Domestic Policy Essentials Notes

Fiscal Policy

The use of government spending and taxation to influence the economy. It aims to manage economic fluctuations and promote growth.

Monatary Policy

The process by which a country's monetary authority manages the money supply and interest rates to achieve specific economic objectives, such as controlling inflation, consumption, growth, and liquidity.

Federal Reserve system

The central banking system of the United States containing 12 federal banks, responsible for implementing monetary policy and regulating banks in order to maintain financial stability.

Regulation

The management of complex systems according to a set of rules or laws, often aimed at ensuring stability, safety, or economic stability in markets.

Anti -Trust Policy

Governments efforts to regulate large businesses that have established monopolies in some market and to promote competition by preventing unfair business practices.

Monopolies

Exclusive control of a commodity or service in a market by a firm or company, making it difficult for competitors to enter the market.

deregulation

The process of removing or reducing government rules controlling how businesses can operate, often aimed at promoting competition and encouraging economic growth.

Keynesian

economic theory advocating for increased government spending and reduced taxes during economic downturns to stimulate demand and foster growth.

Supply Side Economics

An economic theory that argues for lower taxes and less regulation to encourage investment, production, and economic growth.

Welfare State

the collection of policies that provide social and economic assistance to its citizens, including healthcare, education, and financial support.

Contributory Programs

Programs financed by taxes or contributions from the beneficiaries, providing benefits such as social security and unemployment insurance.

Medicaid

Modern welfare system providing health coverage for low-income individuals and families.

Medicare

A federal program providing health coverage for the elderly and disabled.

Redistribution

reducing the disparities of wealth between the lowest and highest income brackets

Progressive

Taxation hits the wealthy harder than the middle lower class

Regressive

taxes burden lower income families more