Chapter 5: Westward Expansion
Summary
Chapter 5 presents the key features of the U.S. Constitution while describing some of the events leading
up to this new national framework. Special attention is given to how the federal Constitution facilitated
economic development in a relatively short period of time through secured private property rights and
the even-handed enforcement of private property rights a relatively short period of time. The Land
Ordinances of 1785 and 1787 are also described. This is followed by a discussion of how these land
policies helped attract new investment, support continued investment and productively mobilize
resources in the western territory of the U.S.
Key Terms and Concepts
1862 Homestead Act
Bill of rights
Collective property rights
Economic self-interest
Free-rider
General preemption
Land ordinances of 1785 and
1787
Liberty
Private property rights
Public domain
Public land
Reserved rights
Speculation
U.S. Constitution
Teaching Tips
1. Define a free market economy as one that possesses the following traits: private property
rights, a government limited to providing protection and public goods, free trade, competitive
markets in products and resources, and proper incentives for self-interested individuals to
maximize value. Now look at the “Federal Constitution in Brief” which is provided by the
authors of this text. Ask students to discuss how different clauses of the Constitution support
private growth in the free market economy. Explain why private ownership and control over
productive resources are keys to economic growth and prosperity.
2. Ask students to research the Land Ordinances of 1785 and 1787. Request that they use this
research to explain how these land ordinances helped mobilize idle land and natural resources,
organize the movement of public resources into private hands, increase investment and attract
new investment westward.
3. Define the free-rider problem. Explain how a free rider problem is likely to surface any time you
cannot attach effectively the benefits of a certain activity to its costs. Ask students to list a few
public services or goods. Ask them to attach a free rider to each item. Now, draw their
attention to the free rider problems present in public lands – parks, fishing and wildlife areas,
etc. Now, ask students to explain why communal property rights to these areas could lead to
inefficient resource allocation and less than desirable outcomes.
4. Ask students to think about what it really means to offer goods or services for “free.” Now ask
students to think about public goods and services offered to people at no direct money cost.
State that resources are needed to produce goods and services, whether public or private.
Resources used for public services are not used for private ones and vice versa. So, public goods
are really not “free”. They are paid for by taxpayers and through their sacrifice of similar goods
and services. Gear students toward thinking about the resources behind particular public
services or goods like national defense. Explain how free-rider problems surface because there
is difficulty associated with charging people for the value of what they take individually from
protection of U.S. borders. Ask students to think about private alternatives to providing this and
other public goods or services. Now turn to history. Discuss the advantages and disadvantages
of offering public lands with and without attaching a cost to its uses. Encourage students to use
the economic vocabulary when doing so.
5. Ask students to compare and contrast communal and private property rights. Invite them to
explain why one is more likely to promote economic growth and prosperity than the other.
6. Explain that political, social and economic corruption is a historic part of the U.S. system. Use
the General Preemption Act of 1841 to illustrate.