chapter 17 & 18 terms

public policy

the course of action the government takes in response to an issue or problem

social issues

political debates involving moral judgments about how people should live

Economic Issues

Issues related to money, taxes, and production of goods and services.

majoritarian politics

a policy in which almost everybody benefits and almost everybody pays

client politics

a policy in which one small group benefits and almost everybody pays

entrepreneurial politics

A policy in which almost everybody benefits and a small group pays the cost

interest groups politics

A policy in which a small group benefits and a small group pays the cost

welfare programs

Government assistance for those who meet eligibility requirements

Social Security Act

guaranteed retirement payments for enrolled workers beginning at age 65; set up federal-state system of unemployment insurance and care for dependent mothers and children, the handicapped, and public health

Medicare

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

Medicaid

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

Medicare Act of 1965

It amended the Social Security program to include health insurance for the elderly; also set up medicaid

Affordable Care Act

An expansion of medicaid; also referred to as "Obamacare", signed into law in 2010.

AFDC (Aid to Families with Dependent Children)

Program to distribute welfare benefits that formerly was federally funded but devolved to the states in 1996

TANF (Temporary Assistance for Needy Families)

Financial assistance to the poor that replaced the AFDC program.

monetary policy

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

fiscal policy

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

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

budget surplus

an excess of tax revenue over government spending

budget deficit

a shortfall of tax revenue from government spending

national debt

The sum of government deficits over time.

Office of Management and Budget (OMB)

Presidential staff agency that serves as a clearinghouse for budgetary requests and management improvements for government agencies.

Congressional Budget Office (CBO)

An agency of Congress that analyzes presidential budget recommendations and estimates the cost of proposed legislation.

16th Amendment

Allows the federal government to collect income tax

flat tax

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

progressive tax

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

mandatory spending

Required govt spending by permanent laws

discretionary spending

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

Keynesian economics

the belief that the government must manage the economy by spending more money when in a recession and cutting spending when there is inflation

supply-side economics

the belief that lower taxes and fewer regulations will stimulate the economy