Federal Bureaucracy and Economic Policy

These flashcards cover key concepts related to the federal bureaucracy, economic policy, funding, and taxation as discussed in the provided lecture notes.

What is the federal bureaucracy?

A system of departments, agencies, and organizations responsible for implementing and enforcing federal laws.

What are the four main functions of the bureaucracy?

Implementation, rulemaking, enforcement, and expertise.

What does implementation mean in the bureaucracy?

Carrying out laws passed by Congress.

What is rulemaking?

When agencies create regulations explaining how laws operate.

Where are federal regulations officially published?

Federal Register.

What does enforcement mean in the bureaucracy?

Ensuring compliance with laws and regulations.

Why does the federal bureaucracy exist?

Modern government problems require specialized knowledge and expertise.

What constitutional article supports the bureaucracy?

Article II of the Constitution.

What is the president's appointment power?

The president appoints leaders of federal agencies.

What is the Take Care Clause?

The president must ensure laws are faithfully executed.

What is congressional delegation?

Congress giving agencies authority to implement laws.

What are cabinet departments?

Major executive agencies that advise the president.

Give an example of a cabinet department.

Department of Defense.

What are independent agencies?

Specialized agencies that operate outside the cabinet.

Give an example of an independent agency.

NASA.

What are regulatory commissions?

Agencies that regulate industries and markets.

Give an example of a regulatory commission.

Federal Communications Commission (FCC).

What are government corporations?

Government organizations providing public services.

Give an example of a government corporation.

United States Postal Service (USPS).

What was the Spoils System?

Giving government jobs to political supporters.

What were problems with the Spoils System?

Corruption and inefficiency.

What law reformed the Spoils System?

Pendleton Civil Service Reform Act.

What did the Pendleton Act create?

Merit-based hiring and civil service exams.

What two events caused major bureaucratic expansion?

The New Deal and post-World War II programs.

What does the Office of Management and Budget (OMB) do?

Sets agency budget guidelines and reviews proposals for the president.

What does the Congressional Budget Office (CBO) do?

Provides independent analysis and estimates the cost of legislation.

How can the executive branch oversee the bureaucracy?

Appointments, budget control, and agency reorganization.

How can Congress oversee the bureaucracy?

Hearings, investigations, and control of funding.

How can the judiciary oversee the bureaucracy?

Courts review laws and hear lawsuits against agencies.

What is economic policy?

Government actions used to regulate and manage the national economy.

What are the goals of economic policy?

Stable markets, economic growth, business development, and consumer protection.

What is laissez-faire economics?

An economic theory supporting minimal government involvement in markets.

Who developed laissez-faire economics?

Adam Smith.

What book explains laissez-faire economics?

The Wealth of Nations.

What is the Invisible Hand?

The idea that free markets regulate themselves.

What is Keynesian economics?

The idea that government spending can stimulate the economy during recessions.

What is another name for Keynesian economics?

Demand-side economics.

Who developed Keynesian economics?

John Maynard Keynes.

What is supply-side economics?

Economic theory that lowering taxes encourages business investment.

Which president is associated with supply-side economics?

Ronald Reagan.

What policies are common in supply-side economics?

Tax cuts, deregulation, and reduced government spending.

What is monetary policy?

Control of the money supply and interest rates.

Who controls monetary policy in the United States?

The Federal Reserve System.

What law created the Federal Reserve?

Federal Reserve Act.

What is the reserve rate?

The amount of money banks must keep instead of lending.

What is an interest rate?

The cost of borrowing money.

What are open market operations?

The buying and selling of government securities by the Federal Reserve.

What is an externality?

A cost or effect of economic activity imposed on society.

Give examples of externalities.

Air pollution and water contamination.

What book helped start the environmental movement?

Silent Spring.

Who wrote Silent Spring?

Rachel Carson.

What agency regulates environmental policy?

Environmental Protection Agency (EPA).

What are two major environmental laws?

Clean Air Act and Clean Water Act.

What is public policy?

Government actions designed to solve societal problems.

Who can create public policy?

Legislatures, executives, courts, and bureaucratic agencies.

What is agenda setting?

Identifying a problem that government should address.

What is policy formulation?

Developing solutions to public problems.

What is policy adoption?

Government officially choosing a policy.

What is policy implementation?

Government agencies carrying out a policy.

What is public finance?

How government raises and spends money.

What are the five main sources of Texas revenue?

Sales tax, oil and natural gas taxes, motor fuels tax, franchise tax, and property tax.

What is the Texas sales tax rate?

6.25% state tax plus up to 2% local tax.

What is the motor fuels tax?

About 20 cents per gallon of gasoline.

What is a regressive tax?

A tax where lower-income people pay a higher percentage of income.

Give an example of a regressive tax.

Sales tax.

What is a progressive tax?

A tax where higher-income people pay a larger percentage of income.

Give an example of a progressive tax.

Income tax.

What other revenue sources does Texas have besides taxes?

Federal grants, licensing fees, fines, and the state lottery.

What are earmarked funds?

Money dedicated to specific government programs.

What is the Permanent School Fund?

A fund that supports public education.

What is the State Highway Fund?

A fund for highway construction and maintenance.

What is the Economic Stabilization Fund?

The Rainy Day Fund used for emergencies.

What is the Permanent University Fund?

A fund supporting the UT and Texas A&M systems.

What is a balanced budget requirement in Texas?

The state cannot spend more than it collects in revenue.

What is the appropriations limit?

State spending must be tied to economic growth.

What is the welfare spending limit?

Welfare spending cannot exceed 1% of the budget.

What is the debt limit in Texas?

State debt cannot exceed 5% of revenue.