Semester 1 Exam (Chapter 1-3, Economy, The Crossing, American Republic, American Exceptionalism) Flashcards
1
Q
Religiosity (American Exceptionalism)
A
Utopian Aspirations, Social Activism, Self-government
2
Q
Industriousness (American Exceptionalism)
A
Hard work, Getting ahead Self-reliance
3
Q
Community Life (American Exceptionalism)
A
Neighbourliness, Civic Engagement, Social Trust
4
Q
Egalitarianism (American Exceptionalism)
A
No aristocracy, Identification with the Middle Class, Equality of human dignity
5
Q
What was the main cause for the “birth of America”?
A
Widespread opposition to the British government, class society, and the opposition to the theory that democracy, aristocracy, and monarchy.
6
Q
What are the 2 parliamentary bodies that create and pass legislation?
A
Congress, split into:
House of Reps. (435)
Senate (100)
7
Q
Who is the head of state that signs the legislation into law?
A
President
8
Q
How is the House of Reps. elected?
A
Elected every 2 years through representation by population.
9
Q
What is the British theory of balance?
A
The balance between:
Democracy (House of Commons)
Aristocracy (Senate)
Monarchy (Governor-General)
10
Q
Roles of the President
A
Has the combined power of the PM, Governor-General, and Commander in Chief.
The President can appoint his cabinet and the Supreme court, with the support of Congress.
They cannot declare war without the support of Congress.
11
Q
Roles of the Senate
A
“Second sober thought” that takes a view on subjects best for the country.
Has 6-year terms and has equal representation by state (2 per state).
The casting vote (tiebreaker) is on the Vice President
12
Q
What is a Veto?
A
“Italian guy who always says no”
Veto gives the President the power to override a bill.
This can be overwritten by a 2/3 majority vote in Congress.
13
Q
How does a Bill become a Law?
A
Starting in the House or Senate:
- Congress/ Senatore introduces a bill
- Referred to a committee/sub-committee
- If the bill is passed, it’s marked up. If not, it’s tabled
- Marked-up bill is put on the House/Senate calendar
- Floor read and voted on.
- Bill is voted by the House/Senate and becomes engrossed
- The engrossed bill is voted by the Conference Committee and becomes enrolled.
- President signs/vetos the enrolled bill.
14
Q
The keys to making the American system work
A
Bipartisanship and compromise
15
Q
What is a Conference Committee?
A
A temporary committee formed to reconcile differences with the House and Senate bills.
16
Q
How are Members of Congress elected?
A
Every 2 years, members are elected within congressional districts.
17
Q
How are Senators elected?
A
Every 6 years, 1/3 of the Senate goes up for election.
18
Q
How is the President elected?
A
The President is elected through the Electoral College, rather than the popular vote
19
Q
Equal Representation vs. Representation by Population
A
Equal Rep: All states have equal seats (Senate)
Rep. by Pop: Number of seats is determined by the population of a state (HoR)
20
Q
How does the Electoral College function?
A
Each state has a number of electoral college votes equal to its congressional representation.
Electors are chosen by states to vote for President and VP.
The candidate who wins the popular vote wins all electoral college votes in that state.
21
Q
Congressional Representation
A
Members of Congress + Senators
22
Q
Which 2 states don’t follow the basis of the popular vote on election day?
A
Maine and Nebraska
23
Q
Why was the electoral college system started?
A
Cross-country campaigns weren’t practical.
24
Q
When and why was the electoral college system criticized?
A
This system was criticized in 1968 because Richard Nixon won over Hubert Humphrey by a landslide in electoral votes but barely won in the popular vote.
25
What does the American Republic essentially boil down to, and how is it different from a "pure democracy"?
The Republic ensures that people receive unalienable rights.
This differs from a pure democracy, where the majority can technically vote to take away the rights of minorities.
26
3 Branches of the American Government
Legislative: Congress
Executive: President, cabinet, gov't agencies
Judicial: Supreme Court, District Court, Court of Appeals
27
Checks and balances between the Legislative and Executive Branch
Congress needs to approve presidential nominations, has "the power of the purse", can override vetos, impeach the president, and remove them from office.
