GOVT Unit 16

bottom-up implementation: a strategy in which the federal government allows local areas some flexibility to meet their specific challenges and needs in implementing policy

Congressional Budget Office: the congressional office that scores the spending or revenue impact of all proposed legislation to assess its net effect on the budget

debt: the total amount the government owes across all years

deficit: the annual amount by which expenditures are greater than revenues

discretionary spending: government spending that Congress must pass legislation to authorize each year

distributive policy: a policy that collect payments or resources broadly but concentrates direct benefits on relatively few

entitlement: a program that guarantees benefits to members of a specific group or segment of the population

excise taxes: taxes applied to specific goods or services as a source of revenue

free-market economics: a school of thought that believes the forces of supply and demand, working without any government intervention, are the most effective way for markets to operate

Keynesian economics: an economic policy based on the idea that economic growth is closely tied to the ability of individuals to consume goods

laissez-faire: an economic policy that assumes the key to economic growth and development is for the government to allow private markets to operate efficiently without interference

libertarians: people who believe that government almost always operates less efficiently than the private sector and that its actions should be kept to a minimum

mandatory spending: government spending earmarked for entitlement programs guaranteeing support to those who meet certain qualifications

Medicaid: a health insurance program for low-income citizens

Medicare: an entitlement health insurance program for older people and retirees who no longer get health insurance through their work

policy advocates: people who actively work to propose or maintain public policy

policy analysts: people who identify all possible choices available to a decision maker and assess the potential impact of each

progressive tax: a tax that tends to increase the effective tax rate as the wealth or income of the tax payer increases

public policy: the broad strategy government uses to do its job; the relatively stable set of purposive governmental behaviors that address matters of concern to some part of society

recession: a temporary contraction of the economy in which there is no economic growth for two consecutive quarters

redistributive policy: a policy in which costs are born by a relatively small number of groups or individuals, but benefits are expected to be enjoyed by a different group in society

regressive tax: a tax applied at a lower overall rate as individuals’ income rises

regulatory policy: a policy that regulates companies and organizations in a way that protects the public

safety net: a way to provide for members of society experiencing economic hardship

Social Security: a social welfare policy for people who no longer receive an income from employment

supply-side economics: an economic policy that assumes economic growth is largely a function of a country’s productive capacity

top-down implementation: a strategy in which the federal government dictates the specifics of public policy and each state implements it the same exact way