We the Peoples 14th edition, chapters 11-15

The government shapes economic policy with three tools

fiscal policy, monetary policy, and regulatory policies

The Constitution provides the congress shall have the power "to lay and collect taxes..." but says nothing however about how

about how these powers can be used

Fiscal Policies

economic policies that involve government monetary, spending and taxing policies to manipulate the economy

If the economy is growing too fast, this might bring these three government responses

inflation, the government might cut back on spending or raise taxes

the largest share of federal revenue today comes from

the individual tax, accounting for about half of federal revenues

At the same time, social insurance taxes have risen as a share of federal revenues while, in contrast, ___

corporate income taxes have declined significantly

Redistribution

a policy whose objective is to tax or spend in such a way as to reduce the disparities of wealth between the lowest and the highest income brackets

taxation that hits upper income brackets more heavily

progressive

taxation that hits lower income brackets more heavily

regressive

Unlike state governments, most of which are required by the state constitution to balance their budgets from year to year, the federal government can run a ----

budget deficit

budget deficit

amount by which government spending exceeds government revenue in a fiscal year

national debt

The sum of government borrowing over time.

government spending exceeds revenues: with the federal government borrowing the difference by ___

selling government bonds on which the government pays interest

Subsidies

Financial support from the government which are government grants of cash or other valuable commodities, such as land

contracting

the power of government to set conditions on companies seeking to sell goods or services to government agencies

Today, economic sectors receiving substantial subsidies include

agriculture, energy, transportation, health, and national defense

Like any corporation, a government agency must purchase goods and services by

contract

Contracting can be used to encourage

corporations to improve themselves

contracting examples

Biden required federal contractors to pay a minimum of $15 per hour even though the prevailing federal minimum wage set by Congress is still $7.25.

Decisions about spending are so important that both the president and Congress have created institutions to assert control over the budget process:

1. The Office of Management and Budget (OMB) in the Executive Office of the President.

2. Congress created the Congressional Budget Office (CBO)

The Office of Management and Budget (OMB) in the Executive Office of the President

is responsible for preparing the presidents' budget.

Congress created the Congressional Budget Office (CBO)

so that it could have reliable information about the costs and economic impact of the policies it considers

monetary policies

efforts to regulate the economy through the manipulation of the supply of money and credit; America's most powerful institution in this area of monetary policy is the Federal Reserve Board

monetary policies manipulate

the growth of the entire economy by controlling the availability of money to the banks

Monetary policies are set chiefly by the nation's central bank called

The Federal Reserve System

The Fed, aka the Federal Reserve System has a dual mandate to

ensure price stability and maximum sustainable employment.

who Also provides financial and payment systems to the nations banks and US government

The Federal Reserve System (The Fed)

The most important banks are members of

The Federal Reserve System

The Federal Reserve System is composed of

12 Federal Reserve banks, each located in a major city

The Federal Reserve banks are not ordinary banks; they are bankers' banks that

make loans to other banks, clear checks, and supply the economy with currency

Every national bank must be a member of the _______ _______ _______ & follow the national banking rules.

The Federal Reserve System

State banks and savings-and-loan associations can join the Fed reserve system if they

accept national rules

The Fed Reserve board comprises of

seven members appointed by the President for 14-year terms

The chair of the Fed is selected by

The president

The major advantage that a bank gains from being in the Fed Res Sys

is that it can borrow from the system

Borrowing enables banks to

expand their loans operations continually

What gives the Fed it's true power

the ability to expand or contract the amount of credit available in the US

Another tool of economic policy making is Regulation and Antitrust Policy, aiming to protect the public against potential abuses in two ways

1. The Fed government can establish rules for the operation of big business to ensure fair competition.

2. It can force business to break up into smaller companies if it finds that the business has established a monopoly

antitrust policy

A policy designed to ensure competition and prevent monopoly, which is the control of a market by one company.

Deregulation

the removal of some government controls over a market

Explain the three economic policies.

Fiscal policy seeks to influence the economy through:

Fiscal policy seeks to influence the economy through taking and spending.

Monetary seek to influence the economy through:

Regulation control:

controlling the availability of money and credit to the banks

Regulation seek to influence the economy through:

protecting the public against potential abuses by concentrated economic powers

Federal Reserve administrators help manage the economy by

raising or lowering interest rates to impact credit and the money supply.

Civil Law

A law that governs relationships between individuals and defines their legal rights. Deals with disputes that does not involve criminal penalties.

Administrative Law

The body of law created by administrative agencies (in the form of rules, regulations, orders, and decisions) in order to carry out their duties and responsibilities.

legal precedent

a judicial decision that is used as an example in dealing with later, similar cases

trial court

the first court to hear a criminal or civil case

Court of Appeals

a court that hears appeals of trial court decisions

Supreme Court

the highest federal court in the United States

The supreme court hears from

Both systems: federal and state

The party filing the appeal

appellant

plea bargain

Agreement between a prosecutor and a defendant that the defendant will plead guilty to a lesser offense to avoid having to stand trial for a more serious offense.

