AP Government and Politics: Chapter 14 Political Ideology and Policy

Patient Protection and Affordable Care Act

An expansion of medicaid, most of employers must provide health insurance, have insurance or face surtax, prevents rejection based on pre-existing condition. Also referred to as "Obamacare", signed into law in 2010.

agenda

a list of potential policy ideas, bills, or plans to improve society

bonds

Contract to repay borrowed money and interest on the borrowed money at regular future intervals

discount rate

Interest levels determined by the Federal Reserve that affects the consumer's ability to borrow money. Fluctuating the rates is a tool to combat inflation.

entitlements

A guarantee of access to benefits based on established rights or by legislation. Typically, entitlements are laws based on concepts of principle ("rights") which are themselves based in concepts of social equality or enfranchisement.

Federal Reserve Board

A seven-member board that sets member banks reserve requirements, controls the discount rate, and makes other economic decisions.

fiscal year

A 12-month period, October through September, for planning the federal budget

flat tax

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

inflation

rise in the general price level (and decrease in dollar value) owing to an increase in the volume of money and credit in relation to available goods

Internal Revenue Service (IRS)

A government agency that prescribes the rules and regulations that govern the collection of tax revenues in the United States

mandatory spending

Federal spending required by law that continues without the need for annual approvals by Congress.

Medicaid

The United States health program for certain people and families with low incomes and resources. Jointly funded by the state and federal governments, and is managed by the states. Medicaid is the largest source of funding for medical and health-related services for people with limited income in the United States

Medicare

A national social insurance program, administered by the U.S. federal government since 1965, that guarantees access to health insurance for Americans ages 65 and older and younger people with disabilities.

monetary policy

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

North American Free Trade Agreement (NAFTA)

Agreements signed by the US, Canada, and Mexico in 1992 to reform the largest free trade zone in the world

progressive tax

A tax graduated so that people with higher incomes pay a larger fraction of their income than people with lower incomes

16th Amendment

Amendment to the United States Constitution (1913) gave Congress the power to tax income.

Social Security Act (1935)

Social insurance that provides economic assistance to persons faced with unemployment, disability, or old age. It is financed by taxes on employers and employees.

trade balance

An imbalance in international trade in which the value of imports exceeds the value of exports

fiscal policy

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

Globalization

Actions or processes that involve the entire world and result in making something worldwide in scope.

means test

an income qualification program that determines whether one is eligible for benefits under government programs reserved for lower-income groups

reserve requirement

the percentage of deposits that banking institutions must hold in reserve

social welfare

A nation's system of programs, benefits, and services that help people meet those social, economic, educational, and health needs that are fundamental to the maintenance of society.

supply-side economics

An economic philosophy that holds the sharply cutting taxes will increase the incentive people have to work, save, and invest. Greater investments will lead to more jobs, a more productive economy, and more tax revenues for the government.