160 Exam 1
established ways of doing things
policies are....
$113,700
the maximum taxable amount was $110,100 in 2012 and _______ in 2013
assets, labor, family and charity
traditional sources of economic security included....(4)
Charles L. Cochran and Eloise F. Malone
"Public policy consists of political decisions for implementing programs to achieve societal goals."
Clarke E. Cochran
"Public policy is the outcome of the struggle in government over who gets what."
B. Guy Peters
"Stated most simply, public policy is the sum of government activities, whether acting directly or through agents, as it has an influence on the life of citizens."
Clarke E. Cochran
"The term public policy always refers to the actions of government and the intentions that determine those actions."
Declining overall wealth Lower credit ratings Currency depreciation Higher interest rates for all types of loans Reduced foreign investment Falling country competitiveness Higher tax rates Less money available for public programs (more paid in interest) Rising debt to GDP and increased dependence on external financing
Consequences of Continued Large Fiscal Deficits
38
For Americans over 65, SS accounts for _% of income
Republic
Form of government where citizens only rule through officers and representatives chosen by citizens
29, 25, 25, 9,000
From 1929 to 1933, U.S. gross national product declined __ percent (in constant dollars), the price level fell __ percent, the unemployment rate reached __ percent, and some _____ banks failed
pillar
Generally, Social Security plans are defined as single or multi "_____" systems.
promote public good
Governments are constituted to...
women over 65
Group with most members in poverty?
yes
Have tax rate increases have been frozen since 1990?
It traps them into bad careers
How does medical underwriting harm young people?
18 months
How long does COBRA last?
20 million
How many more Americans would be poor without social security?
7.1 billion
How many people are in the world?
2.5 billion
How many people in the world live on less than $2 a day?
$108
How much does the average American spend per day?
6.1%
2008 unemployment rate
Social security, defense, medicare and medicaid
3 biggest government outlays
China, Saudi Arabia, Germany, Japan, Norway
5 biggest exporters
United States, Brazil, Russia, India, Australia
5 biggest importers
$30,000
75% of Americans nearing retirement (age 50 to 64) have less than ________ in retirement accounts
Pillar 2
American pillar. Money going in goes right out.
aging population, funding shortfalls
An _______ and _________ threaten the ability of the SS program to pay future beneficiaries
57
Approximately ______ million people were receiving ss benefits in 2013
Protection of minority rights Equality in voting Wide distribution of political resources Freedom of expression Competition for public office Majorities or pluralities primarily rule
Attributes of Democracies
5.1%
Average Personal Savings Rate of Americans
41,674
Average personal wage of Americans
Yes
Can forms of government have elections without being democracies?
yes
Can ss tax be manipulated without changing the tax rate?
Germany, 1889
The world's first Social Security retirement program was put into effect in ________ in ______.
12
The world's population is growing by 1 billion every how many years?
public interest
Theoretically it does so by attempting to discover the________that compels public action or studied inaction.
Great Britain, Japan, China
Three foreign countries we borrow from...
The act of installing and using the rules of authority that members of a community have agreed to obey
To Govern: definition
China, India, U.S
Top three populated countries
India, China, U.S
Top three populated countries in 2050
33x what you spend and 20x Your Income
Two Often Referenced Rules as a Guide for retirement calculations
65 ½, 62
_____ is the average retirement age. Retirees can begin collecting at age ____, but their monthly benefits are reduced
a form of social insurance to protect individuals from financial hardship
social security
50%
someone that makes it to their mid-80s has a _____ chance of making it to 99
Ancient Greece, 507 B.C.
Democracy was first tried when and where?
developing
Do developing or developed nations use more energy?
Yes
Do the employee and employer contribute equal amounts to ss?
the ability to do work
Energy is...
9.6 billion
Estimated total of people in the world in 2050
Pillar 1
European pillar. Not taxed.
Industrial Revolution
Families stopped depending on economic security from many children as the developed world underwent the...
12.4
If self employed, your tax rate would be the total rate (___%).
28 56
In 1890, only ____ percent of the U.S. population lived in cities, by 1930 this percentage had exactly doubled, to ___ percent
The head of the winning party
In a parliamentary system, who is asked to assume the office of Prime Minister or Premier
25
In two days the Dow Jones industrial average fell by ____% (ending on Black Tuesday, 29 October).
less
Is population growing faster in less or more developed countries?
