PP430: PP430: Planning for Economic Planning for Economic

Growth and Growth and DevelopmentDevelopment

FacultySheila Toppin, DPA (abd),

MPA

Welcome to the ClassWelcome to the ClassGreetingsAvailability

◦Office hours: Tuesday & Thursday 6:00 - 8:00 pm EST

◦Telephone◦Appointments: send an email message ◦Google Voice/Video:

Stoppin@kaplan.eduIce Breaker

◦Personal Triumphs

Course & Syllabus InfoCourse & Syllabus Info10 Units (10 weeks), Wednesday to

TuesdayDiscussion Board – 1 to 2 discussions per

UnitSeminar meets every Thursday at 8 PM ESTAssignments Announcements: Informational &

RemindersLast day to request an Incomplete:

10/22/12 Last day of class: 10/30/12

Course & Syllabus InfoCourse & Syllabus InfoAssignments:

◦Unit 8, short paper◦Unit 9 (Final Project), paperDiscussion Board (20 pts ea)Seminars (10 pts ea)

Unit 8 Assignment – Written Unit 8 Assignment – Written DebateDebate

Debate the proposition, “International agencies and policies that promote free trade are good for economic growth and development in the United States.

Write a 1-2 page position paper, debate your “side” of the above proposition.

The purpose of a debate is to argue the “pros” and “cons” about an issue and persuade the audience that your position is more valid than the other side’s position.

Unit 9 - Final Project Unit 9 - Final Project Write a 6-8 page paper assessing President

Obama and the Congressional Majority Democrats’ stimulus, budgetary, and health care initiatives in the context of promoting Economic Growth and Development.

Are the Democrats’ policy initiatives aimed more at encouraging Economic Growth or Economic Development? Or are they aimed at both?

Address questions related to the challenges of business cycles and social policy; economic theory for policy development; and ideological legacies of the political parties and national platforms.

Unit 8 To-Do ListUnit 8 To-Do ListReadings (text & web sources)Discussion BoardSeminarAssignment(See the To-Do Checklist PDF that is

available in the classroom to keep track each Unit)

Questions??

Economic Growth & Economic Growth & DevelopmentDevelopment

Economic Growth & Economic Growth & DevelopmentDevelopmentEconomic Growth is the increase in a

nation’s, regions or state’s productive output, usually over one year. Involves fiscal, monetary and regulatory policies aimed at promoting economic gains.

Economic Development is the distribution of output across income classes, regions or demographic distinctions. Refers to the achievement of a quality of life for the average citizen of a country.

Main Point - Economic growth is essential for Economic development.

Interstate Commerce Interstate Commerce (Trade)(Trade)“Interstate commerce” means trade, traffic,

or transportation in the United States —1.Between a place in a State and a place

outside of such State, including a place outside the U.S;

2.Between two places in a State through another State or a place outside the U.S; or

3.Between two places in a State as part of trade, traffic, or transportation originating or terminating outside the State or the U.S.

Interstate Commerce Interstate Commerce (Trade)(Trade)Interstate commerce in Oregon…such as goods sent by rail from an Oregon

manufacturer to a plant in another state.such as goods sent by plane from Portland,

Oregon to Kansas City, where it’s then sent by truck to Wichita.

such as goods sent by truck from Haines, Oregon to Fairbanks, Alaska, via the Yukon Province of Canada.

such as goods sent by truck from Portland, Oregon to Rainier, Oregon, via Interstate 5 through Washington.

Interstate Commerce Interstate Commerce (Trade)(Trade)The Commerce Clause refers to Article 1, Section

8, Clause 3 of the U.S. Constitution, which gives Congress the power “to regulate commerce with foreign nations, and among the several states, and with the Indian tribes.”

The Tenth Amendment provides that any powers that are not enumerated in the Constitution are reserved for the states.

The Commerce Clause justifies exercising legislative power over the activities of states and their citizens, leading to significant and ongoing controversy regarding the balance of power between the federal government and the states.

Interstate Commerce Interstate Commerce (Trade)(Trade)The Commerce Clause has historically

been viewed as both a grant of congressional authority and as a restriction on states’ powers to regulate.

The “dormant” Commerce Clause refers to the prohibition against states passing legislation that discriminates against or excessively burdens interstate commerce.

The meaning of the word "commerce" is a source of much of the controversy since the Constitution does not define the word.

Interstate Commerce Interstate Commerce (Trade)(Trade)The Commerce Clause has been used to justify

the use of federal laws in matters that do not on their face implicate interstate trade or exchange.

