POLI 100C POLITICAL PARTIES
5 April 2007

1. The English Context -- American Institutions are English
   
   
   1. Political -- Representative Government; Separation of Powers; the Common Law
      
      
   2. Economic -- Private Property Rights Enforced by Government
      
      
2. General Theme -- The interaction of Private Property Rights and Representative Democracy.
   
   
   
   
   
   
   This interaction is dynamic and produces feedback effects between the Political System and the Economic System.
   
   
   1. Inventors and Entrepreneurs Create things! These creations produce Unanticipated Structural Changes in the Economy and the social system!
      
      
   2. These Unanticipated Structure Changes Generate Massive Ripple Effects in the Economic and Political Systems.
      
      
   3. These Ripple Effects Produce a Political Response.
      
      
   4. The Political Reponses produces a Feedback into the Economic System by altering the structure of incentives.
      
      
   5. The Nature of the Political Response is shaped by Ideology. The Glue that binds together the members of a Political Party is provided by a set of beliefs about what is "good" -- Who gets what, who should rule.
      
      
   6. The Effects of Shocks Go Both Ways -- There can be Political Shocks -- War -- that produce Economic Change.
      
      
3. The Historical Context of Federalist # 10
   
   
   1. The Economic Grievances that led to the War for Independence
      
      
      1. The Cost of the French-Indian War 1753-1763
         
         
      2. British Payment of Defense Costs of Colonies Led to Attempts to Tax
         
         
      3. The Navigation Acts and Enumerated Articles
         
         
   2. The Political Grievances that led to the War for Independence
      
      
      1. The Economic Burden of Taxation by Britain
         
         
      2. Winners and Losers From the Navigation Acts
         
         
      3. Various Acts of Parliament 1763 - 1774 that Negated Fundament Rights of the Colonists
         
         
   3. The Interaction Between the Economic and Political Grievances