Economic Policy, Bureaucracy, and Iron Triangles

Discretionary spending

spending that is not required to pay for contracts, interest on national debt, or entitlement programs such as national security

Budget ceiling

a legislative limit on the amount of national debt that can be issued by the US Treasury, thus limiting how much money the federal government may borrow.

Tax exemption

a monetary exemption which reduces taxable income. Tax exempt status can provide complete relief from taxes, reduced rates, or tax on only a portion of items. ... also refers to removal from taxation of a particular item rather than a deduction.

TPP

a multinational trade agreement that threatened to extend restrictive intellectual property (IP) laws across the globe and rewrite international rules on its enforcement. The agreement was finally abandoned in November 2016 following the U.S. Presidential election. includes comprehensive and specific rules about environmental standards, labor practices, the influence of state-owned enterprises, trade disputes, e-commerce policies, intellectual property protection and anti-corruption measures.

Flat tax

an income tax system in which everyone pays the same tax rate regardless of income.

National Performance Review

A 1993 effort, led by Vice President Al Gore, to make the bureaucracy work better and cost less.

Department of Justice

"To enforce the law and defend the interests of the United States according to the law; to ensure public safety against threats foreign and domestic; to provide federal leadership in preventing and controlling crime; to seek just punishment for those guilty of unlawful behavior; and to ensure fair and impartial administration of justice for all Americans." United States Attorneys, who prosecute offenders and represent the United States Government in court; the National Security Division, which coordinates the Department's highest priority of combating terrorism and protecting national security; the major investigative agencies - the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives - which prevent and deter crime and arrest criminal suspects; the United States Marshals Service, which protects the federal judiciary, apprehends fugitives, and detains persons in federal custody; and the Federal Bureau of Prisons, which confines convicted offenders.

OPM

(The Office of Personnel Management) is an independent agency of the United States government that is tasked with the oversight of civil service hirings.

Progressive/Graduated tax

A progressive tax is a tax in which the tax rate increases as the taxable amount increases; imposed in an attempt to reduce the tax incidence of people with a lower ability to pay

Budget Resolution

A resolution binding Congress to a total expenditure level, supposedly the bottom line of all federal spending for all programs.

Revolving door

A term describing the movement of individuals from government positions to jobs with interest groups or lobbying firms, and vice versa.

Hatch Act (1939/1993)

An Act to Prevent Pernicious Political Activities, is a United States federal law whose main provision prohibits employees in the executive branch of the federal government, except the president, vice-president, and certain designated high-level officials

Sherman Anti-trust Act

An act passed in 1890 which prohibited any "contract, combination, in the form of trust or otherwise, or conspiracy in restraint of trade or commerce."

Continuing resolution

An appropriations bill is a bill that appropriates (gives to, sets aside for) money to specific federal government departments, agencies, and programs.

Supply-side tax cuts

An economic theory that holds that, by lowering taxes on corporations, government can stimulate investment in industry and thereby raise production, which will, in turn, bring down prices and control inflation.

Planning

Economic planning is a resource allocation mechanism that is contrasted with the market mechanism. As a coordinating mechanism for socialist economics, economic planning substitutes factor markets and is defined as a direct allocation of resources.

Keynesianism

Keynesian economics is an economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed by the British economist John Maynard Keynes during the 1930s in an attempt to understand the Great Depression. Keynes advocated increased government expenditures and lower taxes to stimulate demand and pull the global economy out of the depression. Subsequently, Keynesian economics was used to refer to the concept that optimal economic performance could be achieved -- and economic slumps prevented -- by influencing aggregate demand through activist stabilization and economic intervention policies by the government.

FDIC

The Federal Deposit Insurance Corporation; an independent federal agency insuring deposits in U.S. banks and thrifts in the event of bank failures. The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices.

OMB

The Office of Management and Budget (OMB) is the business division of the Executive Office of the President of the United States that administers the United States federal budget and oversees the performance of federal agencies.

Discretionary authority

The extent to which appointed bureaucrats can choose courses of action and make policies that are not spelled out in advance by laws; the ability to exercise powers that may not be expressly granted by law.

Securities and Exchange Commission

a U.S. government agency that oversees securities transactions, activities of financial professionals and mutual fund trading to prevent fraud and intentional deception. an independent, federal government agency responsible for protecting investors, maintaining fair and orderly functioning of securities markets, and facilitating capital formation.

