First Amendment
One of the most important amendments to the United States Constitution encapsulating several rights deemed essential to liberal democracy: freedom of religion, of speech, and of the press, and the right of the people to assemble and to petition the government. This amendment is one of the those added to the Constitution as a
Bill of Rights
immediately after it was first drawn in order to assuage the concerns of those who feared the emergence of an overbearing central government. In the twentieth century, the Supreme Court, drawing on the ‘
due process
’ wording of the Fourteenth Amendment, has argued that First Amendment freedoms are also protected from impairment by the states.
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First International
first-past-the-post
Nickname given to electoral systems, such as the British system and the Canadian federal system, in which the country is divided into constituencies, and only the winners of constituency elections are elected to the legislature, without any further attempt to make the proportion of parties in that legislature resemble support in the country as a whole. Such systems can give absolute majorities to parties with considerably less than 50 per cent of the vote. In theory a party could win all seats in the legislature with (1/n) +
c
votes, where
n
is the number of parties and
c
is the number of constituencies. In practice, the system encourages a small number of parties and, arguably, sets up a tendency towards a two-party system ( see
Duverger's law
). Certainly, it has often allowed a majority government to be formed with little more than 40 per cent of the votes cast for the winning party (which often means only 30 per cent of the registered electorate.)
The principal advantage of the system is that it is more likely than other systems to produce an effective legislative majority. Such a majority will not necessarily be representative of the voting population. Minority rule of this kind is only acceptable in certain kinds of society that are prepared to tolerate the allocation of government according to a system analogous to a horse race.
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fiscal crisis
Actual or supposed inability of the state to raise enough tax revenue to pay for its programme. Theories of fiscal crisis were widespread in the 1970s, both among Marxists such as James O'Connor (
The Fiscal Crisis of the State
, 1973), and non-Marxists such as Samuel Brittan (
The Economic Consequences of Democracy
, 1977). These writers argued that no government could extract more in tax revenue without imperilling liberal democracy, nor could it cut services. Theories of fiscal crisis appeared to be discredited in the 1980s. In the United Kingdom, the Thatcher administrations lowered the top marginal rates of income tax. Because the burden of tax was shifted to indirect taxes, especially value added tax, enough people seem to have believed the false claim that the burden of tax had been reduced for democracy to survive. In the United States, there were significant tax reforms in 1981 and 1986, which again broadened the tax base and cut marginal rates of income tax. New Zealand introduced a tax reform of similar scope. So long as taxes are collected in imperceptible ways—such as through National Insurance contributions—it seems that fiscal crisis can be put off.
But it will not go away. The ageing of the population in advanced capitalist states means that health and social security expenditure per head must rise sharply to maintain the same level of service, to be paid for by levies on the economically active, who form a declining proportion of the population. Generally, politicians are unwilling to admit to this harsh truth, so it is predictable that talk of fiscal crisis will recur when the illusions cease to work.
fiscal policy
A government's taxation and spending activities. Fiscal policy enables the government to raise revenue in order to provide
public goods
which would not otherwise be provided by the market, such as a police force, national defence, and so on. The tax system may also have an effect on the distribution of income, and the allocation of resources in the market. A government's fiscal policy will have a broader effect on economic activity, unemployment, and inflation. Under Keynesian policies fiscal measures should be used to smooth out the cyclical,
stop-go
, nature of economic development, by stimulating the economy during slumps, and deflating the economy during booms.