Political Econ 26-50

Capitalism

Private ownership and profit-driven markets

Mixed Economy

A blend of markets and government planning. Most common kind of economy in the world.

Fiscal Policy

Government decisions on spending and taxes.

Monetary Policy

Central bank (The Federal Reserve) decisions on money supply and interest rates.

Taxes

Money people and businesses pay the government to fund the activities and programs of the government. There are taxes on income and consumption, etc.

Tariffs

Taxes placed on imported goods, which can be used to protect domestic industries or raise government revenue. Tariffs raise costs of imported goods, possibly making domestic goods more appealing.

Budget Deficit

a shortfall that happens when government spending exceeds revenue. A deficit can lead to borrowing and increasing national debt.

National Debt

The total amount of money a government owes, accumulated through borrowing to cover budget deficits.

Interest Rates

The cost of borrowing money or the return on savings.

Social Safety Net

Government programs designed to assist individuals such as unemployment benefits, social security, food assistance programs, and medical insurance for the poor and elderly.

GDP (Gross Domestic Product)

The total value of goods and services produced within a country over a specific period. It is a key indicator of a nation’s economic health and performance.

GDP per Capita

GDP divided by the population. It’s used to compare the economic well

Productivity

28. The measure of output (goods or services) produced per unit of input (such as labor or capital). Higher productivity often leads to higher living standards.

Human Capital

The skills, knowledge, health, and abilities possessed by individuals that contribute to their ‘value’ in an economy and their economic productivity. Investments in education and training are key to developing human capital.

Inflation

When prices rise and money buys less

Deflation

When prices fall, often a sign of trouble in the economy.

Stagflation

28. A bad combination of weak or slow economic growth, high unemployment, and high inflation. This is considered particularly challenging to manage for policymakers.

Economic Equity

The principle that economic opportunities should be distributed fairly, though how fairness is defined varies across different political ideologies.

Inequality

The fact of unequal distribution of income, wealth, and opportunity within a society. It can arise due to factors like education, race, and access to capital.

Poverty

Not having enough resources to meet basic needs, such as food, shelter, and healthcare.

Income

Money you earn or receive

Wealth

What you own (assets), minus what you owe (debts).

Globalization

The interconnectedness of the world’s markets economies through trade, communication, and technology, leading to the flow of goods, services, and ideas across borders

Free Trade

A policy that allows goods and services to be exchanged between countries with little or no government restrictions or tariffs.

Protectionism / Economic Nationalism

Using policy to favor domestic industries and protect national interests.