Council of Economic Advisors

a United States agency within the Executive Office of the President established in 1946, which advises the President of the United States on economic policy; a group of distinguished economic analysts. It advises the U.S. President on fiscal policy. It does not advise the nation's central bank on monetary policy. appointed by pres. and approved by senate

Agricultural Adjustment Act

a United States federal law of the New Deal era designed to boost agricultural prices by reducing surpluses. ... The Act created a new agency, the Agricultural Adjustment Administration, an agency of the U.S. Department of Agriculture, to oversee the distribution of the subsidies.

Pendleton Civil Service Act (1883)

a United States federal law, enacted in 1883, which established that positions within the federal government should be awarded on the basis of merit instead of political affiliation.

Balanced Budget Amendment

a constitutional rule requiring that a state cannot spend more than its income. It requires a balance between the projected receipts and expenditures of the government. It is often proposed that a balanced-budget rule be added to the federal United States Constitution.

Federal Trade Commission

a federal agency, established in 1914, that administers antitrust and consumer protection legislation in pursuit of free and fair competition in the marketplace.

Inflation

a general increase in prices and fall in the purchasing value of money.

Name-request/"buddy" system

a job to be filled by a person whom a government agency has already identified by name

Whistle Blower Protection Act (1989)

a law that protects federal government employees in the United States from retaliatory action for voluntarily disclosing information about dishonest or illegal activities occurring at a government organization.

Government Corporations

a legal entity that undertakes commercial activities on behalf of an owner government. Ex: Amtrak, USPS

Appropriations Bill

a legislative grant of money to finance a gov program

Competitive service

a part of the United States federal government civil service. Applicants for jobs in the competitive civil service must compete with other applicants in open competition under the merit system administered by the Office of Personnel Management.

Freedom of Information Act (1966)

a piece of legislation that grants public access to documents or other data in the possession of a government agency or public authority, unless the information falls into a category that is specifically excluded from the terms of the legislation.

Tax deduction

a reduction of income that is able to be taxed and is commonly a result of expenses, particularly those incurred to produce additional income; removed from taxable income, also known as the adjusted gross income, and thus lowers the taxpayer's overall tax liability.

Earned Income Tax Credit (EITC)

a refundable tax credit for low- to moderate-income working individuals and couples, particularly those with children. The amount of EITC benefit depends on a recipient's income and number of children.

Federal Reserve Board

a seven-member body that governs the Federal Reserve System, the U.S. central bank in charge of making the country's monetary policy.

Subsidies

a sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive.

Regressive tax

a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases. In terms of individual income and wealth, a regressive tax imposes a greater burden (relative to resources) on the poor than on the rich: there is an inverse relationship between the tax rate and the taxpayer's ability to pay, as measured by assets, consumption, or income.

Tariff

a tax or duty to be paid on a particular class of imports or exports.

Iron Triangle

a unique relationship between bureaucracy, congressmen, and lobbyists that results in the mutual benefit of all three of them.

Laissez-Faire

abstention by governments from interfering in the workings of the free market.

Government by proxy

administering government programs by network or contracted agencies; when state and local governments are hired to staff and administer federal programs; the people who are the public leaders of the government are not the real power. Someone else makes the policy for them to carry out.

Independent Agencies

agencies that exist outside the federal executive departments (those headed by a Cabinet secretary) and the Executive Office of the President. ... These agency rules (or regulations), when in force, have the power of federal law.

Communism (economic)

all means of production are owned in common, rather than by individuals (see Marxism and Marxism-Leninism). In practice, a single authoritarian party controls both the political and economic systems.

Glass-Steagall Act

also known as the Banking Act of 1933; was passed by Congress in 1933 and prohibits commercial banks from engaging in the investment business. It was enacted as an emergency response to the failure of nearly 5,000 banks during the Great Depression.

Wagner Act

also known as the National Labor Relations Act of 1935, is the most important piece of labor legislation enacted in U.S. history. It made the federal government the arbiter of employer-employee relations through the creation of the national labor relations board (NLRB) and recognized for the first time the right of workers to organize and bargain collectively with their employers. The act overturned decades of court decisions that asserted that labor unions violated an employee's liberty of contract.

NAFTA

an agreement among the United States, Canada and Mexico designed to remove tariff barriers between the three countries.

Issue network

an alliance of various interest groups and individuals who unite in order to promote a common cause or agenda in a way that influences government policy.

