How does a constitution relate to our daily existence?
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Regular readers of this blog know of my interest in constitutions and how they affect the prosperity, or lack thereof, of nations. A recent conversation with a friend prompted this line of thinking about constitutions and how they matter in our everyday life even though it may appear that constitutions are rather remote and cannot possibly be relevant in our lives.
People act, individually and collectively, within institutional constraints. These institutions are created by and embody rules that have developed historically partly through some social evolutionary process, and partly through some correctly or incorrectly conceived constructed processes.The constitution is to a nation what character is to a person. A person’s nature or personality determines how a person behaves or responds to circumstances. Under similar situations, people respond differently based on their personalities. In a sense, the constitution defines the character of the collective we call a nation. Individuals act in response to the incentives they face, incentives that are created by the institutional settings which are ultimately derived from the constitution.
At the highest level, the constitution determines which of our activities will fall within the economic sphere and which in the political sphere. In the economic sphere, the production and consumption of goods and services are determined by voluntary exchange in markets. In the economic sphere, competition is between and among producers, and consumers choose what and how much they will buy.
People act, individually and collectively, within institutional constraints. These institutions are created by and embody rules that have developed historically partly through some social evolutionary process, and partly through some correctly or incorrectly conceived constructed processes.The constitution is to a nation what character is to a person. A person’s nature or personality determines how a person behaves or responds to circumstances. Under similar situations, people respond differently based on their personalities. In a sense, the constitution defines the character of the collective we call a nation. Individuals act in response to the incentives they face, incentives that are created by the institutional settings which are ultimately derived from the constitution.
At the highest level, the constitution determines which of our activities will fall within the economic sphere and which in the political sphere. In the economic sphere, the production and consumption of goods and services are determined by voluntary exchange in markets. In the economic sphere, competition is between and among producers, and consumers choose what and how much they will buy.
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