Chapter Fourteen: Policymaking Flashcards
Laissez-faire
“to leave alone” - free market without any intervention or regulation from government
Keynesian economics
opposite of laissez-faire - deficit spending, stimulus package - spending money to stimulate the economy
Deficit vs. debt
debt is accumulated deficit over time, deficit = amount overspent in a given years
Federal income taxes
largest source of federal revenue today - progressive tax
Regressive tax
spend more the less you make
Progressive tax
spend more the more you make
Flat tax
everyone spends the same
Entitlement programs
largest amount of federal money goes to these - required by law, and are given to people meeting particular eligibility requirements - Social Security - mandatory spending
National Defense
second largest amount of federal money
National Debt
3rd largest amount (8%) of federal money
Monetary policy
fed reserve - government control of money supply and circulation (plus interest rates)
Inflation
devaluation of the dollar due to large amounts of money in circulation
Deflation
too little money is in circulation
Isolationism
philosophy that should avoid entangling alliances
Containment
policy of keeping communism from spreading beyond the countries already under its influence
Preemption
principle of attacking before being attacked - neo-cons
Joint Chiefs of Staff
military advisory board that meets with Sec of Defense and Pres to consult military strategy
Domestic policy
policy within our borders
Regulatory policy
independent regulatory agencies steer policy in a given industry - EPA
Goals of State Department
-protect national security
-provide international leadership in developing world peace
-insuring balance of power; keeping aggressive nations from overpowering weaker ones
-cooperating with other nations in solving international problems
-promoting human rights and democratic values
fostering cooperative foreign trade and globalization of trade through international organization