Capitalism

an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state.

Mixed economy

an economic system combining private and public enterprise.

Free market

an economic system in which prices are determined by unrestricted competition between privately owned businesses.

CAFTA

an expansion of NAFTA to five Central American nations (Guatemala, El Salvador, Honduras, Costa Rica and Nicaragua), and the Dominican Republic.

National Labor Relations Board

an independent US government agency with responsibilities for enforcing US labor law in relation to collective bargaining and unfair labor practices. ... Unfair labor practices may involve union-related situations or instances of protected concerted activity. takes action to safeguard employees' right to organize and to decide whether to have unions serve as their bargaining representative with their employer.

Excise tax

any duty on manufactured goods which is levied at the moment of manufacture, rather than at sale. ... are typically imposed in addition to an indirect tax such as a sales tax. also known as "sin tax"

Excepted service

any federal or civil service positions which are not in the competitive service or the Senior Executive service. Excepted service agencies set their own qualification requirements and are not subject to the appointment, pay, and classification rules in title 5, United States Code.

Socialism (economic)

any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods.

Red tape

excessive bureaucracy or adherence to rules and formalities, especially in public business.

Regulatory Commissions

federal agencies created by an act of Congress that are independent of the executive departments. Though they are considered part of the executive branch, these agencies are meant to impose and enforce regulations free of political influence.

Department of Commerce

focuses on promoting American businesses both in the United States and overseas. The department also gathers economic and demographic data to measure the well-being of the economy, promotes U.S. exports, enforces international trade agreements, regulates the export of sensitive goods and technologies, and issues patents and trademarks. But then there are Commerce's non-business duties, such as overseeing scientific data that helps forecast the weather and determine the health of the world's oceans.

Department of State

functions as the diplomatic wing of the federal government, handling matters of foreign affairs with other nations and international bodies. Primary job is to promote American foreign policy throughout the world.

Trust busting

government activities aimed at breaking up monopolies and trusts.

Department of Labor

in charge of programs and laws that cover all facets of employment and work affecting 125 million workers and 10 million businesses. DOL administers federal labor laws covering workers' rights to safe and healthful working conditions, a minimum hourly wage and overtime pay, freedom from employment discrimination, unemployment insurance and other income support.

Entitlements

include Medicaid, Medicare, Social Security, Unemployment and Welfare Programs; rights granted to citizens and certain non-citizens by federal law.

Free trade

international trade left to its natural course without tariffs, quotas, or other restrictions.

Authorization Bill

legislative permission to begin or continue a government program or agency

Department of Health and Human Services

manages a wide array of health and welfare programs. HHS is responsible for regulating food products and new pharmaceutical drugs (Food and Drug Administration), implementing the nation's biggest health care programs (Medicare and Medicaid), preventing the outbreak and spread of diseases (Centers for Disease Control and Prevention) and funding some of the most important medical research in the world (National Institutes of Health), among other programs.

Department of Housing and Urban Development

oversees federal programs designed to help Americans with their housing needs. HUD seeks to increase homeownership, support community development and increase access to affordable housing free from discrimination. The agency enforces a swath of federal housing laws, operates mortgage-supportive initiatives and distributes millions of dollars in federal grants.

Department of Agriculture

oversees the American farming industry. USDA duties range from helping farmers with price support subsidies, to inspecting food to ensure the safety of the American public. The department seeks to expand overseas markets for U.S. agricultural products and support international economic development; provide financing needed to create jobs; improve housing, utilities and infrastructure in rural America; and improve nutrition and health by providing food assistance and education.

Department of Veterans Affairs

provides the millions of American veterans and their dependents with health care services, benefits programs and access to national cemeteries. VA employs more than 250,000 people at hundreds of medical centers, nursing homes, benefits offices and national cemeteries throughout the country. The department carries out its duties through three main administrative divisions: Veterans Benefits Administration; Veterans Health Administration; and National Cemetery Administration.

Department of Energy

responsible for advancing the national, economic and energy security of the United States through the implementation of policies regarding nuclear power, fossil fuels, and alternative energy sources. The DOE promotes scientific and technological innovation in all of the aforementioned energy sectors and is charged with the environmental cleanup of the national nuclear weapons complex. One of its key duties is the formulation and implementation of the National Energy Policy.

Department of Homeland Security

responsible for ensuring the safety and security of the United States from both man-made and natural disasters. Created in the aftermath of the Sept. 11 terrorist attacks, DHS has largely focused on federal preparations to deal with terrorism while managing other duties related to border security, customs and emergency management, among others.