President can veto legislation
28
Checks and balances between the Legislative and Judicial Branch
Congress can impeach judges and remove them from office, Senate confirms presidential nominations.
The court can declare laws unconstitutional.
29
Checks and balances between the Executive and Judicial Branch
President nominates judges.
The court can declare presidential acts unconstitutional
30
What caused Europe to experience economic and cultural expansion late in the Middle Age?
Asian spices travelled to the Mediterranean.
This caused the development of banking systems, commercial, and political power.
31
What were 3 crucial inventions to America?
Gunpowder: Revolutionized warfare.
Compass: Allowed exploration
Printing with movable type: Allowed faster spreading knowledge.
32
Constantinople
Captured by Ottoman Turks in 1453, as it was crucial to the overland trade route to Asia.
Islamic rule forbid the use of their trade routes, forcing them to find alt. methods.
33
What country was the first to dominate the Atlantic Trade?
Portugal, which brought slaves from West Africa to work in sugar plants in Madeira and the Azores.
34
What did Christopher Columbus propose to European rulers?
Columbus suggested avoiding the African route and instead sail to India, which was ignored.
35
What happened with Columbus' not-so-great expedition?
Columbus convinced Spanish monarchs, Ferdinand and Isabella, to finance his fleet of 3 ships.
After sailing out in August 1492, he arrived in the Bahamas in October, believing it was China.
He argued that the Natives could be slaves, even though this was a clear failure.
Spain stopped supporting Columbus, but Columbus said "screw them" and continued searching.
36
What was the Treaty of Tordesillas?
The treaty was introduced by Pope Alexander VI, drawing a line from pole to pole.
Spain got most of the Americas, while Portugal got most of the East.
37
What was the impact of the Conquistadors on the Caribbeans?
These Spanish adventurers occupied the Caribbean in the early 16th century looking for riches.
They killed or enslaved the Aboriginals.
A priest, Bartolome, argued that the Spanish should convert Natives to Christianity, which was opposed.
38
What was the impact of the Conquistadors on Mexico?
In 1519, Hernan Cortes led 500 soldiers into Mexico, ruled by warlike Aztecs.
They seized the Tenochtitlan ruler Montezuma by allying with Aztec enemies and bringing smallpox with them.
Within 2 years, Mexico City was established and silver mines were made in Mexico and Peru.
39
New Mexico
In 1598, an expedition north of Mexico was sent to find gold and silver and spread Christianity.
Santa Fe became the capital of New Mexico in 1609.
Immigration rates were low since the Spanish remained small.
40
13 Colonies
New England Colonies: Rhode Island, Massachusetts, Connecticut, New Hampshire.
Middle Colonies: New Jersey, Pennsylvania, Delaware, New York.
Southern Colonies: North Carolina, South Carolina, Georgia, Virginia
41
How was North Carolina established?
ROYAL COLONY
In 1663, King Charles II created a colony between Virginia and Florida called Carolina after his Latin name Carolus.
Virginians settled here making small farms and large tobacco plants.
42
How was South Carolina established?
ROYAL COLONY
English settlers from overpopulated Barbados founded South Carolina.
They brought over slaves that made up almost half of its population by the end of the 17th century.
43
How was Georgia established?
ROYAL COLONY
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44
How was Virginia established?
ROYAL COLONY
In 1607, the Virginia Company explored the cost of Virginia in hopes of profiting from gold and silver.
John Smith created Jamestown on the shore of Chesapeake Bay, and the Algonquin ppl welcomed and supported them at first.
This alliance was short-lived as after Smith left, English started stealing food and Powhatan cut off their assistance.
Peace was temporarily restored when Pocahontas and John Rolfe got married.
After Pocahontas' deaths, however, English demanded more land, causing conflict.
Algonquin attacks in 1622 and 44 killed hundreds of English, and English disease and warfare almost wiped out the Algonquin.
By 1670, English outnumber Algonquin, and tobacco began being grown for profit.
