Ch. 12 - Political Ideology

12.1 - 12.2 - 12.3 - 12.4

Pros + Cons of Student Loan Forgiveness

Pros: boost economy, reduce disproportionate debt on minorities, allow young people to reach life milestones

Cons: unfair to those who paid/made sacrifices, mainly benefit upper-income families, underlying cause of issue = high cost of higher education

Party Ideology

Party’s belief about role of gov and set of opinions on major issues

Party Identification

Individual’s attachment to a political party

Conservatism

Republican party: control social behavior, few regulation on businesses, less gov intervention in economy

Liberalism

Democratic party: less gov control on social behavior, more regulation of businesses and economy

Libertarianism

Very little gov regulation, minimal control over social behavior

• Still protect private property and individual liberty

Laissez Faire Economy

Government minimally intervenes in economic transition between businesses and citizens

Command and Control Economy

Government dictate much of nation’s economic activity

Mixed Economy

Individuals and businesses make economic decision

Federal and state governments regulate economic activity

Gross Domestic Product (GDP)

Measure total value of goods and services produced by economy

Economic Recession

Two consecutive quarters of negative GDP growth

Unemployment Rate

Percentage of people actively looking for work but unable to find jobs

• Underestimates reality, some have given up or are underemployed

Inflation

Rise in prices of good and services

Consumer Price Index (CPI)

Cost of fixed basket of good and services over time

Kenyesianism

Government intervenes in economy during economic downturns

Supply-Side Theory

Government cuts taxes and reduce regulations

• Allow businesses to increase production, create jobs, grow economy

Fiscal Policy

Government uses taxation and spending to lower unemployment, increase economic growth, stabilize economy

Monetary Policy

Set of economic policy tools to regulate amount of money in economy

Federal Reserve System

Board of governors, Federal Reserve Banks, member banks

• Responsible for U.S. monetary policy

Medicare

Federal Program: Provide health insurance to senior citizens and disabled people

Medicaid

Federal Program: Provide health insurance to low-income Americans

• Needs-based assistance programs

• Funded and administered by federal and state governments

Affordable Care Act (ACA)

Federal Healthcare Reform Law: Expand health insurance access, lower costs, expand Medicaid

• Employers provide health-care insurance, individual mandate (later repealed)

Public Education Debates

School-choice vouchers: use taxpayer money to pay tuition in private schools

• Yes: Competition between schools improve standards

• No: Drain public school funding

Debate over curriculum (ex. Florida’s Stop WOKE Act and Parental Rights in Education Act)