Chapter 13-15 terms

Laissez-Faire

government should not become involved in economic issues.

Keynesian Economics

government can smooth out our business cycles by influencing the amount of income individuals and businesses can spend on goods and services.

Supply-Side Economics

inflation is caused by too many dollars chasing too few goods, so if the supply of goods is raised, the cost of goods will decline.

Monetary Policy

process by which the government controls the supply of money in circulation and the supply of credit through the actions of the federal reserve board.

Fiscal Policy

government action of either lowering or raising taxes, which results in more or less consumer spending or enacting of government spending programs.

Individual income taxes

largest source of federal revenue, collected from wages, salaries, and investments

Payroll Taxes

taxes on wages and salaries paid by both employers and employees to fund social security and Medicare

Corporate income taxes

paid by business on their profits

Excise taxes

taxes on specific goods, such as gas, tobacco, alcohol

Tariffs

taxes imposed on imported goods

Estate Taxes

on the transfer of wealth

Fees and Licenses

revenue generated from user fees

Mandatory Spending

Congress and the president have no power to directly change mandatory spending.

Discretionary spending

spending programs that are not required by law

continuing resolution

temporary appropriations bill that allows the federal government to continue operating at a previous years’s level for a specific duration

James Madison

believed social welfare policy was meant to restrict congress to taxing and spending only on things that the constitution specifically empowered congress to do.

Alexander Hamilton

argued for a broader social welfare that would allow congress to tax and spend things that was not specifically empowered by the congress.

Liberals

believed government has an obligation to provide for social welfare to help the needy.

Conservatives

believe social welfare programs are encroachments on individual liberties and responsibilities.

moderates

believe government should provide opportunities and limited help during difficult times

Social Security Act

created a social insurance program designed to pay retired workers a continuing income after retirement.

Medicare

provides health insurance for Americans aged 65 and older, also some young with disability

Medicaid

provides health insurance for adults and children with limited income and resources.

AFDC

federal assistance program that provides financial assistance to children whose families have low or no income

TANF

a block grant given to each state to administer its own welfare program.

SNAP

Federal program that provides food assistance to low income households.

isolationism

the belief that the US should withdraw from world affairs.

containment

the belief that the US should resist the expansion of aggressive nations

disengagement

the belief that the US was harmed by its war in Vietnam and so should avoid supposedly similar events

human rights

the view that we should try to improve the lives of people in other countries

Civilian control of the military

the nation’s armed forces are subordinate to civilian authorities. elected government not by military leaders

military-industrial complex

a network of government, military, and defense industry players that have a vested interest in promoting a strong military and sustained defense spending.

Congress powers 1

power to declare war by a simple majority vote of both chambers.

Congress powers 2

funds the military and foreign aid

Congress powers 3

Senate must confirm appointed ambassadors and high ranking military personnel

Congress powers 4

Senate must ratify treaties with other nations by 2/3 vote

Congress powers 5

has oversight of the State Department and Defense Department.

President powers 1

Commander in Chief of the Armed Forces

President powers 2

appoints ambassadors and receives foreign ministers

President powers 3

negotiates treaties and executive agreements with other nations

President powers 4

commissions the military officers of the US