Government Unit 5
Terms in this set (117)
An act of Congress that establishes, continues, or changes a discretionary government program or an entitlement.
An act of Congress that actually funds programs within limits established by authorization bills.
A policy document allocating taxes and expenditures.
A resolution binding Congress to a total expenditure level, supposedly the bottom line of all federal spending for all programs.
Congressional Budget Office
Advises congress on the probable consequences of its decisions, forecasts revenues, and is a counterweight to the president's Office of Management and Budget.
Congressional Budget and Impoundment Act of 1974
Designed to reform the congressional budgetary process by setting up a fixed budget calendar, a budget committee in each house, and the CBO.
When Congress cannot reach agreement and pass appropriations bills, these resolutions allow agencies to spend at the level of the previous year.
An excess of federal expenditures over federal revenues
Policies for which Congress has obligated itself to pay X level of benefits to Y number of recipients such as social security.
Government spending of revenues. Major areas of federal spending are social services and national defense.
All the money borrowed by the federal government over the years and still outstanding.
Everyone should pay the same rate of tax
Gramm-Rudman-Hollings Act (Balanced Budget and Emergency Deficit Control Act)
Mandated maximum allowable deficit levels for each year until 1993.
House Ways and Means Committee
A committee in the House of Representatives that writes the tax codes, subject to the approval of the entire Congress.
Shares of individual wages and corporate revenues collected by the government an authorized by the 16th amendment.
The best predictor of this year's budget is last year's budget plus a little bit more.
Act passed in 1965 that provides both hospital and physician coverage to the elderly
Military Industrial Complex
A phrase coined by President Eisenhower that describes the close relationship between the military hierarchy and the defense industry that supplies its hardware needs.
Office of Management and Budget (OMB)
Responsible for the organization of the federal budget.
Citizens with more taxable income not only pay more taxes but also pay higher rates of tax on their income.
A congressional process through which program authorizations are revised to achieve required savings.
The financial resources of the government such as the income tax or social security tax.
Senate Finance Committee
A committee in the Senate that writes the Tax codes subject to the approval of the entire Congress.
Adopted in 1913 that explicitly permitted Congress to levy an income tax.
Social Security Act
Act passed in 1935 which intended to provide a minimal level of sustenance to older Americans.
Revenue losses that result from special exemptions, exclusions, or deductions on federal tax law.
Tax Reform Act of 1986
Eliminated or reduced the value of many tax deductions, removed several million low-income individuals from the tax rolls, and greatly reduced the number of tax brackets.
Expenditures that are determined not by a fixed amount of money appropriated by Congress but by how many eligible beneficiaries there are for a program or by previous obligations of the government.
A policy designed to ensure competition and prevent monopoly, which is the control of a market by one company.
Economic system in which individuals and corporations, not the government, own the principal means of production and seek profits.
Negotiations between representatives of labor unions and management to determine pay and acceptable working conditions.
Consumer Price Index (CPI)
The key measure of inflation that relates the rise in prices over time.
Earned Income Tax Credit
A "negative income tax" that provides income to very poor individuals in lieu of charging them federal income taxes.
Government benefits that certain qualified individuals are entitled to by law, regardless of need.
Federal Reserve System
The main instrument for making monetary policy in the U.S. It was created by Congress in 1913.
Feminization of Poverty
The increasing concentration of poverty among women, especially unmarried women and their children.
The policy that describes the impact of the federal budget - taxes, spending, and borrowing - on the economy.
Food and Drug Administration
Formed in 1913 and assigned the task of approving all food products and drugs sold in the U.S.
The total market values of goods and services produced by workers and capital within a nation's borders during a given period.
The amount of funds collected between any two points in time.
The "shares" of the national income earned by various groups.
The rise in prices for consumer goods.
Keynesian Economic Theory
The theory emphasizing that government spending and deficits can help the economy weather its normal ups and downs. Proponents advocate using the power of government to stimulate the economy when it is lagging.
The principle that government should not meddle in the economy.
Government programs available only to individuals who qualify for them based on specific needs.
An economic system in which the government is deeply involved in economic decisions through its role as regulator, consumer, subsidizer, taxer, employer, and borrower.
The manipulation of the supply of money in private hands by which the government can control the economy.
Legal minimum hourly wage for large employers.
