Chapters 16, 17, 18, 19 Vocabulary

22. (federal) subsidies

A grant or contribution of money made by the federal government in support of an undertaking or the upkeep of a product or service. The government could subsidize the radish market so that radish farmers produced less radishes in order to drive radish prices higher.

1. entitlement

A program that the government must provide money for that everyone receives. Makes up almost ⅔ of annual spending.

6. policy agenda

A set of issues and problems that governmental policy makers consider important. The mass media play an important role in influencing the issues which receive public attention. Basically, the policy agenda is what the topics the government focuses on changing at any given time, based on input from the public.

10. regressive tax [national debt]

A tax for which the percentage of income paid in taxes decreases as income increases. An example is the payroll tax. The amount of money a national government owes to other governments or its people after borrowing funds.

9. progressive tax

A tax graduated so that people with higher incomes pay larger fraction of their income than people with lower incomes. An example is the income tax.

3. zero-sum games

A type of interest group politics that takes away from one group as much as is given to another; as a result, no one benefits. This is a type of redistributive policy. An example includes raising the minimum wage eventually causing prices of all goods or services to go up because the businesses can't afford to pay their employees the new minimum wages.

30. closed shop

A workplace can only hire union members. Was outlawed in 1947, but some professions still incorporate it. Helps secure unions.

25. World Trade Organization (WTO)

Administers the rules governing trade between its 144 members. The organization helps producers, importers, and exporters conduct their business and ensure that trade flows smoothly.

29. Occupational Safety and Health Administration (OSHA)

Agency of the Department of Labor that was created to protect the rights and safety of workers. It encourages workplaces to reduce hazards, improve upon current safety, and monitor illness and injury on the job.

27. North American Free Trade Agreement (NAFTA) [monopoly] [antitrust legislation]

Agreement signed on January 1, 1994, that allows the opening of borders between the United States, Mexico, and Canada, creating an economic pact that combined the economies of countries into one of the world's largest trade blocs, a type of intergovernmental agreement. Complete control of a product or business by one person or group. Federal laws (starting with the Sherman Antitrust Act of 1890) that try to prevent a monopoly from dominating an industry and restraining trade. President Theodore Roosevelt was an advocate of anti-trust legislation, a so-called "Trust-Buster."

12. intelligence community

All intelligence agencies that are responsible for collecting information for the federal government including the CIA, DEA, FBI, etc...

40. pollution allowances/"cap and trade"

An incentive for businesses to comply with EPA regulations. If they produce less emissions than required by the EPA, then they can use these reductions to cover a plant expansion or sell them to another company as an offset. Companies receive credit for amounts of pollution it does not emit from the government that can be sold to other companies.

10. Kyoto Protocol

An international agreement that called for industrialized nations to meet certain standards of emissions.

17. economic sanctions

Any method used by a nation to restrict money from flowing into another nation's economy through trade. This is supposed to encourage that nation to change its policies through public diplomacy.

14. administrative discretion

The ability of an agency to determine how it will execute (carry out) laws. This is a major source of independent power for agencies. For example, the Federal Drug Administration (FDA) can decide how to determine the safety of food and drugs.

1. fiscal policy

Government policy that attempts to manage the economy by controlling taxing and spending.

2. monetary policy

Government policy that attempts to manage the economy by controlling the money supply and thus interest rates.

5. "corporate welfare"

Government subsidies, tax breaks, and tax expenditures that directly aid corporations. Part of reaganomics and the trickle down theory, designed to speed up economy.

15. No Child Left Behind

Government subsidised program designed to fix failing public schools. States set high standards and were evaluated through standardized tests.

5. preemption

Idea that a nation is right to attack another another nation to prevent attacks on itself. Key idea of the Bush Doctrine.

8. theory of deterrence

Idea that crime and wrongdoing can be prevented through punishment. Key idea behind the U.S. justice system and U.S. retaliation to foreign attacks.

16. federal funds rate

Interest rate banks charge each other for loans. This set by The Federal Reserve.

2. isolationism v. internationalism

Isolationism is the idea that a nation should refrain from having any interest in affairs outside of its borders. Internationalism is the idea that a nation should work together with others to resolve disputes and preserve order.

8. Supplemental Security Income(SSI)

Means tested entitlement program to provide financial assistance to those that are aged, blind, or disabled with limited income.