45
How was Maryland established?
PROPRIETARY COLONY
In 1632, King Charles I granted 4 million hectares of land on the Chesapeake Bay to William Calvert, which became a proprietary colony.
He encouraged discriminated Catholics to settle in the colony.
This colony was named after the King's wife, Henrietta Maria.
46
How was New Jersey established?
PROPRIETARY COLONY
After the founding of New York, a portion along the Delaware River separated to form New Jersey.
47
How was Pennsylvania established?
PROPRIETARY COLONY
In 1681, King Charles II granted William Penn (son of his friends he owed a debt to) a large tract of land west of the Delaware River.
Penn opened Pennsylvania as a refuge to the Quaker sect, who were being persecuted in English for not paying taxes.
During early development, Penn drafted a constitution protecting religious rights.
He also drew plans for Philadelphia, meaning "city of brotherly love" in Greek.
This colony attracted English and German farmers and its agriculture flourished.
48
How was Delaware established?
PROPRIETARY COLONY
In 1704, Penn approved the establishment of a second colony along the Delaware River.
49
How was New York established?
ROYAL COLONY
In the early 17th century, New Amsterdam was established along the Hudson River.
This was created by the Netherlands as a fur trading colony.
Later on, in the 17th century, England and Netherlands competed for trade control.
In 1664, a small English fleet captured New Amsterdam without firing a shot.
King Charles II granted his brother, the Duke of York, the colony and it was named New York.
50
How was Rhode Island established?
PURITAN REFUGE
A Puritan minister, Roger Williams, was banished for believing in the separation of the church and state, leading to the establishment of Providence.
Later joined by Anne Hutchinson, Williams was granted a royal charter for a new colony, along with other charters allowing complete religious freedom.
51
How was Massachusetts established?
ROYAL COLONY
In the mid 16th century and early 17th century, England underwent Protestant reformation and Puritans wanted to purify the English church.
In 1620, Pilgrims led by William Bradford sailed to America on the Mayflower and established Plymouth on Massachusetts Bay.
Half of the settlers died due to disease, malnutrition and harsh winters, so they allied with the Wampanoag.
In 1691, Plymouth joined with the Massachusetts Bay and in 1629, Puritans established the Massachusetts Bay Company and planned a large emigration from England.
This immigration immigrated 20 000 Puritans over 15 years.
John Winthrop founded Boston in 1630 and extended it by 100 kilometres within 10 years.
Winthrop only allowed male church member head of households to vote for General Court delegates, becoming a model for future political developments.
Due to Massachusetts' economic success, there was a higher demand for land making conflict between colonists and Algonquin.
After the English Civil War, Puritans seized English power and had no reason to migrate to America, so Massachusetts diversified into shipbuilding, fishing, overseas trade, and agriculture.
52
How was Connecticut established?
PURITAN REFUGE
Puritan refugees crossed the Atlantic hoping to flee persecution and find a "godly commonwealth".
Once in control, they became hostile to any challengers and banished outspoken dissenters.
In 1636, Thomas Hooker didn't want the power to be limited to church members, so his group went west to the Connecticut River and founded a new colony.
53
How was New Hampshire established?
PROPRIETARY COLONY
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54
What was the lost colony and how was it founded?
Roanoke was founded by John White in 1587, who wasn't assisted by the Natives.
White went to England for help, but to no avail. When he returned in 1590, the colony was deserted with about 100 colonists remaining.
Some say the Native's killed them, some say they thought they were abandoned and were adopted by local Aboriginals.
55
What was King Philip's War?
In the 1670s, Pokanoket leader Metacomet (King Philip in English) convinced Algonquin groups to confront colonists.
In 1675, an alliance of New England and New York attacked Metacomet.
Initially, colonists suffered many losses, but soon the colonists gained the upper hand.
Iroquois joined the colonists to dominate the fur trade.
In the summer of 1676, Metacomet's army was destroyed.
56
How many deaths were there in King Philip's war?
6000 total, 4000 of which Algonquin.
