161 terms

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Inherent Powers
Powers claimed by a president that are not expressed in the Constitution but are inferred from it; most often asserted in times of war or national emergencies.
Expressed Powers
Article 2 Section 2 and 3.
1) Military, 2) Judicial, 3) Diplomatic, 4) Executive, 5) Legislative.
Commander in Chief
The power of the president as commander of the national military and the state national guard units (when called into service) meaning the president is the highest military officer in the U.S. with control over the entire military establishment.

He is also head of the nation's intelligence hierarchy including the CIA, NSC (National Security Council), NSA (National Security Agency), and the FBI.
War and Inherent Presidential Powers
Constitution gives Congress the power to declare war. However, President Truman asserted the principle that the president could decide when and where to deploy America's military and Congress has not declared war since 1941.
War Powers Resolution (1973)
A resolution of Congress declaring that the president can send troops into action abroad only by authorization of Congress or if U.S. troops are already under attack or seriously threatened.

Presidents have generally ignored this resolution, claiming inherent executive power to defend the nation.
Military Sources of Domestic Power
Constitution restrains the president's use of domestic force by providing that a state legislature must request federal troops before the president can send them into the state to provide public order.

Presidents are not obligated to deploy troops merely because the state legislatures make a request.
Presidents may deploy troops in a state or city without request if they consider it necessary to maintain an essential national service, to enforce judicial order, or to protect federally guaranteed civil rights.
President tends to exercise unilateral power justified by declaring a "state of emergency".
Military emergencies have led to expansion of the domestic powers of the executive branch.
Judicial Power of the President
Presidential power to grant reprieves, pardons, and amnesties as well as to "commute" or reduce the severity of sentences gives president power of life and death over individuals.
Diplomatic Power of the President
President is America's "head of state" (chief representative in dealing with other states).
Has the power to make treaties for the U.S. (with advice and consent of Senate), receive ambassadors (now the power to recognize other countries).
Executive Agreement
An agreement between the president and another country that has the force of a treaty but does not require the Senate's "advice and consent"; usually used to carry out commitments already made in treaties or to arrange for matters well below the level of policy.
Executive Power of the President
Most important basis of president's power as chief executive is to see that all laws are faithfully executed and provide that the president will appoint all executive officers and federal judges.

All appointments of top officers, ambassadors, cabinet officers, and others are subject to majority approval by Senate.
Executive Privilege
The claim that confidential communications between a president and that president's close advisers should not be revealed without consent of the president.
Legislative Power of the President
Article II Section 3: State of the Union address.
Line-Item Veto
The power of the executive to veto specific provisions (lines) of a bill passed by the legislature.

1988- Supreme Court ruled it unconstitutional and only an amendment would restore this power to the president.
Power of the Veto
Presidents have used veto to equalize or upset balance of power in Congress.
President rarely vetoes legislation.
Threat of veto can be sufficient; Congress will alter content of a bill to discourage a veto.

Public approval measured by polls has been crucial for the president in negotiating with Congress.
Public uses information conveyed by a veto to reassess what it knows about president's preferences.
Legislative Initiative
The president's inherent power to bring a legislative agenda before Congress.

Congress banks on the president to set the agenda for public policy (with few important exceptions).
Executive Order
A rule or regulation issued by the president that has the effect and formal status of legislation.

Serves as management tool; rules, settings, procedures, etiquette, chains of command, etc.
Most of the provide for the reorganization of structures and procedures or otherwise direct affairs of the executive branch.
Allows president to govern without necessity to persuade Congress.
Legislative Epoch (1800-1933)
Intention of the Constitution was legislative supremacy (saw president as little more than America's chief clerk).

Aside from Jackson and Lincoln, succession of weak presidents until 20th century. Reasons:
1) Only occasional room for greatness in such a weak office.
2) Presidency was not closely linked to major national political and social forces.

Strengthened in 1830s with introduction of national convention system of nominating presidential candidates.
Up until then, candidates had been nominated by their party's congressional delegates called "King Caucus" because any candidate for president had to defer to the party's leaders in Congress in order to get the party's nomination and support of party's congressional delegation in the election.
The New Deal
First hundred day of Roosevelt's presidency in 1933; real turning point in presidential power.
Changed size and character of national government.

Also adopted policies never before tried on a large scale by national government aka government discovered it had "police powers" as well and could directly regulate individuals, provide roads, etc.
Government doubted these programs because they're so new and different from tradition.
National Labor Relations Board v. Jones & Laughlin Steel
Corporation at issue with the National Labor Reactions Act or Wagner Act, which prohibited corporations from interfering with the efforts of employees to engage in union activities. NLRB had ordered them to reinstate workers fired because of union activities. They argued since the activities were local and beyond national gvt. reach, but the Court rejected saying they were involve din interstate commerce.
Delegation of Power
1. Congress recognizes a problem.
2. Congress acknowledges that it has neither the time nor the expertise to deal with the problem.
3. Congress therefore sets the basic policies and then delegates to an agency the power to "fill in the details" aka policy-making powers.

Congress is the constitutional source of policy.
The Cabinet
The secretaries or chief administrators of the major departments of the federal government. Cabinet secretaries are appointed by the president with the consent of the Senate.