An economic theory holding that the supply of money is the key to a nation's economic health. Monetarists believe that too much cash and credit in circulation produces inflation.
Businesses with vast holdings in many countries, some of which have annual budgets exceeding that of many foreign governments.
National Labor Relations Act
A 1935 law, also known as the Wagner Act, that guarantees workers the right of collective bargaining sets down rules to protect unions and organizers, and created the National Labor Relations Board to regulate labor-management relations.
Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA)
The official name of the welfare reform law of 1996. The bill added a workforce development component to welfare legislation, encouraging employment among the poor.
A method used to count the number of poor people. It considers what a family must spend for an "austere" standard of living.
A tax by which the government takes a greater share of the income of the rich than of the poor.
A tax by which the government takes the same share of income from everyone, rich and poor alike.
Economic policy of shielding an economy from imports.
A tax in which the burden falls relatively more heavily on low-income groups than on wealthy taxpayers.
Right to Work Law
Right-to-work laws forbid unions and employers to enter into agreements requiring employees to join a union and pay dues and fees to it in order to get or keep a job.
Securities and Exchange Commission (SEC)
The federal agency created during the New Deal that regulates the stock market.
Social Security Trust Fund
The "bank account" into which Social Security contributions are "deposited" and used to pay out eligible recipients.
Social Welfare Policies
Policies that provide benefits to individuals, either through entitlements or means testing.
An economic theory advocated by President Reagan holding that too much income goes to taxes so that too little money is available for purchasing and that the solution is to cut taxes and return purchasing power to consumers.
Temporary Assistance for Needy Families
Once called "Aid to Families with Dependent Children," the new name for public assistance to needy families.
Benefits given by the government directly to individuals such as social security or retirement payments.
As measured by the Bureau of Labor Statistics, the proportion of the labor force actively seeking work but unable to find jobs.
The value of assets owned.
A catastrophic nuclear accident that occurred on April 26, 1986 at the Chernobyl Nuclear Power Plant in Ukraine.
Clean Air Act of 1970
The law aimed at combating air pollution.
Clean Air Act of 1990
Significantly increased the controls on cars, oil refineries, chemical plants, and coal-fired utility plants.
Endangered Species Act of 1973
Law requires the federal government to protect actively each of the hundreds of species listed as endangered-regardless of the economic effect on the surrounding towns or region.
Environmental Protection Agency
Agency of the federal government created in 1970 that administers much of U.S. environmental protection policy.
Environmental Impact Statement (EIS)
A document required by the National Environmental Policy Act (NEPA) for certain actions "significantly affecting the quality of the human environment".
An increase in the earth's average atmospheric temperature that causes corresponding changes in climate and that may result from the greenhouse effect.
Health Maintenance Organization (HMO)
Organization contracted by individuals or insurance companies to provide health care for a yearly fee. This type of health care limits the choice of doctors and treatments.
Medicare Prescription Drug Improvement and Modernization Act (2003)
Medicare beneficiaries would be able to get a price reduction on their drugs.
National Health Insurance
A compulsory insurance program for all Americans that would have the government finance citizens' medical care. First proposed by Truman.
NIMBY (Not in My Back Yard)
Used to express opposition by local citizens to the locating in their neighborhood of a civic project, as a jail, garbage dump, or drug rehabilitation center, that, though needed by the larger community, is considered unsightly, dangerous, or likely to lead to decreased property values.
Patients' Bill of Rights
A list of guarantees for those receiving medical care.
A fund created by Congress in 1980 to clean up hazardous waste sites. Money for the fund comes from taxing chemical products.
Three Mile Island
A partial nuclear meltdown which occurred at the Three Mile Island power plant in Dauphin County, Pennsylvania, United States on March 28, 1979. It was the worst accident in U.S. commercial nuclear power plant history.
Water Pollution Control Act of 1972
A law intended to clean up the nation's rivers and lakes. It requires municipal, industrial, and other polluters to use pollution control technology and secure permits from the Environmental Protection Agency for discharging waster products into waters.
A competition between nations for superiority in the development and accumulation of weapons, esp. between the US and the former Soviet Union during the Cold War
Balance of Trade
The ratio of what is paid for imports to what is earned from exports. When more is imported than exported, there is a balance of trade deficit.
Central American-Dominican Republic Free Trade Agreement (2005)
Lowered tariff barriers to American goods in a number of Central American countries and the Dominican Republic.
