US Economy Flashcards
1
Q
Mixed economy
A
Free market + government interventions
2
Q
Federal Reserve System
A
1913
Central bank
3
Q
Herbert Hoover
A
1929-1933
Republican
4
Q
Protectionism
A
Restrict international trades
5
Q
The Great Depression
A
1929-1939
6
Q
Franklin D. Roosevelt
A
1933-1945
Democrat
7
Q
Banking Act / Glass-Steagall Act
A
1933
Separate commercial banks from investments banks
8
Q
National Labor Relations Act (Wagner Act)
A
1935
Relations between unions and employers
9
Q
Social Security Act
A
1935
Social security system for unemployment, eldery and disabled
10
Q
Welfare state
A
Provides basic economic security for its citizens
11
Q
War-time economy
A
Creation of jobs
Women and minorities enter the workforce
12
Q
Bretton Woods Agreement
A
Foundation for global economic stability
13
Q
Truman doctrine
A
Provides support to countries resisting communism
14
Q
Keynesianism
A
Tax and spend
15
Q
John Maynard Keynes
A
British economist
16
Q
American way of life
A
Belonging to the middle class
17
Q
John F. Kennedy
A
1961-1963
Government-driven economic growth
18
Q
Lyndon B. Johnson
A
1963-1969
Great Society
19
Q
Great Society / liberalism of the 60s
A
Eliminate poverty and promote social and racial justice
Medicare, Medicaid, War on Poverty
20
Q
War on Poverty
A
Investments in education and health
21
Q
Medicaid
A
Healthcare for low-income Americans
22
Q
Medicare
A
Healthcare for 65+ yo Americans
23
Q
Richard Nixon
A
1969-1974
24
Q
Nixon Shock
A
1971
Ended the Bretton Woods system
25
Stagflation
Economic stagnation + inflation
26
Ronald Reagan
1981-1989
Neoliberalism
27
Supply-side economics
Economic growth by lower taxes, decreased regulation and free trade
28
Deregulation
Reducing government rules and restrictions on business
29
Bill Clinton
1993-2001
New Democrats
30
Third Way / New Democrats
Neoliberalism + classical liberalism
31
Neoliberalism
Free market, deregulation, minimal state intervention
32
North American Free Trade Agreement (NAFTA)
1994
Free trade between US, Mexico and Canada
33
George W. Bush
2001-2009
Republican
34
Great Recession
Widespread bankruptcies
35
Barack Obama
2009-2017
36
Patient Protection and Affordable Care Act
Obamacare
2010
Expand healthcare access
37
Labor force
Individuals who are employed or actively seeking work
38
Labor force participation rate
Proportion of working-age population (16+) that is working or looking for work
39
Unemployment rate
Proportion of labor force without a job but actively seeking one
40
Service-providing industries
Tertiary economy
41
Goods-providing industries
Secondary economy
42
Rust Belt
Ex-Manufacturing Belt
43
Self-employment
Workers who operate independently
44
Corporation
Business separated from its owners
45
Labor union
Formed by workers to advocate improved wages, working conditions and benefits
46
Collective bargaining
Negociation process to balance power between employees and employers
47
Taft-Hartley Act
1947
Limiting certain union activities
48
Right-to-work laws
Employees can work without being required to join a union
49
Labor income
Received from employment (wages/salaries)
50
Capital income
Assets and investments
51
Transfer payment
Financial support from the government to redistribute wealth and reduce poverty and inequalities
52
Consumerism
Well-being depends on increasing consumption
53
Conspicuous consumption
Buying luxury items to show off wealth
54
Keeping up with the Joneses
Pressure to match or surpass neighbors' possessions
55
Suburbanization
Suburbs expanding
56
Planned obsolescence
Products designed with limited lifespan to ensure repeated purchases
57
Fast fashion
Cheap, trendy clothing that quickly goes out of style
58
Market segmentation
Dividing consumers into smaller groups based on demographics to target advertising
59
Product placement
Putting products in media to subtly promote them
60
Credit card
Allows people to spend beyond their means, boosting consumption
61
Greenwashing
Misleading eco-friendly claims to confuse consumers
62
Debt trap
The person accumulated too much debt and they cannot pay back
63
Economic functions of government
- Providing legal and monetary framework
- Regulating commerce and maintaining competition
- Providing goods and services
- Redistribute wealth
- Correcting for externalities
- Stabilizing the economy
64
Private property
Exclusive control of assets by individuals or non-governmental entities
65
Trade tariffs
Taxes on imported goods to make foreign products more expensive
66
Free trade
Promotes the exchange of goods across borders
67
Antitrust legislation
Prevent monopolies and anti-competitive practicies
68
Public goods and services
Government's involvement through tax-funded goods and services, combining public and private sectors
69
Income taxes
Taxes increase with income
70
Payroll taxes
Taxes deducted from wages (funds Medicare and Social Security)
71
Progressive tax system
Income taxed in brackets, each with a different rate
72
Externalities
Unintended side effects of an economic activity that indirectly affects people (positive or negative)
73
Regulation
Rules or laws that restrict certain behaviour to protect public welfare
74
Subsidies
Financial support from the government to lower the cost of social goods and services
75
Fiscal policy
The government use of taxation and spending to influence economic activity
76
Monetary policy
Managment of money supply and interest rates
77
Bailouts
Government provides fund to failing business in time of crisis to avoid bankruptcy
78
Importation
Bringing goods and services into the country
79
Exportation
Selling domestically high value products to other countries
80
Trade balance
Difference between a country's exports and imports
81
Global supply chains
Specialization of production stages across countries
82
Multinational corporation (MNCs)
Companies operating across borders for production, marketing and sales
83
Globalization
Interdependence of countries
84
Trade liberalization
Process of reducing or removing barriers to international trade
85
Financial deregulation
Loosening banking security rules to globalize financial markets
86
Silicon Valley
Global center of technological innovation
87
Washington Consensus
80s
Set of economic policies which influenced US globalization strategies
88
Neoliberal globalization
Neoliberal apporach to globalization
89
Alter-globalization movement
Late 20s
Advocate a fairer, more sustainable form of globalization
90
Subprime mortgage crisis of 2007-2008
Most severe financial crisis since the Great Depression
91
Mortgage loan
Secured loan for real estate purchases (buying a house)
92
Mortgage-backed securities
Investors returns from homeowner payments
93
Savings and loan crisis
Banks engaged in risky investments
94
Financial bubble
When the price of a good is abnormally high compared to its real worth
95
Subprime mortgage loan
Issued to borrowers with lower credit ratings. Carried a higher interest rate that can increase over time
96
Emergency Economic Stabilization Act of 2008
Created federal programs to "bail out" failing financial institutions and banks
97
Solidarity economy
Prioritize shared ownership and social justice
98
Community wealth building
People-centered approach to local economic development
99
Elinor Ostrom
American political economist who created the common movement
100
Common movement
Collective governance
101
Worker cooperative
Buisiness owned and managed by employees
102
Consumer cooperative
Owned by the consumers themselves
103
Fair trade
Equitable trade by guarenteeing fair wages and fair practices for producers
104
Local currencies
Alternative monetary system used within specific regions to support local economics
105
Credit unions
Member-owned cooperative that prioritize lending for community benefit over profit maximization
106
Public banking
Financial institutions owned by the government
