Unit 3: Federal Budgeting, Social Security, and Consumer Debt

Fiscal

Relating to government money, especially taxes, spending, and budgeting.

Incumbent

A person currently holding a political office who is seeking to remain in that position.

Onerous

Difficult, heavy, or burdensome to carry out.

Nonpartisan

• Not connected to any political party

• Neutral and unbiased

Subprime Mortgage

• A home loan given to borrowers with poor credit

• Often with higher interest rates and a greater risk of default

Contractionary

A policy that reduces economic activity, often by raising interest rates or reducing government spending.

Bipartisan

• Supported by members of both major political parties

• Involving cooperation between Democrats and Republicans

Independent Commission

A group created to investigate or oversee something without influence from political parties or government leaders.

Municipal Governments

Local governments, such as cities, towns, or villages, responsible for services like police, fire departments, schools, and public works.

Continuing Resolutions

Temporary laws that allow the federal government to keep operating at current funding levels when Congress cannot agree on a new budget.

Bonds

• Loans made to governments or companies by investors

• The borrower agrees to repay the money with interest over time

Impasse

A situation where two sides cannot reach an agreement, causing progress to stop.

Midterm Elections

US elections held halfway through a president’s four-year term, when voters choose members of Congress and other officials.

Social Insurance / Safety Net

• Government programs that provide financial assistance or services to people in need

• Exs: Social Security, unemployment insurance, or food assistance

Stipend 

A fixed amount of money paid regularly, often to support someone while they work, study, or complete training.

Tax Ceiling

• The maximum tax rate or maximum amount of taxable income allowed under law

• Sometimes used to describe limits on how much income can be taxed for programs like Social Security

Solvency

The ability of a program, company, or government to meet its long-term financial obligations.

Privatization

When a government transfers a public service or program to private companies or individuals to run instead.

Open-Market Economies

• Economic systems where businesses and consumers are free to buy and sell goods, services, and property with limited government control

• Prices are mainly determined by supply and demand

Lines of Credit

• Pre-approved amounts of money that a person or business can borrow as needed, up to a limit, and repay over time

• Similar to having flexible access to a loan