Government Structure and Public Sector Economics

Basic Structure of the US Government and Public Choice Theory

Intent and Branches of Government

  • Separation of Powers: The core intent of the Constitution is to establish a separation of powers, a concept heavily influenced by Montesquieu, to prevent tyranny.

    • Legislative Branch (Congress): Makes laws, composed of the Senate and House of Representatives.

    • Executive Branch: Carries out laws, led by the President and Cabinet.

    • Judicial Branch: Interprets laws.

  • Checks and Balances: The system ensures a balance between the branches, with checks on each part to prevent duplication of function and dictatorial government. Actions often require approval from two or three parts.

    • Example: Congress allocates money for a dam, the Executive (e.g., Interior Department) builds it. If the dam infringes on rights (e.g., property rights without due process), the Judicial branch can rule it unconstitutional.

    • Congress allocates money but cannot spend it. The Executive spends money but cannot allocate it. Neither can violate the Constitution; the Judiciary ensures this.

Legislative Branch: Congress

House of Representatives
  • Members: 435435 members, established by law in 19111911. Current maximum is 10,00010,000, minimum is a multiple of 5050.

  • Apportionment: Based on state population, with each state receiving at least one representative (e.g., California has 4545).

  • Requirements: Must live in the state, be a citizen, and at least 2525 years old.

  • Term: 22 years; members must be reelected every two years.

  • Role: Intended to represent the interests of everyday people.

  • Leadership: Led by the Speaker of the House, elected by a majority vote of its members (typically from the majority party).

Senate
  • Members: 100100 members, with 22 from each state.

  • Requirements: Must have lived in the state for 99 years, be a citizen, and at least 3030 years old.

  • Term: 66 years.

  • Historical Context: Until the early 1900s1900s, senators were picked by state legislatures to give states power under the new Constitution; now elected by popular vote.

  • Power and Authority: The Senate generally holds more power and authority and its longer terms provide more experience.

  • Leadership: The Vice President of the United States serves as the President of the Senate and votes in case of a tie.

  • Rules: Each chamber creates its own rules. The Senate famously requires 6060 votes to bring certain matters to the floor (e.g., for general business), though this can be changed (e.g., changed to 5151 votes for judicial appointments).

Law-Making Process
  • A law must pass both the Senate and the House with a majority of the quorum (at least 50%50\% of members present).

  • Presidential Action: The President must sign a bill for it to become law.

  • Veto Override: If the President vetoes a bill, it returns to both houses. If both houses repass it with a two-thirds majority, it becomes law over the President's objection (e.g., War Powers Act vetoed by Nixon).

  • Line-Item Veto: Unlike state governors, the US President must sign or veto an entire bill, leading to the practice of