Not a collective body, but meets to make decisions. Has no constitutional basis.
Appointments help build party and popular support, but it is not a part organ.
Made up of directors, not board of directors.
National Security Council
"Inner cabinet"; a presidential foreign policy advisory council composed of the president, vice president, secretaries of state, defense and the Treasure, attorney general, and other officials invited by the president.

Presidents have increasingly preferred White House staff to the Cabinet as their means of managing the executive branch.
The White House Staff
Composed mainly of analysts and advisers. Many are given the title "special assistant", the types of judgment and advice they give are much broader and more political than that of the Cabinet departments or Executive Office of the President.
Has grown substantively under recent presidencies.

Duties:
1) Liaisons with Congress and the bureaucracy.
2) Relations with mass media (need staff that is good with earned media and articulates president's message).
3) Eyes and ears of the president (go to lawmakers and gather public opinion).
4) Write all of his speeches (have to know him very well).
The Executive Office of the President
Created in 1939; often called the "institutional presidency": the permanent agencies that perform defined management tasks for the president.

Has grown from 6 administrative assistants to today's 400 employees working directly for the president in the White House office along with some 1,850 individuals staffing the Executive Office.

Enhances president's capacity to gather information, plan programs and strategies, communicate with constituencies, and exercise supervision of the executive branch.
Office of Management and Budget (OMB)
Most important and largest EOP agency.

Prepares the national budget, designs the president's program, reports on agency activities, and oversees regulatory proposals making it part of virtually every conceivable presidential responsibility.
Has power to analyze and approve all legislative proposals emanating from federal agencies before being submitted to Congress.
The Vice Presidency
Two purposes:
1) To succeed the president in the case of a vacancy and
2) To preside over the Senate, casting the tie-breaking vote.

Main value as a political resource for the president is electoral.
Important for them to bring support from one state (preferably a large one) that wouldn't otherwise support the ticket.
Should come from a different region than the presidential nominee.
Many president's use them as a management resource after elections and sometimes play a liaison role to Congress or international representative for the president.
Ways Presidents can Expand Their Power
1) Party, 2) Popular mobilization, 3) Administration.
Party as a Source of Power
All presidents have relied on the members and leaders of their own party to implement their legislative agendas.
Party members have considerable autonomy.

The more unified the president's party is behind is legislative requests, the more unified the opposing party is likely to be.
Must also appeal to the opposing side to make up for inevitable defectors within their own party.
Often poses being above partisanship to win "bipartisan" support in Congress, but cannot throw himself fully into building party loyalty to maximize party's support.
Going Public
Modern presidents' use of the mass media to appeal directly to the electorate for support on a particular issue; critics claim that this has led to a permanent campaign in the presidential leadership. No longer used as frequently (decline in public appearances); rely on image polishing.

Popular support isn't a firm foundation of presidential power; presidents generate popular support by promising to undertake important programs that will contribute to the well-being of many Americans and almost inevitably, their performance falls short of their promises and popular expectation leading to decline in support.
Administrative Strategies
Three strategies contemporary presidents have increased the administrative capabilities of their office (often allow them to achieve policy goals without congressional approval):
1) Enhancing the reach and power of the EOP.
2) Sought to increase White House control over the federal bureaucracy.
3) Expanding the role of executive orders and other instruments of direct presidential governance.
Appointments and Regulatory Review
One way president's have sought to increase influence.
By appointing loyal supporters to top jobs in the bureaucracy, the presidents make it more likely that agencies will follow the president's wishes.

Presidents have tried to control rule making by the agencies of the executive branch.
Executive Orders
Must issue order under the powers granted to him by the Constitution or delegated by Congress.

Generally state constitutional or statutory basis for their actions.

Ex. Youngstown Sheet & Tube Co. vs. Sawyer: Supreme court ruled Truman's seizure of nation's steel mills during Korean War had no statutory or constitutional basis was invalid.
Signing Statement
Announcement made by president when a bill is signed into law

Used as to negate congressional action to which they objected; recent presidents have made frequent use of signing statements when signing bills into law.
The "Hats" Theory
President has a number of different functions:
1) Formal Top Hat: acting as Head of State.
2) Straw Hat: campaigning; acting as head of his party.
3) Negotiates with legislature.
The Two Presidencies Theory (Wildavsky)
The American presidency has grown immensely since time of the Constitution because of the growth of the president's responsibility in foreign policy.

The longer a president has been in office, the more time they spend on foreign policy. This is because he doesn't have to go to Congress as much when negotiating with foreign leaders. Foreign policy has had biggest growth (domestic policy has expanded too).
The Sub-Presidencies Theory (Cronin)
See chart in notes 2-6.
The Presidential Power Theory (Neustadt)
Thinking of the president's power (formal powers) constitutionally is inaccurate. President's power is to persuade and bargain; not to command (American system is one of shared, not separated powers).

Sources of President's power:
1) The position
2) Professional reputation (critical for shaping how effective he is).
3) Public prestige: focuses a lot of attention on marshaling popularity behind pieces of legislation.
Must be careful to use reputation and prestige wisely, or else you dissipate. Cannot go public on every issue; pick and choose fights (don't pick a fight unless you can win).