Cases are heard in the federal courts if they involve

federal laws, treaties with other nations, or the U.S. Constitution; these areas are the official jurisdiction of the federal courts.

Congress has assigned federal court jurisdictions on the basis of

geography

Federal Courts: the nation is currently, by stature divided into

94 judicial districts.

Every state has at least one district court, and in states with more than one..

.. the district courts are divided by geographic area.

original jurisdiction

The jurisdiction of courts that hear a case first, usually in a trial. These are the courts that determine the facts about a case.

Almost all cases heard by the Supreme Court today are appealed from

lower courts

The 94 federal district courts are organized into

12 regional circuits

In both civil and criminal cases, a decision of the highest state court can be appealed to the U.S. Supreme Court by

raising a federal issue.

due process of law

denies the government the right, without due process, to deprive people of life, liberty, and property

Habeas Corpus

An order to produce an arrested person before a judge.

In criminal cases, the government charges an individual with

violating a statute enacted to protect public health, safety, morals, or welfare;

in civil cases, charges involve

disputes among people or businesses over money or some injury to personal rights.

Criminal cases also involve determining guilt using

a standard of "beyond a reasonable doubt,"

while civil cases are based on the preponderance of

the preponderance of the evidence and can involve comparative fault.

Courts of original jurisdiction are responsible for discovering the facts in a controversy and creating the record on which a judgment is based; while in appellate courts ____

new facts are not presented before appellate courts.

Who has appellate jurisdiction?

Federal Courts of appeals and U.S. Supreme Courts

Most federal cases begin

in the lower courts-- the 94 federal district courts

Unlike federal trial court decisions, decisions by the appeals court are____, except for cases that are ....

final and considered constitutionally binding ; selected for review by the Supreme Court

The most frequent and best-known action of circuit justices is that of reviewing..

reviewing requests for stays of execution when the full Court is unable to do so

The Supreme court was established by

Article III of the U.S. Constitution

The lower federal courts were created by

Congress, and can be restructured or even abolished

The supreme court is made up of

Chief Justice and eight associate justices

Chief Justice

justice on the Supreme Court who presides over the Court's public sessions, always first to speak and vote when the justices deliberate

The expansion of standing opened up the federal courts and gave federal judges much more potential to ..

wield influence.

The federal courts expanded the concept of standing so that nearly any group wishing to challenge the actions of an..

.. administrative agency could have access to the federal courts.

The power of the Supreme Court is

judicial review

The term judicial review refers to the power of the judiciary to examine actions undertaken by

the legislative and executive branches and, if necessary, invalidate them if it finds them unconstitutional.

Judicial Review

The power of the courts to declare laws unconstitutional

Supremacy Clause

Constitution is the supreme law of the land

The Judiciary Act of 1789, gives the Supreme Court appellate jurisdiction over

all the millions of cases of American courts handled each year

Marbury v. Madison case established the Supreme Court's power of

This case establishes the Supreme Court's power of Judicial Review

Marbury v Madision was a landmark case that established that

was a landmark case that established that the Supreme Court had the authority of judicial review and could strike down laws as unconstitutional.

On what basis can the US supreme court review state actions?

the supremacy clause of the Constitution

Under the supremacy clause, the Supreme Court has frequently overturned state constitutional provisions or statutes, state court decisions, and local ordinances it finds in violation of

.. in violation of rights or privileges guaranteed under the federal Constitution or in federal statutes.

when the law allows, presidents sometimes act unilaterally, which happens when Presidents are ..

when they are frustrated by congressional inaction or

1906 Antiquities Act

Allowed the president to create a national monument with the swipe of a pen.

Executive orders allow presidents to change policy on their own, but these changes can be easily altered by

subsequent presidents

Who sits atop the executive branch?

The President

Which article of the Constitution defines the powers of the President?

Article 2 (II) of the Constitution

vesting clause

the president's constitutional authority to control most executive functions

Presidents have three types of powers:

expressed, implied, and delegated

expressed powers

powers directly stated in the constitution

a fourth presidential power does not appear in Article II called

The Inherent power of the office

Expressed powers fall into several categories:

Military, Judicial, Diplomatic, Executive, Legislative

In the military, the President's rank is

Commander in Chief, making him the highest ranking military authority in the US

The President's defense control includes these establishments

CIA, National Security Council (NSA), National Security Agency (NSA), FBI and a host of less well-known but powerful security agencies

A historic example of the unilateral use of Pres. emergency power is the decision by

President Eisenhower in 57 to send troops into Little Rock, AK against the wishes of the Arkansas government to enforce court orders to integrate Little Rock's Central High School.