American Political Ideology - Ideology & Policy 2018-2019

Agenda

a list of potential policy ideas, bills, or plans to improve society

Bonds

Certificates of debt that carry a promise to buy back the bonds at a higher price

discount rate

the minimum interest rate set by the Federal Reserve for lending to other banks.

entitlements

Policies for which Congress has obligated itself to pay X level of benefits to Y number of recipients. Social Security benefits are an example.

Federal Reserve Board (The FED)

A seven-member board that sets member banks reserve requirements, controls the discount rate, and makes other economic decisions.

Fiscal Policy

Government policy that attempts to manage the economy by controlling taxing and spending.

Flat tax

proportional tax on individual income after a specified threshold has been reached

Globalization

the process by which businesses or other organizations develop international influence or start operating on an international scale.

Inflation

A general and progressive increase in prices

Internal Revenue Service (IRS)

The branch of the U.S. Treasury Department in charge of collecting taxes

Mandatory Spending

Federal spending required by law that continues without the need for annual approvals by Congress.

Means Test

an income qualification program that determines whether one is eligible for benefits under government programs reserved for lower-income groups

Medicaid

A federal and state assistance program that pays for health care services for people who cannot afford them.

Medicare

A federal program of health insurance for persons 65 years of age and older

monetary policy

Government policy that attempts to manage the economy by controlling the money supply and thus interest rates.

North American Free Trade Agreement (NAFTA)

Agreement that created a free-trade area among the United States, Canada, and Mexico.

Patient Protection and Affordable Care Act (PPACA)

2010 federal legislation designed for comprehensive health reform, with an intent to expand coverage, control health care costs, and improve the health care delivery system

Progressive Tax

A tax for which the percentage of income paid in taxes increases as income increases

reserve requirement

This is the percentage of their deposits that member banks must keep available in a Federal Reserve Bank.

Sixteenth Amendment

The constitutional amendment adopted in 1913 that explicitly permitted Congress to levy an income tax.

Social Security Act of 1935

Created both the Social Security Program and a national assistance program for poor children, usually called AFDC.

Social Welfare

A nation's system of programs, benefits, and services that help people meet those social, economic, educational, and health needs that are fundamental to the maintenance of society.

supply-side economics

An economic philosophy that holds the sharply cutting taxes will increase the incentive people have to work, save, and invest. Greater investments will lead to more jobs, a more productive economy, and more tax revenues for the government.

Trade Balance

the value of a nation's exports minus the value of its imports; also called net exports