Policy Unit Exam

Roles of President as chief diplomat

recognize foreign government, make treaties, and executive agreements

Supply Side Economics

theory that maintains that increasing the supply of goods and services is the engine for economic growth. It advocates tax cuts as a way to encourage job creation, business expansion, and entrepreneurial activity.

Budget deficit

federal government's spending exceeds its revenues

Deficit spending

government spending, in excess of revenue, of funds raised by borrowing rather than from taxation.

Deregulation

involves the reduction in market controls

Entitlements and Entitlement programs

Social Security, Medicare, Medicaid

**Keynesian Economic**s

because prices are somewhat rigid, fluctuations in any component of spending—consumption, investment, or government expenditures—cause output to change

Laissez-Faire Economics

transactions between private groups of people are free from any form of economic interventionism

Fiscal Policy

federal gov policies on taxes, spending, & debt management, intended to promote the nation’s macroeconomic goals, particularly w/respect to employment, price stability & growth;  conducted through the federal budget process

Means testing

measuring people's income in order to decide who gets money from the government for medical care, education, legal services, etc. or how much people get

Monetary Policy

a form of gov regulation in which the nation's money supply & interest rates are controlled; by the Federal Reserve Board; Adjusting interest rates to increase or decrease inflation.

National Debt

the amount of money that he gov has borrowed in nation’s history, which is the net amount of the government’s surpluses and deficits

Subsidy

a transfer of money from the government to an entity.

federal income tax

the tax you pay on your annual income to the federal government; progressive

Progressive Taxes

those w/ higher incomes pay higher proportions of income (currently have this)

Ppl who make more have to sacrifice money; disutility

**Excise tax**

tax on specific goods or services at the time they are purchased 

Regressive Taxes

those w/lower income pay the same (flat tax) or greater proportion (SS) of their income

Monroe Doctrine

warns European nations that the United States would not tolerate further colonization or puppet monarchs

Executive Agreements

formal gov agreement entered into by the exec branch that does not require the advice and consent of the US Senate (doesn’t require Senate ratification)

Prior to 1972, pres didn’t need to inform Congress of text of these accords

Pres normally uses this for routine business matters such as running embassies

Federal Reserve System

The U.S. central banking system; the most powerful economic institution in the United States, perhaps the world. Its core responsibilities include setting interest rates, managing the money supply, and regulating financial markets

Federal Reserve Board

oversees the operations of the 12 Reserve Banks and shares with them the responsibility for supervising and regulating certain financial institutions and activities

Isolationist foreign policy

advocated non-involvement in European and Asian conflicts and non-entanglement in international politics

**The National Security Counci**l

executive agency responsible for advising the president about foreign and military policies and events 

Set up to institutionalize the system by which the gov integrated foreign military policy and to coordinate US activities on a range of foreign policy and military issues

Provides advice on foreign and military affairs directly to the president

National Security Advisor

serves as the principal advisor to the President of the United States on all national security issues

The Central Intelligence Agency

Executive agency responsible for the collection and analysis of information and intelligence about foreign countries and events

13 agencies within this including The Defense Intelligence Agency, the National Security Agency, 4

armed services intelligence groups, the National Imagery and Mapping Agency, the National Reconnaissance Agency and others 

In 1970s, Congress heavily criticized this

Medicare

the federal program established in the Lyndon B Johnson administration that provides medical care to elderly SS recipients

Medicaid

expansion of medicare, this program subsidizes medical care for the poor; must qualify under TANF & SSI

1996 Welfare Reform Bill

the end to AFDC as a categorical entitlement and its replacement by a time-limited benefit program, tied to a work requirement

Federal Budget Process

After the president submits his or her budget request, the House Committee on the Budget and the Senate Committee on the Budget each write and vote on their own budget resolutions

Issue Networks

an alliance of various interest groups and individuals who unite in order to promote a common cause or agenda in a way that influences government policy

Clinton’s policy of Engagement

United States would remain actively involved in foreign affairs; US wouldn’t retreat into isolationism

Jay’s Treaty

First treaty softened relationship w/ Great Britain

National Environmental Policy Act of 1969

created to ensure federal agencies consider the environmental impacts of their actions and decisions.

Roles of Federal Agencies

the management of resources, financial oversight of industries, or national security issues

Lend-Lease Program

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Program during WW2 in which the US lent Great Britain military equipment & supplies in exchange for leases on bases 

Kyoto Conference

Clinton administration passed this on Global Climate Change 1997 international conference to develop agreements to reduce the emission of greenhouse gasses that contribute to global warming

pluralist theory

believe that social heterogeneity prevents any single group from gaining dominance