Central Intelligence Agency
An agency created after World War II to coordinate American intelligence activities abroad.
The state of political hostility that existed between the Soviet bloc countries and the U.S. led Western powers from 1945 to 1990.
Policy using numerous strategies to prevent the spread of communism abroad
A policy during the Cold War which was aimed at relaxing tensions between the United States and the Soviet Union. The policy calls for increase diplomatic and commercial activity.
Domestic penalties applied by one country (or group of countries) on another for a variety of reasons.
A transnational government composed of most European nations that coordinates monetary, trade, immigration, and labor policies, making its members one economic unit.
A policy that involves choice taking like domestic policy, but additionally involves choices about relations with the rest of the world. The president is the chief initiator of foreign policy.
Used by developed nations to aid developing nations as a humanitarian concern but with the goal of stabilizing nations to keep the governments of the side of the nations who are delivering the aid.
General Agreement on Tariffs and Trade (GATT)
Signed in 1994 by more than 100 nations if reduced tariffs 38% for developed countries, eliminated certain non-tariff barriers and subsidies, and broaden GATT principles to areas such as trade in services, investment, and intellectual property rights and applied more effective disciplines to agricultural trade. It also created the World Trade Organization as an arbiter of international trade disputes.
Mutual dependency, in which the actions of nations reverberate and affect one another's economic lifelines.
International Monetary Fund
An organization of 187 countries with a goal to stabilize exchange rates and assist the reconstruction of the world's international payment system.World Bank - an international financial institution that provides loans to developing countries for capital programs.
The notional barrier separating the former Soviet bloc and the West prior to the decline of communism that followed the political events in eastern Europe in 1989.
A foreign policy course followed throughout most of our nation's history whereby the U.S. tried to stay out of other nations' conflicts.
Joint Chiefs of Staff
The commanding officers of the armed services who advise the president on military policy.
A program of financial aid and other initiatives, sponsored by the US, designed to boost the economies of western European countries after World War II.
A phrase first coined by President Eisenhower in his 1961 farewell address describing the close linkage between the U.S. military and private contractors in the military industry.
Reaffirmed isolationism towards Europe's problems but warned Europe to stay out of the affairs of Latin America.
Enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation.
National Security Council
A body created in the US by Congress after World War II to advise the president (who chairs it) on issues relating to national security in domestic, foreign, and military policy
Non-Governmental Organizations (NGO)
Any non-profit, voluntary citizens' group which is organized on a local, national or international level.
North American Free Trade Agreement (NAFTA)
An agreement between Canada, the US, and Mexico that took effect on January 1, 1994, designed to increase the scope for the free flow trade and investment among these three countries.
North Atlantic Treaty Organization (NATO)
Created in 1949, an organization whose members include the United States, Canada, most Western European nations, and Turkey, all of whom agreed to combine military forces and to treat a war against one as a war against all.
Used to describe the spread of nuclear weapons, fissile material, and weapons-applicable nuclear technology and information, to nations which are not recognized as "Nuclear Weapon States" by the Treaty on the Nonproliferation of Nuclear Weapons, also known as the Nuclear Nonproliferation Treaty or NPT. Some of these countries are Iran, Israel, and North Korea.
Organization of Petroleum Exporting Countries (OPEC)
An economic organization consisting primarily of Arab nations that controls the price of oil and the amount of oil its members produce and sell to other nations.
Secretary of State
The head of the Department of State and traditionally a key adviser to the president on foreign policy.
Secretary of Defense
The head of the Department of Defense and the president's key adviser on military policy; a key foreign policy actor.
The real power in the UN. It is made up of five member nations-U.S., Great Britain, China, France, and Russia.
Strategic Arms Limitation Talks (SALT)
A series of talks between the U.S. and the Soviet Union to limit the growth of their nuclear capabilities.
Strategic Defense Initiative
Renamed "Star Wars" by critics, a plan for defense against the Soviet Union unveiled by President Reagan in 1983. It would create a global umbrella in space, using computers to scan the skies and high-tech devices to destroy invading missiles.
A tax or duty to be paid on a particular class of imports or exports
Created in 1945 whose members agree to renounce war and to respect certain human an economic freedoms.
The principle that the US should give support to countries or peoples threatened by Soviet forces or communist insurrection.
World Trade Organization (WTO)
Regulates international trade.