Department of Defense

responsible for providing the military forces needed to deter war and protect the security of our country. The major elements of these forces are the Army, Navy, Marine Corps, and Air Force, consisting of about 1.7 million men and women on active duty.

Sequester

setting a hard cap on the amount of government spending within broadly defined categories

Department of Education

supports the teaching of students from kindergarten through postgraduate school by providing funding for dozens of programs. With this funding comes a variety of federal rules and requirements that schools and colleges must meet in order to be eligible. The department's elementary and secondary programs annually serve more than 14,000 school districts and some 56 million students attending more than 100,000 public schools and 34,000 private schools. Department programs also provide grant, loan, and work-study assistance to nearly 11 million postsecondary students.

Income tax

tax levied by a government directly on income, especially an annual tax on personal income.

Payroll tax

taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff. generally fall into two categories: deductions from an employee's wages, and taxes paid by the employer based on the employee's wages.

Administrative Procedures Act (1946)

the United States federal statute that governs the way in which administrative agencies of the federal government of the United States may propose and establish regulations.

Taxable income

the amount of your income that is subject to income tax.

Reaganomics

the economic policies of the former US president Ronald Reagan, associated especially with the reduction of taxes and the promotion of unrestricted free-market activity. "Trickle down economics"

Department of the Treasury

the executive agency responsible for promoting economic prosperity and ensuring the financial security of the United States. The Department is responsible for a wide range of activities such as advising the President on economic and financial issues, encouraging sustainable economic growth, and fostering improved governance in financial institutions. The Department of the Treasury operates and maintains systems that are critical to the nation's financial infrastructure, such as the production of coin and currency, the disbursement of payments to the American public, revenue collection, and the borrowing of funds necessary to run the federal government.

Department of Transportation

the federal government's lead agency for planning and support of the nation's land, air and sea-based travel systems. DOT develops, implements and enforces federal regulations governing use of America's roads and highways, airports and air corridors, railways and seaports. The department also makes available billions of dollars in federal grants each year to state and local authorities to help improve transportation programs throughout the country.

Securities Act (1933)

the first federal legislation used to regulate the stock market. The act took power away from the states and into the hands of the federal government. The act more importantly created a uniform set of rules to protect investors against fraud. was established as a result of the stock market crash of 1929. The legislation had two main goals: to ensure more transparency in financial statements so investors can make informed decisions about investments; and to establish laws against misrepresentation and fraudulent activities in the securities markets.

Privacy Act (1974)

the law that governs the personal information handling practices of federal government institutions. The Act applies to all of the personal information the federal government collects, uses and discloses—be it about individuals or federal employees.

Monetary Policy

the macroeconomic policy laid down by the central bank. It involves management of money supply and interest rate and is the demand side economic policy used by the government of a country to achieve macroeconomic objectives like inflation, consumption, growth and liquidity.

Fiscal Policy

the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy; the taxing and spending actions of governments.

Secretary of the Treasury

the principal economic advisor to the President and plays a critical role in policy-making by bringing an economic and government financial policy perspective to issues facing the government.

Globalization

the process by which businesses or other organizations develop international influence or start operating on an international scale.

Deficit

the result of when the government in one year spends more money than it takes in from taxes

Monetarism

the theory or practice of controlling the supply of money as the chief method of stabilizing the economy.

Protectionism

the theory or practice of shielding a country's domestic industries from foreign competition by taxing imports.

Debt

the total deficit from the first presidency down to the present

GNP

the total value of goods produced and services provided by a country during one year, equal to the gross domestic product plus the net income from foreign investments.

GDP

the total value of goods produced and services provided in a country during one year.

Client politics

the type of politics when an organized minority or interest group benefits at the expense of the public; identity politics

Department of the Interior

uses sound science to manage and sustain America's lands, water, wildlife, and energy resources, honors our nation's responsibilities to tribal nations, and advocates for America's island communities. responsible for preserving the natural wonders of the American landscape for present and future generations to enjoy, while facilitating the development of public lands for use by mining and oil companies. The mission of Interior officials is to implement programs that offer recreational opportunities for all Americans, support American Indian and Alaska Native populations, conduct scientific research, provide stewardship of energy and mineral resources, foster sound use of land and water resources and conserve and protect fish and wildlife.