57
What is a Royal Colony and which of the 13 are Royal?
A Royal colony was owned by the British King.
The Royal colonies are North and South Carolina, Georgia, Virginia, Massachusetts, and New York.
58
What is a Proprietary Colony and which of the 13 are Proprietary?
A Proprietary colony was created by land grants given to people by the British.
The Proprietary colonies are Maryland, Pennsylvania, Delaware, New Hampshire, and New Jersey
59
What is a Puritan Refugee and which of the 13 are Refugees?
A Puritan Refugee was created to house Puritans fleeing from religious persecution in England.
The Puritan Refugees are Connecticut and Rhode Island
60
Who were the Puritans?
They were a group of Protestants in England in the 16th and 17th centuries who called for strict religious discipline as well as the simplification of the ceremonies of the Church of England.
61
Who is a Pilgrim?
One of the English Puritans who sailed to North America on the Mayflower and founded Plymouth, Massachusetts in 1620.
62
What is the Mayflower Compact?
In September 1620, Pilgrims from Plymouth, England sailed on the Mayflower to establish a colony in America.
While onboard, the male members composed the Mayflower Compact, which they hoped would preserve their freedom in the new colony.
The Compact emphasized preserving order and the philosophy of justice and equality in law.
Although the Compact was considered the "first constitution", it had no actual rules of government, but instead established the idea that the government is a contract between the governed and the governors.
63
What was Bacon's Rebellion?
In Virginia, 1670s, colonists led by Nathaniel Bacon wanted fresh land and began a war against the Susquehannock.
In the Spring of 1676, Bacon led hundreds to revolt against Berkeley, a governor who ordered Bacon to end the raids.
They also planned to remove all Natives and end wealthy control over the colony, which "fizzled" when Bacon died of the disease.
64
What was the Salem Witch Scare?
In late 1691, several young women were accused of witchcraft, and throughout 1692, 20 were convicted and executed before the government halted the Trials.
65
What was King William's War?
Near the end of the 17th century, France and Egland fought for control over NA.
English and Iroquois attacked Montreal, New York and New England from 1689-90 until there was a 5-year peace with the Treaty of Ryswick in 1697.
In 1701, the English took control of all proprietary colonies, meaning each had a royal governor.
66
What 3 themes of the American story became clear by the end of the 17th century?
1. Impact of contact between existing societies and new arrivals (Colonists and Aboriginals)
2. Importance of dissent (Opposing opinions with the British)
3. Each colony had its own character.
67
"The Crossing" Brief plot summary
In the winter of 1776, Americans were overrun by the British in Manhattan and slaughter by Hessians (German troops)
The Continentals needed to cross the Delaware River between New Jersey and Pennsylvania to put distance between them and the British.
After arriving in Pennsylvania and realizing that 10% of their men remained, with only 18 pieces of artillery, Washington had Hamilton write a letter to Congress pleading for funds.
Washington attacks the Hessians on the other side of the shore in Trenton on Christmas Eve and divides into 2 columns, Washington and Green taking Pennington Road, Sullivan taking the River Road.
They win. yay. and Colonel Rall (of the Hessians) dies.
68
Characters in the Crossing
Washington: Commander-in-chief, became the first President on April 30, 1780.
Hamilton: Wrote the letter, became the first secretary of the treasury appointed by Washington.
John Glover: Colonel and Fisherman, refurbished his fishing vessels after returning to Marblehead.
Mercer: General, Washington's closest friend.
Knox: General, became secretary of war during the administration of Washington.
Johann Rall: Hessian military commander at Trenton, buried in the graveyard of Presby Terian Church. His tombstone reads "Here lies Colonel Rall. For Him, all is over"
69
What caused the American colonies to expand during the first half of the 18th century?
Immigration of German Protestant refugees, African slaves, Scots.
Indentured servants also started settling in America rather than returning to Europe.
70
What was the Triangle Trade?
The Triangle trade illustrated the trade of Rum and goods to Africa, Slaves to America, and Sugar to New England.
71
What is the theory of Mercantilism?
