POL224Y1 Final: POL224 Final Review - Second Half Notes for Final Exam!

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Political Science
Ludovic Rheault

Constitutions and the Courts - Constitutionalism o Two Principles ▪ Legislative Supremacy - Idea: All decisions should be made by parliament o No judicial review, no charter rights, unentrenched constitution o Example: UK ▪ Constitutionalism - Idea: Individuals must be protected from the state o Judicial review, charter of rights, entrenched constitution o Example: US - Definition: The adherence of governments to the rules written in constitution o Before 1940s: Few courts invalidated legislation on grounds of unconstitutionality o Since 1940s: Most countries have moved towards constitutionalism o Two Types of “Constitutions”: ▪ Codified: - Is an actual document, - A higher law containing written rules relative to the formal authority of the state ▪ Uncodified: - No single written document forming the constitution - Only the UK, Israel, and NZ In all cases, there are fundamental rules called constitutional conventions o Properties of Constitutions ▪ Judicial Review: - Allows the courts to invalidate legislation on the ground that is unconstitutional ▪ Entrenched: A constitution that has a clearly defined mechanism for amendments The Canadian Constitution was entrenched and without judicial review before 1982; is now entrenched and explicitly inviting judicial review. - Judicial Review o Early years: Division of powers. o Reference Questions (advisory opinions) o Before 1960, implicit (uncodified) bill of rights o Canadian Bill of Rights (1960) o Constitution Act (1982) and Canadian Charter of Rights and Freedoms o Power of Courts to Invalidate Law o The Constitution of Canada is the supreme law of Canada, and any law that is inconsistent with the provisions of the Constitution is, to the extent of the inconsistency, of no force or effect." Constitution Act 1982, Part VII, § 52(1). o Importance of the Charter o Anyone whose rights or freedoms, as guaranteed by this Charter, have been infringed or denied may apply to a court of competent jurisdiction to obtain such remedy as the court considers appropriate and just in the circumstances." Constitution Act 1982, Part I, § 24(1). Historically - British North American Act o 1867 o Canadian Constitution (BNAA) initially a document of the British parliament. o Unentrenched constitution o Initially no "bill of rights" o Implicit judicial review o Powers of courts not exhaustively defined - Patriation - Charter of Rights and Freedoms o Fundamental Freedoms ▪ Freedom of conscience and religion ▪ Freedom of thought, belief, opinion and expression; including press and communication ▪ Freedom of peaceful assembly ▪ Freedom of association o Legal Rights ▪ Right to life, liberty and security of person ▪ Right to be secure against unreasonable search and seizure ▪ Right not to be arbitrarily detained or imprisoned ▪ Right not to be subjected to any cruel and unusual treatment or punishment o Equality Rights ▪ Every individual is equal before and under the law and has the right to the equal protection and equal benefit of the law without discrimination and without discrimination based on race, national or ethnic origin, color, religion, sex, age or mental or physical disability o Limitation to the Charter ▪ “Reasonable Limits” - “The [Charter] guarantees the rights and freedoms [...] subject only to such reasonable limits prescribed by law as can be demonstrably justified in a free and democratic society.” - What 1 Limits Are Reasonable? o Oakes Test ▪ Objective must be pressing and substantial o Proportionality test ▪ Means rationally connected to objective ▪ Minimal impairment of rights ▪ Benefits outweigh costs - Non - withstanding Clause o Legislators can "overturn" court decisions o Applies only to 2 and 7-15 o Clause valid only for five years - Supreme Court o Courts (Supreme Court) have become more influential actors in Canada through the Constitution o Impact on aboriginal rights and linguistic minorities o Rise of judicial activism Political Economy and Public Policy - Schools of Political Economy o Mercantilism ▪ A doctrine of political economy that promotes the role of the state in increasing the nation’s wealth relative tothther nations ▪ A dominant school of thought until the 18 century, when it was challenged by liberalism ▪ Assumptions and precepts - Nations are fundamental actors - Objective is to maximize stocks of precious metals - National leaders should think in terms of relative power, maintain positive balance of trade, and import raw materials ▪ Links to realism - The precepts of mercantilism are consistent with political realism, the LT dominant school of international relations - Classical Realism: Key