In Gibbons v. Ogden, 22 U.S. 1 (1824) Sup. Ct. ruled that the power to regulate interstate commerce encompassed the power to regulate interstate navigation.

In Swift and Company v. U.S., (1905) Sup Ct used the Commerce Clause to halt price fixing in the Chicago meat industry, when it ruled that Congress had authority to regulate the local meat market under the Sherman Anti-Trust Act.

Interstate Commerce Interstate Commerce (Trade)(Trade)Commerce Clause Problems (Political Ideologies)The scope of the commerce power depends on

the interpretation of “commerce”. If construed sufficiently broadly, the commerce

power can give Congress the power to legislate in many areas that otherwise would fall within the scope of the states’ police power.

With no set Constitutional definition the Sup. Ct. has flexibility in deciding cases involving the Commerce Clause and enormous power to influence the balance of state versus federal power.

Interstate Commerce Interstate Commerce (Trade)(Trade)Interstate Commerce Laws/PoliciesBetween 1874 and 1919, many laws

were enacted that imposed economic regulation on the dominant means of interstate commerce in the United States: the railroad.

However, federal transportation regulations were not of a sufficient magnitude to justify forming a cabinet-level department solely for matters of interstate commerce.

Interstate Commerce Interstate Commerce (Trade)(Trade)The Sherman Antitrust Act (1890) is a

landmark federal statute on competition law.It prohibits certain business activities that

reduce competition in the marketplace, andrequires the United States federal

government to investigate and pursue trusts, companies, and organizations suspected of being in violation.

First Federal statute to limit cartels and monopolies, and today still forms the basis for most antitrust litigation by the United States federal government.

Interstate Commerce Interstate Commerce (Trade)(Trade)The Interstate Commerce Commission (ICC), is an independent U.S. gov’t agency was

established in 1887 due to mounting public indignation against railroad malpractices and abuses.

ICC regulates services of specified carriers engaged in transportation between states.

The ICC's effectiveness, however, was limited by Congress's failure to give it enforcement power, by the Supreme Court's narrow interpretation of its powers, and by the vague language of its enabling act.

Interstate Commerce Interstate Commerce (Trade)(Trade)Hepburn Act of 1906 expanded the ICC's

domain beyond railroads to all common carriers except airplanes by 1940.

It was also given the task of consolidating railroad systems and managing labor disputes in interstate transport.

In the 1950s and 1960s, the ICC enforced U.S. Supreme Court rulings that required the desegregation of passenger terminal facilities.

Interstate Commerce Interstate Commerce (Trade)(Trade)Interstate Commerce Act of 1935Part I required that railroad carriers to

publicize their rate schedules and forbade rate changes without due notice to the public.

Part II extended federal authority to motor carriers engaged in interstate commerce.

Part III gave the federal gov’t authority to regulate common carriers operating in interstate commerce in the coastal, intercoastal, and inland waters of the United States.

Part IV comprised regulations governing the operations of freight operators.

Interstate Commerce Interstate Commerce (Trade)(Trade)The Clayton Act of 1914Passed in the same year that the FTC

was created, prohibits specific practices such as price discrimination, exclusive dealer arrangements, and stock acquisitions whose effect may notably lessen competition or tend to create a monopoly.

Interstate Commerce Interstate Commerce (Trade)(Trade)Interstate commerce is supervised by

several federal agencies:Federal Trade Commission was

established (1914)Department of Transportation (1967)Federal Communications Commission

(1938)

Interstate Commerce Interstate Commerce (Trade)(Trade)The Civil Aeronautics Board (1938)President Jimmy Carter signed into law

the Airline Deregulation Act of 1978, which would phase out the Civil Aeronautics Board

As a result, the industry became deregulated and the pricing wars began.

Class Activity - Interstate Class Activity - Interstate CompactsCompactsNational Center for Interstate

Compacts Databasehttp://apps.csg.org/ncic/Is your state a member?Find a recent interstate compact. What is it?Who is it with?

Class Activity - VideoClass Activity - VideoOregon’s Agriculture, Economy and

Managed Growthhttp://www.aol.com/video/oregons-

agriculture-economy-and-managed-growth/516906184/

What strategies has Oregon used to promote and maintain economic growth?

What indicators (measures) are used to determine growth in this state?

How could your state benefit from Oregon’s economic plan?

Unit 8 Seminar SummaryUnit 8 Seminar SummaryReviewed upcoming assignment

expectationsDefined interstate commerce Discussed interstate commerce history,

challenges, key legislation, laws, policies, agencies

Utilized the State of Oregon as a studyClass Activity – National Center for

Interstate Compacts Database & Video on Oregon’s economic growth & discussion

Final Questions???Dismissal