14. Head Start

Means tested program to provide preschool education to children of low income families. Provided for meals and medical exams as well.

12. Temporary Aid to Needy Families (TANF)

Means tested public assistance program that provides cash assistance to low income families. Unlike SNAP, this is money that can be used for anything.

9. food stamps/SNAP

Means tested public assistance program that provides money to needy families specifically for food.

10. Medicaid

Means tested public assistance program that provides money to pay for health care expenses for needy families of all ages.

16. Pell Grant

Means tested student assistance program providing money for college education to low income families.

34. Securities and Exchange Commission (SEC)

Monitors and regulates financial markets and investment companies. Incorporated some government intervention in capitalism.

20. entrepreneurial politics

Policies in which almost everybody benefits and a small group pays the cost. For example, in the late sixties and early seventies as politicians used entrepreneurial politics to win reputations and power by leaping to the front of public enthusiasm for environmental protection. Entrepreneurial politics are the reverse of client politics (many, rather than the few gain benefits). (concentrated costs, distributed benefits)

3. social safety net

Programs that protect the minimum standard of living and income. Efforts to decrease people living in poverty. Charities maintain this.

1. realism v. idealism

Realism is the idea that a nation needs to pursue power and establish strength. Idealism is the idea that a nation should work to minimize conflict and focus on cooperation and diplomacy and morals.

38. deregulation

Removing government intervention within industries and businesses. Most deregulated industry is the airlines.

35. Clean Air and Water Acts

Required the EPA to set standards and enforce regulations to protect the public from contaminated air and water. Natural water sources had to be safe for fishing and swimming. States have to enforce these regulations or face fines.

37. corporate social responsibility

Responsibility of a business to protect and improve the quality of society more than the owner's financial interests. Does not usually happen.

13. tax expenditures [sales tax]

Revenue losses that result from special exemptions, exclusions, or deductions on federal tax law. Approximately 54% of Americans pay federal income tax and approximately 28% pay a payroll tax. All citizens pay a sales tax regardless of their income, because it is a flat-tax that occurs whenever a good or service transaction occurs.

39. Gramm

Rudman Act- Provided for automatic spending cuts to be implemented if congress and the president failed to reach a set target to keep out of the deficit range. This happened in Reagan's administration to deal with huge deficits and budget issues.

4. public assistance

Social welfare programs that require no pay in. They are means tested and include programs like TANF and Medicaid.

12. discretionary spending [OMB] [CBO]

Spending set by the government through appropriations bills, including operation expenses, salaries of government employees, defense spending, environmental concerns, education, and even space exploration funding. Approximately one third of federal spending is discretionary. The Office of Management and Budget is the largest office within the Executive Office of the President of the United States (EOP). The main function of OMB is to produce the President's budget. The Congressional Budget Office is a non-partisan, "double-checker" for Congress to oversee the President's proposed budget.

33. right to work state [labor injunctions] [collective bargaining]

State law prohibiting employers from requiring union membership to work. Decreased union security.

4. Bush Doctrine

Stated that the U.S. has the right to attack any nation housing weapons of mass destruction that might be used against American interest domestic and abroad.

36. environmental impact statements

Statement of impact of federal actions that affect the quality of the human environment. Must include the impacted environment, impact on the environment, alternatives, all resources to be allocated, and a cost analysis of the proposed plan and alternatives.

17. prime (lending) rate

The base lending rate used by banks. It is also interpreted to be the rate at which banks lend money to their most preferred customers. This is regulated by The Federal Reserve.

15. Federal Reserve System ("the Fed")

The country's central banking system, which is responsible for the nation's monetary policy by regulating the supply of money and interest rates

15. 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. For example, the Federal Drug Administration (FDA) can determine the definition of food and drug safety.

21. Reaganomics

The federal economic policies of the Reagan administration, elected in 1981. These policies combined a monetarist fiscal policy, supply-side tax cuts, and domestic budget cutting. Their goal was to reduce the size of the federal government and stimulate economic growth through his coveted supply-side economics theory.

3. unilateralism v. multilateralism

Unilateralism is the idea that a nation has the right to react alone to threats. Multilateralism is the idea that a nation must consult its allies and other nations involved before reacting to a conflict.

9. normal trade relations

WTO members must extend the same terms and conditions of trade to all members. Prevents conflict in unfair trading.