The wealth of a nation was based on the value of gold and silver it earned from exports. The success of this system depended on government regulation of economic activity.
72
What was the Great Awakening?
In the 1730s, a religious revival spread through the colonies.
Jonathan Edwards, minister of Northampton, Massachusetts, preached to the youth to "have their hearts touched".
The arrival of George Whitefield in 1738 further expanded the awakening, preaching to crowds of up to 30 000.
This led to an increase in church membership amongst the young population.
73
What was Queen Anne's War (War of the Spanish Succession)?
In the winter of 1704, Abenakis and the French attacked Deerfield, Massachusetts.
50 were killed and more than 100 were captured.
The French made a fortress, Louisbourg, in the now Cape Breton Island.
74
What was King George's War (War of the Austrian Succession)?
In 1745, colonial troops from Massachusetts and the British captured Louisbourg.
In 1748, Louisbourg was returned to France under the Treaty of Aix-la-Chappelle.
75
Who was the Native's spiritual leader?
Neolin (Delaware Prophet)
76
What was the Revenue Act?
(Sugar Act 1764) The British reduced taxes on molasses.
77
What was the Stamp Act?
Required all legal documents to be produced on paper with a stamp indicating a tax had been paid.
78
Who were the Sons of Liberty?
They were colonial lawyers and merchants opposed to the Stamp Act, who started attacking stamp distributors, causing most distributors to quit their jobs, frustrating British tax collection.
79
"No taxation without Representation"
A political slogan used against Britain, as colonists couldn't elect members of Parliament but had to pay taxes.
80
What were the Townshend Duties?
Introduced after revoking the Stamp Act. These duties introduced tariffs on imported goods, which was opposed against Americans.
These Duties were eventually repealed in 1770.
81
What was the Boston Tea Party?
In 1773, citizens disguised as Mohawk Indians boarded a ship and dumped tea cargo into the harbour.
82
What were the Coercive Acts?
As a response to the Boston Tea Party, the British closed the Boston port until the debt from destroyed cargo was paid, and revoked self-government in Massachusetts, not allowing Assembly to appoint officials and forbid town meetings.
This was an attempt to restore authority in Massachusetts.
83
What was the Declaratory Act?
The same day after repealing the Stamp Act, this Act was passed.
It declared that the British Parliament had the same powers to make laws and approve taxes of the colonies as it did for Britain.
84
What was the Boston Massacre?
In 1770, the presence of British soldiers in Boston led to violence.
On March 5, 1770, young men taunted a sentry who called for reinforcements.
This company, led by Captain Thomas Preston, starting shooting on the crowd.
85
What was the Quebec Act?
Passed in 1774, the British expanded the boundaries of Quebec to include north of Ohio River and protected Roman Catholicism and French Civil Law.
86
What was the First Continental Congress?
In a response to the Coercive Acts, delegates from the 13 colonies met in Philadelphia in September 1774.
They still favoured increased economic sanctions against the British, rather than independence.
They formed the foundation of self-government and political autonomy.
87
What was the Battle of Lexington and Concord?
On April 18, 1775, General Thomas Gage sent 700 redcoats (British) to Concord to seize weapons.
When the British passed Lexington, they found minutemen blocking them, who were appropriately shot to death.
After destroying a supply of gunpowder in Concord and alarming minutemen, the British couldn't escape the city.
"The skirmishes at Lexington and Concord on April 19, 1775, had ignited a revolution"
88
What was the Second Continental Congress?
Delegates met in Philadelphia in May 1775, where they needed to aid Massachusetts and strengthen colony defences.
They seemed peaceful resolution and sent petitions, which were ignored.
89
What was the Olive Branch Petition?
A final appeal sent by Congress, which caused Britain to place further restrictions on trade with colonies.
90
What was the Battle of Bunker Kill?
British charged Americans 3 times, the first 2 failing. Americans ran out of ammo during the final attack and were ran out of the hill.
While the British won, 1000 died. This victory was short-lived as Washington arrived and the British abandoned Boston.
