Folk Theory of Democracy
The idea that voters choose politicians who represent what they want.
Folk Theory of Democracy
Everyone wants the same outcome but needs one common decision.
Coordination
Externality
When an activity affects someone who wasn't part of the deal.
What was one major problem with this system? and what issues did it cause?
The national government was too weak, including limited taxing/enforcement power, each state had diff currency, No Executive or Judicial Branch, No Power to Regulate Trade, No Standing Army
created a weak central government that could not effectively manage the new nation, leading to severe economic and political crises. [1]
The first ten amendments to the Constitution.
Bill of Rights
Why might people be wrong about which policies are good?
People may lack knowledge or attention.
Collective Action Problem
A problem that requires a group to work together.
Education is an example of this type of externality.
Positive externality
America's first national government system.
Articles of Confederation
Essays written to support the Constitution.
Federalist Papers
Why is the idea that everyone votes a problem?
Many people don't vote.
Someone gets a benefit without helping.
Free Rider
Pollution is an example of this type of externality.
Negative externality
Virginia Plan
This plan wanted representation based on population.
When the majority uses its power against a smaller group.
Tyranny of the Majority
What role does the media play in the Folk Theory?
The media tells voters what politicians did.
People use too much of a shared resource.
Tragedy of the Commons
What can government use to reduce a negative externality?
Fines, taxes, or regulations
New Jersey Plan
This plan wanted equal representation for states.
When a small group has too much power.
Tyranny of the Minority
Name two problems with the Folk Theory.
People can be uninformed, people may not vote, politicians may not represent everyone, and media can be flawed/biased.
People benefit from cooperation but have an incentive to betray each other.
Prisoners' Dilemma
When one person knows more information than another.
Asymmetric information
Connecticut Compromise
This compromise created the House and Senate.
Why was the Bill of Rights wanted?
To protect individual rights and limit government power.