6. weapons of mass destruction

Weapons with the capability to destroy large areas and kill thousands such as nuclear bombs.

16. public diplomacy

When a nation tries to promote its own policies in other countries. For example, the U.S. removed Saddam Hussein from power and attempted to establish democracy in Iraq.

26. General Agreement on Tariffs and Trade (GATT)

a United Nations agency created by a multinational treaty to promote trade by the reduction of tariffs and import quotas; replaced by the World Trade Organization in 1995, though parts of it are still in effect under the WTO.

13. third-party government

the empowerment of a third party to act for and on behalf of the state. This third "neutral" organization should protect the states from the federal government and attempt to hold the federal government accountable for all of its actions.

10. punctuating policy

the fabrication of new policy that deals with a broad power. These are more difficult policy implementations because a whole new policy is being created. Therefore, these are rarer than incremental policies. Examples include the Affordable Care Act (ACA) or The Voting Rights Act of 1965, both of which were entirely new policies.

7. think tank

a group of people used to research a topic. Most think tanks are comprised of students or professors from colleges and universities. The think tanks work in issue networks to bring attention about a topic to the government in hopes changes will occur.

4. stagflation

a period of slow economic growth and high unemployment (stagnation), while prices rise (inflation). Though rare, this occurred most recently with the 2008 Housing Market Collapse.

5. consumer price index (CPI)

a price index determined by measuring the price of a standard group of goods to represent the "market basket" of a typical urban consumer. It is used to determine changes in prices over time.

14. value

added tax (VAT)- a tax on increased value of a product at each stage of production and distribution rather than just at the point of sale; more common in Europe. For example, a processing plant would be taxed when purchasing carrots from a farmer. A grocery story would be taxed more when purchasing the processed carrots from the processing plant. And the consumer would be taxed the most when purchasing the processed grocery store carrots from the grocery store.

16. Ralph Nader

an American political activist, author, lecturer, and attorney. He focuses on consumer protection, humanitarianism, environmentalism, and democratic government. His book, Unsafe at Any Speed, brought attention to the lack of safety in American automobiles and propelled the automobile industry to take action for an increase of driving safety.

12. issue networks

an iron triangle on steroids. Comprised of: media, think tanks, multiple interest groups to bring attention to an issue.

7. excise tax

government imposes a tax on specific goods and services. Examples include alcohol, cigarettes, and gas.

6. social insurance

government subsidised entitlements that the beneficiary must contribute to. The more contributed, the more benefits received later like social security.

18. interest

group politics- policies in which one small group benefits and another small group pays. They dominate the allocation of block grants for public health programs, in which interest groups contest with each other for shares of a fixed pool of funds. (concentrated costs, concentrated benefits)

7. hard v. soft power

hard power is the threat or use of violence/oppression/military action to get a result. Soft power is using attraction to get a result.

Created in 1913 as the country's central banking system of the US (created by the Federal Reserve Act). It acts as a quasi

public system, meaning it is not owned by the government, but it receives Congressional oversight (neither a public nor private institution).

5. 8 steps to making policy

1. making assumptions about the problem 2. setting the agenda of problems to be addressed 3. deciding to act (based on issue attention cycle)* this is the most difficult step to fulfill 4. deciding how much to do 5. choosing a tool for solving the problem 6. deciding who will deliver the goods or services 7. making rules for implementation 8. running the program (these eight steps are critical to setting policies)

5 tools to solve most public problems

1. spending money 2. using taxes to regulate the economy and encourage certain behaviors 3. providing goods and services directly 4. providing protection against risk 5. creating standards, incentives, and/or penalties

3. inflation & unemployment (as related to economic policy)

A continuous rise in the price of goods and services caused by an decrease in government spending; The proportion of the labor force actively seeking work but unable to find jobs caused by an increase in government spending.

28. trusts

A economic system of corporations that would assign their stocks to a board of trust for management. This helped build up the involved companies and create a monopoly.

7. Social Security Act (all parts)

A government entitlement program designed to assist those in financial need. Provided for block grants to states for temporary assistance for needy families, child and family services, child Support and establishment of paternity, and federal payments for foster care and adoption assistance.

13. Joint Chiefs of Staff

Commanding officers of the armed forces who advise the President on military policy. President is commander-in-chief but is not a military mastermind usually.

