

• For decades, the Federal Government has practiced deficit financing.

• Deficit financing: Means it regularly spend more money than it takes in, then borrows to make up the difference.

http://youtu.be/iTBODoBaCns

Why Was The Federal Reserve Created? :

• Congress created the Federal Reserve System in 1913, as the central banking organization of the U.S.

• Its purpose was to end the periodic financial panics, or recessions. (extreme ups and downs in the business cycle.)

• Has it worked?

Organization of the Federal Reserve System:

• The Federal Reserve System (Fed): 1. Board of Governors 2. Federal Advisory Council 3. Federal Reserve Open Market Committee 4. Banks

Board of Governors:• Directs and supervises the 12 Federal Reserve

district and member banks.• Includes 7 full time members, who are

appointed by the president with approval of the Senate. (14 year term)

• President appoints one member as a chair person, or head of the Federal Reserve.(Ben Bernanke)

• Their decisions are not subject to the approval by the President or Congress.

Federal Advisory Council:

• Made up of 12 members elected by the directors of each Federal Reserve district bank.

• Meet at least 4 times a year and reports to the board of governors on general business conditions in the nation.

Federal Open Market Committee:

• 12 voting members • Meet 8 times a year to decide if the course of

action the Fed. Should take to control the money supply.

• Raise or lower interest rates.

The Banks:

• The nation is divided into 12 districts, with each district having 1 federal district bank.

• Also includes 25 Federal Reserve branch banks, which help the district banks carry out their duties.

• All national banks are required to become members of the Federal Reserve System, while state-chartered banks have an option.

So…What Does The Fed. Do?

FED

Regulates Money Supply

Supply Paper Currency

Act as Gov’t Fiscal Agent

Supervising Banks

Holding Reserves and Setting Reserve requirements

Clearing Checks

Clearing Checks:

http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/ett/Figure15-3.swf

Money Supply and the Economy:

Money Supply and the Economy:

• One of the most important functions of the Fed. is its control over the money supply, as well as changes in the interest rates.

Loose vs. Tight Money Policy:

• Loose money policy: When credit is abundant, and interest rates are low.

• Tight money policy: When credit is in short supply, and interest rates are high.

* Recall: interest is the percentage you pay for borrowing money.

Loose Economic Policy:

Inflation • Borrowing is easy•Consumers buy more•Business expands•More people are employed•People spend more

Tight Economic Policy:

Recession

• Borrowing is difficult•Consumers buy less•Business postpone expansion•Unemployment increases•Production is reduced

Fractional Reserve Banking:

• Fractional Reserve Banking: is a system in which only a fraction of the deposits in a bank is kept on hand, while the remainder is available to lend.

• Reserve Requirements: regulation set by the Fed., which requires banks to keep a certain percentage of their deposits in their vaults. (10%)

Using Fractional Reserve Banking To Create New Money:

$

Bell Work: 2-6-13

• What is public debt?• Where does Congress borrow money from?

Bell Work: 2-7-13

• What is deficit financing?

• Who appoints the Chairman of the FED?

The Commerce Power:

• Commerce Power: Power of Congress to regulate interstate and foreign trade.

• Remember, under the Articles of Confederation, Congress didn’t have the power to regulate interstate trade.

• This was a major issue that eventually led to the writing the Constitution.

Gibbons v. Ogden (1824):

• This was the first case involving the Commerce Clause to reach the Supreme Court.

• The Court’s ruling was popular at the time because it dealt a blow to steamboat monopolies.

Limits on the Commerce Power:

1. Cannot tax exports2. Cannot favor the ports of one state over

another in the regulation of trade.3. Cannot require vessels to pay duties.4. Could not interfere with slave trade until

1808.

The Currency Power:

• Article 1, Section 8, Clause 5 gives Congress the power to coin money, and regulate the value of said money.

• This power was given to Congress because after the Revolutionary War, States printed their own money, which caused confusion.

• Nearly all framers agreed on the need for a single, national system of “hard” money.

What is Money?:

• Money is part of our daily lives. Without it, we can’t get the things that we want and need.

• Money : Anything that serves as a medium of exchange, unit of account, and a store of value.

• Without money, people would have to acquire goods and services through barter.

• Barter: to exchange one set of goods for another.

3 Functions of Money:

• Medium of exchange: Anything that is used to determine value during the exchange of a good or service.

• Unit of account: helps you compare values of goods and services.

• Store of value: Money keeps its value if you decide to keep it, instead of spending it.

6 Characteristics of Money:

1. Durability- money must withstand wear and tear.2. Portability- People need to be able to take money with

them wherever they go.3. Divisibility- money must be able to be divided easily

into smaller denominations.4. Uniformity- money must be the same.5. Limited supply-if there is too much money in

circulation, it become worthless. (pebbles on a beach)6. Acceptability- people within the economy must accept

the money in exchange for goods or services.

The Bankruptcy Power:

• The Constitution gives Congress the power to set up uniform laws for bankruptcies throughout the United States.

• Bankruptcy is the legal proceeding in which assets are distributed among those to whom debt is owed.

• Today nearly all bankruptcy cases are heard in federal district courts.

Bell Work: 2/2/12

• Explain the power of commerce.

• What was the first court case involving the commerce clause?

11.3 quiz1. What are the 2 key sources of Congress’s

foreign relations power?2. Explain the War Powers Resolution of 1973.3. Name 3 expressed powers we discussed

today.4. What is the difference between a copyright

and a patent?5. If Congress exercises eminent domain, what is

it doing?