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Policy Study Cards
Terms in this set (34)
Power to manage the economy:
Topic or information on one side & memory trick on other. "mt" = memory trick
Congress' power in the economy
mt: Congress controls tax & debts like they do laws. Checks the President with budget approval like they do with legislation.
President's power in the economy
mt: He has power with taxes and spending in the same way he can't write his own laws. Submits the budget with his wants to Congress like he does with laws.
Two types of economic policies:
"fiscal" has to do with taxing, spending, and the borrowing of activities of the national government and the word reminds me of "pistol." You go to the range to shoot a pistol. Congress is the range and the actions are the pistol.
(still fiscal) President proposes the budget and Congress passes it.
mt: If the President wants to shoot the pistol, Congress has to let him.
mt: "monetary" is regulating money supply, controlling inflation, and adjusting interest rates. These all revolve around money and monetary looks similar to money.
(still monetary) Federal Reserve Board controls monetary policy.
mt: you handle your money, so you "reserve" it to yourself and the Federal Reserve Board handles the money in this case.
Executive Branch information:
Agencies submit budget needs to Office of Management and Budget
mt: the Office of Management and Budget is an office which manages the budget. (executive branch only)
President reviews OMB and submits is to Congress
mt: Like on facebook, the President reads an agency's "post"(budget) and "shares" is with Congress
President signs or vetoes the whole proposal--no line item vetoes, and Congress can override vetoes with a 2/3 vote from both houses
mt: budgets go through the same basic system as laws do!!!
A check on the OMB is that the Congressional Budget Office(CBO) performs an analysis on the President's budget
mt: "C" form CBO is like the "C" like in "Check" and Congress checks the OMB
Government Accountability Office(GAO) is a congressional committee that makes sure money is spent as it supposed to be.
mt: the Government Accountability Office is held "accountable" for making sure the money is spent the right way.
Political influences include political party differences, political action committees, interest groups, iron triangles, and public opinions.
mt: all political influences include things that directly
Economic performance factors:
Inflation is when goods and services increase in price over time. High rates of this can negatively affect the stability and growth of the economy.
mt: when an air mattress inflates, it rises over a period of time. Like the economy, if the air mattress inflates too much, it will become "unstable" and pop, thus no longer "growing."
Unemployment is when people try to find jobs, but aren't able to find them. Unemployment rates above 8% can cause economic problems.
mt: "above" minimum wage is 8 dollars, but this should be looked at like a negative thing for this content
Managing the economy:
Budget deficit is when government expenditures exceed the amount of income during one year.
mt: "deficit" rhymes with "that-is-it" like that is all the money for this year.
National (public) debt is the amount that is owed by the federal government.
mt: debt is money owed and national relates to the government.
Developments in economic policy:
Keynesian economics are economics with the belief that economic health can be manipulated through levels of spending.
mt: keys can manipulate doors to open to help enter a room like Keynesian economics can use spending manipulation to help the economic health
Supply-side economics are cuts in taxes that will produce business investment to help with loss of money due to lower tax rates.
mt: you supply promotion within businesses by "supplying" tax rates that are lower.
Trade deficits are increased by the expanding economy in China and rising prices for oil from oversea suppliers.
mt: the deficits are trade ones and they rise because of those we trade with: Chine and oversea oil suppliers.
Examples of cash subsides are Aid to Families with Dependent Children (AFDC) and payments to farmers.
mt: cash is given to certain people who need it for certain reasons
Examples of tax incentive subsides are home mortgage interest payments being tax deductible, oil companies getting tax credits for production and exploration, and tariffs that protect domestic industries.
mt: incentives relating to payments, typically in tax form, fall into this category.
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