13. Patient Protection and Affordable Health Care Act

Designed to make healthcare more affordable and available to uninsured americans. Young adults can stay on parent's private insurance plans until 26. Private insurers cannot discriminate based on preexisting medical conditions.

23. protectionism [trade deficit]

Economic policy of shielding an economy from imports. This protects the country from having a trade deficit. An excess of imports over exports that can cause a country's economy to decline.

19. Keynesian economics

Economic theory based on the principles of John Maynard Keynes stating that government spending should increase during business slumps and be curbed during booms. This is the current economic policy of the United States (for the most part).

32. open shop

Employer hires anyone regardless of union membership. Members then pay dues. Least amount of union security.

31. union shop

Employers hire non union members, but they must join the union within a certain amount of time. Helps secure unions.

11. National Security Council

Executive office responsible for managing foreign and military policy. Responsible for coordinating the assassination of Osama Bin Laden.

15. conventional diplomacy

The most common form of diplomacy, a type of soft power and key to idealism. Relies on ambassadors and peaceful negotiation to resolve issues.

24. dumping

The practice of selling a good in international markets at a price that is below the cost of producing the good, increasing the domestic price of that good from which the good originated. Under the World Trade Organization (WTO) Agreement, dumping is condemned (but is not prohibited) if it causes or threatens to cause material injury to a domestic industry in the importing country.

6. gross domestic product (GDP)

The total value of goods and services produced within the borders of a country during a specific time period, usually one year.

11. iron triangles

Three-sided, mutually advantageous relationship between members of Congressional Committees, Bureaucrats of a federal agency, and interest groups in order to create new policy based on public wants. These are the smaller and more common version of issue networks.

8. issue

attention cycle- saliency (something that really appeals to the people; something people really care about) of an issue that brings legislation about that issue. An example would be the saliency of national security after 9/11 (caused the PATRIOT Act) or the saliency of Civil Rights after "Bloody Sunday" (caused the Voting Rights Act of 1965). A salient ideal today is all about money and national debt.

11. Medicare

entitlement program that provides money to pay for health care and medical expenses for people 65 years of age and older.

18. laissez

faire economics- "Hands-off" economics This was an economic philosophy begun by Adam Smith in his book, Wealth of Nations, that stated that business and the economy would run best with no interference from the government. Instead, the economy would be guided with success by an "invisible hand." This economic system dominated most of the Industrial Revolution.

11. mandatory spending

federal spending required by law that continues without the need for annual approvals by Congress. Over two thirds of federal spending is mandatory, mostly on entitlement programs such as Social Security.

14. military

industrial complex- Coined by Dwight Eisenhower, referring to the relationship between the military, economy, and politics. The military becomes the primary client of manufacturers, causing majority of investments to be in the military, upsetting the national budget.

19. client politics

one group of people get the benefits from assets taken from another group. This is associated with redistributive policy. Client politics are the opposite of entrepreneurial politics (few, rather than the many gain benefits). (distributed costs, concentrated benefits)

4. reverse distributive policy

policy that negatively affects everyone; everyone gets their benefits taken away equally. An example would be to raise taxes across the board, like a universal sales tax on a product, or cut Social Security benefits.

1. distributive policy

provides benefits to all groups in society. Examples of benefits include roads, Social Security, and medical research, National parks, defense.

2. redistributive policy

provides benefits to one group while taking away from another group. Examples of benefits include Welfare and Head Start, a program for low-income students to have access to preschool.

20. supply

side economics- An economic philosophy that holds the sharply cutting taxes will increase the incentive people have to work, save, and invest. Greater investments will lead to more jobs, a more productive economy, and more tax revenues for the government. This policy was largely advocated by President Ronald Reagan in the 1980s.

8. budget deficit

situation when the amount of government spending exceeds its receipts during the fiscal year.

9. incremental policy

small changes to existing law; occurs when policies are already on the books, but edits of these policies are desired. These are easier policy implementations because a whole new policy is not being created. Therefore, these are more common than punctuating policies. An example would be to lower the drinking age from 21 to 18, an edit.

2. means

tested entitlements- People must meet certain qualifications to be a part of these entitlements. Examples include Medicaid and Head Start.

17. majoritarian politics

the majority of people get the benefits of decisions. This is associated with distributive policy. (distributed costs, distributed benefits)