AP Core Values; Socialization; Political Ideology: Social and Economic policy

American Core Values

Individualism, Equality of Opportunity, Free Enterprise, Rule of Law, Limited Government

equality of opportunity

the idea that each person is guaranteed the same chance to succeed in life--how this is best achieved various based on political ideology

Individualism

a social theory favoring freedom of action for individuals over collective or state control.

free enterprise

Economic system in which individuals and businesses are allowed to compete for profit with a minimum of government interference

Rule of Law

principle that the law applies to everyone, even those who govern

Limited Government

The idea that certain restrictions should be placed on government to protect the natural rights of citizens. ex. Bill of Rights; Article 1 Section 9

political socialization

The process by which we develop our political attitudes, values, and beliefs.

wedge issues

issues that sharply divide the public. ex. abortion, gun control

fiscal policy

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

monetary policy

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

Federal Reserve System

The country's central banking system, which is responsible for the nation's monetary policy by regulating the supply of money and interest rates

Tools of the Federal Reserve

open market operations, reserve requirement, discount rate

Liberal Ideology

A political orientation that favors a more assertive role in the redistribution of economic resources, but emphasizes individual freedom on a range of social issues.

Conservative Ideology

An ideology that advocates minimal regulation of the economy and decreased emphasis on income redistribution.

Libertarian

One who believes in limited government interference in personal and economic liberties

mandatory spending

Federal spending required by law that continues without the need for annual approvals by Congress. Public Assistant Programs and Social Insurance Programs fall under mandatory spending. (ex. Social Security, Medicare)

discretionary spending

Federal spending on programs that are controlled through the regular budget process

interest rates

The cost of borrowing money; the interest you pay on a loan.

The Federal Reserve would lower interest rates to expand the money supply and raise interest rates to contract (shrink) the money supply

open market operations

the purchase and sale of U.S. government bonds by the Fed. The Federal Reserve would sell bonds to shrink the money supply and buy bonds to increase the money supply

reserve requirement

the percentage of deposits that banking institutions must hold in reserve. The Federal Reserve would increase the reserve requirement to shrink (contract) the money supply and lower the reserve requirement to expand the money supply

Life-Cycle Socialization

We continue to be socialized throughout our lifetime. Our political ideology changes based on our age. Ex. Younger people tend to be more liberal on social issues; Older people tend to be more conservative on taxes and economic issues

generational effects on socialization

Significant historical or cultural events that can permanently affect the political attitudes of the people who lived through them. Ex. Great Depression; 9/11

Saliency

the degree to which an issue is important to a particular individual or group. ex. college debt; social security

valence issue

an issue about which the public is united and rival candidates or political parties adopt similar positions in hopes that each will be thought to best represent those widely shared beliefs ex. economy

Keynseian theory

Keynesian economists claim that the government can directly influence the demand for goods and services by altering tax policies and public expenditures. Government should increase its spending (expenditures) to stimulate the economy during times of recession. Ex. New Deal spending; stimulus checks during Covid

Supply Side Economics

An economic theory, first applied during the Reagan administration, holding that the key task for fiscal policy is to stimulate the supply of goods, as by cutting tax rates.