Assumptions o States are the main actors of the international system o The system is anarchic o States pursue relative gains ▪ Dark side - Puts priorities of state above that of individuals - Absence of competition: Monopolies in 17 century England ▪ Mercantilism and Balance of Trade - A central idea that states must maintain a positive balance of trade: exports must exceed imports - Seen as a solution to increase (relative) national wealth - Important for nations not producing gold o Liberalism ▪ Context: In the 17 – 18 century Mercantilism was the dominant school of thought. Monopolies controlled English economy and property was owned by nobility. Liberalism was originally a revolutionary ideology which progressively brought forth scientific challenge to mercantilism ▪ Economic Liberalism - A doctrine of PE that proposes to limit the role of the state in the economy, in favor of individual initiative ▪ Assumptions and precepts - Individuals are the fundamental actors and wish to maximize their personal wealth - There is harmony of interest between individuals and society - The market is superior to managed economy - Free trade is beneficial to parties involved (nations should lift barriers to trade) ▪ Counter-argument to Mercantilism - Rich Countries with Negative Balance of Trade o American invests 25 000 in Mexico, produces 50 000 worth of goods and sells them in the USA o Balance of trade negative, but profit positive o Keynesianism ▪ Prescribes policy interventions during economic downturns - Lower interest rates and increase in money supply to stimulate spending - Increase government spending, even if deficits ▪ Re-emphasizes the role of politics in the economy ▪ Example of Keynesianism: The Canadian Welfare State - Keynesian economics paved the way to more state intervention - Provided justification to address demands from worker movement - Key Components o Unemployment insurance, Family Allowance Act, Health care coverage, Canada Assistance Plan o Monopolies ▪ Dark side of mercantilism: Lack of competition and the increase of monopolies ▪ A monopoly is a market containing a single firm that has or is close to total control of the sector. o Oligopolies ▪ Oligopoly is a market structure in which a small number of firms has the large majority of market share. An oligopoly is like a monopoly, except that rather than one firm, two or more firms dominate the market. - Trade Policies and Capital Controls o Comparative Advantage ▪ Theory: - States gain from trade when they produce the goods (or services) for which they have a comparative advantage, that is, the goods for which the opportunity costs are lower than for trading partner ▪ Definition: - A state has a comparative advantage relative to another state * in the production of X if ax/ay < a*x/a*y ▪ Example: - Canada has a comparative advantage in the aerospace sector (production of airplanes). - Japan had a comparative advantage in the automotive sector. - For the same amount of investment, both Japan and Canada produce more if they specialize in the product for which they have comparative advantage. ▪ Implications - In economic theory: o Factors are paid at their marginal productivity - With trade and comparative advantages: o Marginal productivity increases - In the example: o Canada increased production to an equivalent of 1 plane + 2250 cars with the same amount of inputs o Same thing for the trading partners o As a result, trade is expected to improve productivity (hence salaries) in both countries ▪ Balassa Index - A common approach is to retrieve comparative advantages based on observed trade patterns - These are also called revealed comparative advantage (RCA) o Protectionism/Free Trade ▪ The Infant Industry Argument: - Barriers to trade are necessary, if only temporarily, to ensure the development of new industries ▪ The Wage Differential Argument: - Barriers to trade are necessary if there exists a gap between wages of trading countries. - Multi-factor model of trade now illustrates the impact on the distribution of income ▪ Keynes' Argument : - Invokes barriers to trade as a solution to the economic crisis of the 1930s - Uncertainty of exchange rates produces stress on national economy - Proposes barriers to trade and capital to stimulate domestic production - ALTERNATIVE: o Monetarism proposed alternative approach - Argument lost supporters when currencies became more stable ▪ Strategic Commerce Policy: - If firms are competing in a structure of international oligopolies, subsidizing national firms help them increase their market shares, which benefits local economy - Became extremely popular, rejecting consensus in international trade theory ▪ Reciprocity: - Barriers to trade are necessary if the other sta
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