chapter 13 domestic policy Flashcards
Promotional
uses positive incentives to encourage behavior
Subsidies
government grants of cash or commodities
Contracting power
set conditions on companies and the government purchases goods by contract
Regulatory
rules backed by penalties to regulate conduct
Police regulation
reserved to the states to regulate health/safety/morals of citizens and enforced through civil/criminal penalties
Administrative regulation
power that seeks to minimize injuries or inconveniences to the public
Regulatory taxation
taxes designed to eliminate an activity such as alcohol or smoking
Expropriation
confiscation of property for public use
Redistributive
indirect control by altering conditions of conduct or manipulating the environment
Monetary policy
government regulates the economy by manipulation of money and credit supply
Federal Reserve System
all national banks are a member of this and borrow money from them with a fed funds rate
Fiscal policy
use of taxing/monetary/spending powers to manipulate the economy
What is the purpose of the progressive income tax system?
raise revenue and reduce disparities of wealth
Contributory programs
social programs financed by taxation/”forced savings”
Social security
workers contribute a portion of wages for benefits after retirement
Medicare
health insurance for the elderly
Unemployment insurance
helps replace lost wages
Indexing
adjusts social benefits/wages to account for increases in cost of living