91
The Declaration of Independence
In 1776, colony leaders requested a formal declaration of Independence.
On July 2, 1776, Congress voted and after revisions to Jefferson's document, it was approved on July 4, 1776.
92
What was the Enlightenment?
A philosophical movement that emphasized the importance of human reason and individual rights. This "social contract" was developed by John Locke.
93
How was the Revolutionary War also a Civil War?
Patriots saw independence as the only solution to oppressive British policies.
Loyalists opposed this idea.
94
Who were the Patriots?
While some wealthy, some poor, many sought wealth and independence.
95
Who were the Loyalists?
Consisting of about 1/5 of the population, they remained loyal to the British Empire during the revolution. They were called Tories by the Patriots.
Most Loyalists were poor farms and artisans.
96
What was the Continental Army?
An army consisting of poor and unmarried soldiers given to Washington.
Almost 3000 soldiers died in Valley Forge near Philadelphia due to disease, exposure, and malnutrition.
97
Military Campaign in Quebec
In 1774, 2 American armies headed North. They split up, one going from upstate New York, the other going through Massachusetts.
After the 2 met up, on New Year's Eve, the British killed Montgomery (New York army leader), causing the remaining army to retreat.
98
American vs. British strategy during the war
American: Harass the British while avoiding defeat
British: Blockade American ports, take in Loyalists, and divide the northern and southern colonies.
99
How did the British strategy fail?
(See the Crossing Summary)
100
What brought an end to the British strategy?
Because of Howe's failure to advance north of New York, General Jogn Burgoyne surrendered at Saratoga on October 17, 1777.
101
Why was the American victory at Saratoga important?
The American victory at Saratoga persuaded France to enter the war on the American side.
102
What was the Battle of Yorktown?
In 1781, Washington got word that the French were arriving off the Virginia Coast. He then besieged the British army led by General Cornwallis and they surrendered on October 19, 1781.
103
What was the Revolutionary War's impact on Europe and Canada?
In Europe, the hostility between Britain and France was deepened. Britain agreed to meet most of the Americans' territorial demands to avoid conflict.
In Canada, the influx of Loyalists would affect the way Canada would develop, particularly in what would become Ontario.
104
What were the Articles of Confederation?
The Articles created a weak central government and left power within individual states.
105
What responsibilities did the Articles of Confederation assign the Congress?
Control of foreign affairs, coinage, postal services, relations with Natives, and settling of disputes between taxes.
BUT they didn't have the power TO tax.
106
What negatives came with a weak government?
It was unable to pay expenses, including payments to the Continental Army, citizens refused to serve in the army, officers feared they wouldn't get pensions, etc.
107
What dispute was revealed through the approval of the Articles of Confederation?
Western states, like Maryland, wanted Congress to administer the land.
The Eastern States, like Virginia, viewed the land as their own.
These divisions caused the Civil War.
108
What was the Treaty of Paris?
In 1783, the British and Americans had an agreement without the French approval.
This agreement recognized American independence and promised the British troops to be withdrawn.
It also gave America the land of southern Canada and north Spanish Florida.
In exchange, the American government promised to stop seizures of Loyalist property and compensate for their losses.
109
Where did Loyalists go after the Revolutionary War?
Sine wealthier Loyalists returned to Britain or settled in the West Indies. Other poor farms and labourers accepted land offers in other British territories in NA.
110
What prompted the separation of upper St. Lawrence Valley?
After the English arrived in the area, it was split up into Upper and Lower Canada in 1791.
111
What is the Constitution?
A document formed by the ideas of liberty expressed in the Declaration of Independence. It gave the USA its own unique identity.
112
What caused inflation?
Because the Continental Congress issued more than $190 million in "Continental dollars", combined with the shortage of imports, it took 146 Continental dollars to buy one Spanish dollar by 1781.
113
How did the government respond to its debt with France and Spain?
Through raising taxes.
114
What was Shays's Rebellion?
The increase in taxes was opposed by Massachusetts farmers since they were already in debt.
The farmers organized themselves into bands and attacked courthouses and freed prisoners.
