Chapter 16- Economic And Social Welfare Policymaling Flashcards
Unemployment rate
Measured by the Bureau of Labor Statistics l, the people who are looking for employment but aren’t finding any
Underemployment rate
Measured by the Bureau of Labor Statistics, the people who are not working but are looking for a job, the people who want to work but have given up their search, and the people who work part time because they can’t find a full time job
Inflation
The unfortunate rise in goods and services
Consumer price index
Key measure of inflation, the change in the cost of buying a fixed basket of goods and services
Laissez-faire
The idea that the gov’t should not get involved with our economy
Monetary policy
The gov’t can manipulate the economy this way, by having the money supply in private hands
Monetarism
The idea that holding the supply of money will improve our economy
Federal Reserve System
(Created in 1913) used to regulate the lending practices of banks and the money supply
Fiscal policy
It is determined by Congress and the president, it is the use of the federal budget through taxes, spending, and borrowing
Keynesian economic theory
Theory that states the gov’t should spend to stimulate the economy when it is down
Supply- side economics
A theory that states that in order to stimulate the economy we must raise the supply of goods, by cutting taxes.
Entitlement programs
Government programs that provide for people even though they might not need it
Means- tested programs
Government programs that provide for people that qualify/need it
Income distribution
The way the nat’l income divides its shares from poor to rich
Relative deprivation
When a person compares their self to others and claims they aren’t doing well economically
Income
The amount of money collected in a certain period of time
Poverty line
An income threshold in which people below it are considered poor, based on how much they may make
Feminization of poverty
The increasing amount of poverty for women, especially those who are not married and have children
Progressive tax
A tax that favors the poor more. Taking more money, in taxes, from the rich than they do from the poor
Proportional tax
A tax that does not favor anyone. They don’t take more or less from the rich or poor.
Regressive tax
A tax that taxes the poor people more
Earned Income Tax Credit
(EITC) a refundable federal income tax credit for low to moderate working people, even if they do not make enough to file a tax return
Transfer payments
Direct benefits given from the gov’t given to people that really need it, such as Social Security payments, food stamps, or even low-interest college loans
Social Security Act of 1935
Created Social Security program and national assistance program for poor families, a.k.a Aid families with Dependent Children