No
Is social security a pension fund?
public policy
It is expressed in the body of laws, regulations, decisions and actions of government
Retirement
More than 50% of Americans have not made this calculation.
individuals
More than half of government outlays get paid to ______.
Parliamentary
Most popular form among the world's democracies
Old-Age, Survivors and Disability Insurance (OASDI)
Official name of social security
Pillar 3
Pension pillar
Spending cuts and revenue increases can be postponed to commence on a future date once economic growth has hopefully recovered Reform tax code Raise tax rates Higher economic growth rate Increase Revenue There must be reforms in Social Security, Medicare and Defense to make a meaningful impact Reduce Spending
Possible Solution to Growing Debt Burden
Thomas Dye
Public policy is "Whatever governments choose to do or not to do."
Oligarchy
Rule by a few such as a ruling class or business class
Democracy
Rule by the people
Monarchy
Ruled by a single person such as a king or emperor
20
SS comprises over __% of US federal government expenditures
1935
The Social Security Act of....
Individual Income Taxes, Social Insurance Receipts
The US Government's revenue is dominated by __________ and __________.
pay-as-you-go
The US works on a ________ ss system
34
The United States was slow to embrace social security. By the time the 1935 program was adopted, ___ other countries already had some sort of social insurance program
Anarchy
The absence of rules or supreme law
more than 50 billion
The difference between the United States' exports and imports
Tax can be manipulated without changing the tax rate Self-employed people might perceive they face a larger tax burden Regressive tax Higher income earners stop paying Social Security taxes on every dollar earned above $113,700 in 2013 Some individuals are not aware of the total tax burden assessed since half of the tax is paid by their employer
What are some concerns about the tax system?
Foreign holders, Government accounts, private domestic holdings
What are the three largest holders of government debt?
A tax that takes a larger percentage of total income from low-income people than from high-income people
What is a regressive tax?
It will get better, then level off
What is happening to the U.S. deficit in the next few years?
$113,700
What is the cut off for highest ss income?
legislative elections
What kind of elections are held for seats in Parliament?
19.8 million
What percent of population in poverty?
Less than 5%
What percent of the world's population is made up by the U.S?
29%
What percent of the world's population lived in cities in 1950?
47%
What percent of the world's population lives in cities?
61%
What percent of the world's population will live in cities in 2030?
34%
What percentage of the U.S. debt is held by foreign holders?
Presidential
What system has an election of a chief executive by electoral support independent of the legislature.
Presidential
What system separates the legislative and executive functions.
South Asia, East Asia and the Pacific, Sub-Saharan Africa
What three areas of the world have the most people living on less than $2 a day?
1932, 89%, 1954
When it finally reached its record low in July _____, the Dow Jones had fallen ____, and it did not recover to 1929 levels until _____.
2002
When was the last time the U.S had a surplus?
Pillar 5
Which pillar? 401K, IRA, Defined Contribution. Assets, house...etc.
Pillar 4
Which pillar? Company puts money in fund for your retirement. Defined benefit.
Expectation of high infant mortality Social safety net (children provide for the elderly) Women start having children earlier in life Cultural reasons Fewer women in the workforce Lack of reproductive education, family planning Lack of adequate contraceptive Greater percentage of rural people (more hands on the farm)
Why are fertility rates higher in less developed countries?
Uncompromising positions taken by many politicians Tax collection is already lower than average Despite the credit downgrade and debt concerns, borrowing costs of the US government continue at historical lows 16% of GDP in 2012 vs. average of 18% since 1950 Two of the costliness programs, Social Security and Medicare, are popular amongst arguably the strongest voting bloc in the US New stimulus bill would increase spending Tax incentives to hire or invest would decrease revenue Cutting spending now would dampen an already slow economic recovery Many policies that would accelerate growth may exacerbate the debt problems by increasing deficits in the short-term
Why is it so hard to solve the deficit problem?
social issues
public policies are those that the government adopts to address...
deficit
when a government's expenditures exceed the revenue that it generates, this is the result
surplus
when a government's revenue that it generates exceeds its expenditures, this is the result