115
What was the Virginia Plan?
Proposed by James Madison, it planned to divide the central government into 3 branches: Legislative, Executive, and Judicial.
This had much opposition but was supported by Virginia and Pennsylvania.
116
What was the New Jersey Plan?
Created as a compromise for the Virginia Plan, there would be a representation by population in the HoR, but equal representation in the Senate.
117
What was the three-fifths rule?
A rule that states that slaves were property rather than humans.
118
Who were the Federalists?
Supporters of the new constitution.
119
What did Hamilton, Madison, and John Jay argue in the Federalist Papers?
They argued that a republic would protect individual rights by preventing one faction from dominating the government.
120
Who were the Anti-Federalists?
They opposed the new constitution. They feared that the new central government would undermine the autonomy of states.
121
What was the procedure for approving the Constitution?
9/13 states needed to approve the constitution for ratification. Voting in each state would be held by a special meeting of delegates.
Delaware ratified the Constitution in December 1787, becoming "the first state".
122
What was the Bill of Rights?
This limits the powers of the federal government over individuals and states.
After the 12 amendments became 10 in 1791, these became the Bill of Rights.
The Bill also formed the basis for the separation of church and state.
123
What was the First Amendment?
Freedom of religion, speech, press, assembly, and to petition the government.
124
What was the goal of the Constitution?
"form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common Defence, promote the general Welfare, and secure the Blessing of Liberty"
125
Who was the Democratic political strategist for Bill Clinton? What slogan did he come up with?
James Carville came up with the slogan "It's the Economy, Stupid!".
126
Mandatory vs. Discretionary Spending
Mandatory: Spending for entitlement programs and payments to other people, businesses, and state government. Ex. Prescription drugs, social security, pensions, medicare.
Discretionary: Spending on optional/non-essentials. Ex. Social services, jobs, national defence, foreign aid, education.
127
How did America's spending evolve over the years?
Entitlements to citizens have grown, mainly because Americans have a longer life expectancy now than they did in the past.
128
What are entitlement programs?
Government benefits paid out to eligible citizens, such as Medicare, Medicaid, and Social Security.
129
What has caused the projected entitlement spending to surpass the federal budget?
Entitlement spending will continue to grow, and the federal government continues to borrow more money in an attempt to sustain its spending, which ironically will cause more debt.
130
How can mandatory spending be lowered?
Reduce birth rates, increase age eligibility pensions.
131
How did Bush, Obama, and Trump contribute to the National debt?
Bush: Focused on domestic issues like education, tax cuts, and reducing regulatory burdens. This raised the debt considerably.
Obama: Obamacare was projected to cost trillions of dollars, but Democrats claimed it would eventually reduce debt.
Trump: GDP declined in 205, increased from 2016-17, then decreased in 2018. The national debt was brought to $27.5 trillion.
132
What is a mortgage and defaulting?
Mortgages are made for people who want to buy a house and borrow money from a bank to get "ownership" of the house which is paid back each month, including interest.
Defaulting occurs when the borrower stops paying the mortgage, and the mortgage holder gets ownership of the house. (Banks also sometimes sells your mortgage to other banks)
133
What was the Mortgage/Financial Crisis?
Investors started investing in the US housing market, in hopes of "low risk, high return" from the interest of the mortgages.
A mortgage-backed security system was made, where banks sell mortgages to investment firms, who accumulate thousands of mortgages and sell shares of those to investors.
This was a win-win situation for investors, since they would keep getting mortgage payments, or can sell the house if the homeowner defaults. (House prices continued to rise)
Investors wanted more of these mortgages, so lenders lowered their standards, giving loans to people with low income and poor credit.
People couldn't pay for the rising price of their homes, so more markets were on the market, but no one would buy them, so prices dropped.
134
What is a recession?
A decline in economic activity. (One recession was caused by the mortgage crisis)
135
What is a government bailout?
In the context of the mortgage crisis, investment firms started going broke because of homeowners defaulting. The government then started borrowing (about $800 billion twice in 2 years) to buy the mortgages.
