economic policy Flashcards
What issues to democrats generally focus on?
Employment
The interplay of actors and institutions that leads to the adoption, modification, or rejection of public policy proposals
Policy process
What economic issues do republicans tend to focus on?
Inflation
What percentage of federal revenue comes from individual taxes?
43%
Progressive taxes
The more you make, the more is available to take
An example of progressive taxes
Individual income taxes
Regressive taxes
The more a company makes, the less they’ll take
What percentage of revenue comes from payroll taxes?
42%
What percentage of revenue comes from corporate taxes
7%
What percent of the federal income comes from borrowing?
5%
What was spent by the federal government in 2009?
$3.5 trillion
Examples of direct benefit payments
Social security, Medicare, Medicaid
Who receives Medicare benefits?
Seniors
Who receives Medicaid benefits?
Those below the poverty levels
What percent of the budget is made up by mandatory spending?
56%
What percent of the budget is spent on national defense?
23%
Examples of no defense discretionary income
Grants to states, operational costs
What percent of the budget goes toward paying debts?
5% pays off interest on national debt
Federal money provided to those who qualify, spent annually without congressional review
Entitlements
Jobs beneath a person’s qualifications
Underemployment
What does supply side economics rely on?
The net gain will be more than the lost revenue on taxes
Why is Reaganomics not a supply side system?
He cut taxes, but not spending
Cuts taxes to produce business investment
Supply side
Theory where the money supply has the most influence on the economy
Monetarism
Which economic policy system makes the most use of the Fed’s power?
Monetarism
What does fiscal policy affect?
Taxing and spending
What does monetary policy affect?
Levels of interest rates and the availability of credit
Who conducts monetary policy?
The Federal Reserve
Who conducts fiscal policy?
Congress and the President
What creates majoritarian politics?
The heath of the American economy
How can taxes be raised without alienating voters?
Taxing products and high-income classes
Government manages economy by spending more in times of recession and less in prosperity
Keynesian Economics