President is often more constrained in the executive branch than when he goes to Congress to propose things.
The Presidential Character Theory (Barber)
How the president's character affects his performance in office.
-World View (positive v. negative): humans are predisposed to be good and history is on an upward trajectory vs. you can't trust anyone, world is unfair, etc.
-Style (active v. passive)
Active: takes hands on approach, likes to make decisions themselves, like to be educated on arguments and know everything.
Passive: content to delegate, don't have problem being CEO, people bring information to you and you make decisions.

Presidents can change throughout their terms.
Not so black and white, many are not just positive or negative.
Additional components to personality not seen here.
Active-Positve
Preferred presidential candidate.
Franklin D. Roosevelt, Teddy Roosevelt, Bill Clinton, John Kennedy, George Bush.
Passive-Positive
Ronald Reagan, Dwight Eisenhower.
Active-Negative
Lyndon B. Johnson, Richard Nixon.
Passive-Negative
Coolidge, Harding.
Pyramid Structure
President at the top, a few key advisors who talk to others (hierarchical structure); most traditional.

Downside: these handful of sources could have their own agendas.
Hub of the Wheel Structure
Associated with Franklin Roosevelt and Kennedy. President is at the center and talks to lots of people (the hub).

Downside: president is subjected to too many points of view and too many people.
Rasputin Structure
President has chief of staff who is critically important to controlling the schedule and access to the president.

Some argue Nixon has "rasputins"; some argued Reagan really relied on chief staff.
Criminal Law
The branch of law that deals with disputes or actions involving criminal penalties (as opposed to civil law).

Mostly arise in state and municipal courts and involve matters ranging from traffic offenses to robbery and murder. A growing body of federal criminal law deals with such matters as tax evasion, mail fraud, and the sale of narcotics.
Civil Law
A system of jurisprudence, including private law and governmental action, for settling disputes that do not involve criminal penalties (no criminal violation is charged).

The one who brings the complaint is the plaintiff and the one against whom the complaint is brought is the defendant.
Two most common types involve contracts (failing to honor an agreement to deliver something on time causing one to lose business and wanting to be compensated) and torts (ex. medical malpractice).
Precedents
Prior cases whose principles are used by judges as the bases for their decisions in present cases.
Stare Decisis
Literally, "let the decision stand." The doctrine whereby a previous decision by a court applies as a precedent in similar cases until that decision is overruled.
Public Law
Cases involving the action of public agencies or officials.
Trial Courts
The first court to hear a criminal or civil case.
Court of Appeals (Appellate Court)
A court that hears the appeals of trial-court decisions.
Supreme Court
The highest court in a particular state or in the U.S. This court primarily serves an appellate function.
Jurisdiction
The domain over which an institution or member of an institution has authority.
Due Process
The guarantee that no citizen may be subjected to arbitrary action by national or state government.
Writ of Habeas Corpus
A court order demanding that an individual in custody be brought into court and shown the cause for detention. Habeas corpus is guaranteed by the Constitution and can be suspended only in cases of rebellion or invasion.
Chief Justice
The justice on the Supreme Court who presides over the Court's public sessions.
Senatorial Courtesy
The practice whereby the president, before formally nominating a person for a federal judgeship, finds out whether the senators from the candidate's own state support the nomination.
Judicial Review
The power of the courts to declare actions of the legislative and executive branches invalid or unconstitutional. The Supreme Court asserted this power in Marbury v. Madison.
Supremacy Clause
A clause of Article VI of the Constitution that states that laws passed by the national government and all treaties are the supreme laws of the land and superior to all laws adopted by any state or any subdivision.
Standing
The right of an individual or an organization to initiate a court case.
Mootness
A criterion used by courts to avoid hearing cases that no longer require resolution.
Amicus Curiae
"Friend of the court," an individual or group who is not a party to a lawsuit but seeks to assist the court in reaching a decision by presenting an additional brief.
Brief
A written document in which an attorney explains- using case precedents- why a court should rule in favor of his or her client.
Oral Argument
The stage in Supreme Court proceedings in which attorneys for both sides appear before the Court to present their positions and answer questions posed by the justice.
Opinion
The written explanation of the Supreme Court's decision in a particular case.
Dissenting Opinion
A decision written by a justice who voted with the minority opinion in a particular case, in which the justice fully explains the reasoning behind his or her opinion.
Judicial Restraint
The judicial philosophy whose adherents refuse to go beyond the text of the Constitution in interpreting its meaning.
Judicial Activism
The judicial philosophy that posits that the Court should see beyond the text of the Constitution or a statute to consider broader societal implications for its decisions.
Class-Action Suit
A lawsuit in which a large number of persons with common interests join together under a representative party to bring or defend a lawsuit, as when hundreds of workers join together to sue a company.
National Supremacy and Slavery (1787-1865)
1) Marbury v. Madison
2) McCulloch v. Maryland
3) Dred Scott v. Sanford
Marbury v. Madison (1803)
John Adams lost election of 1800 to Jefferson and before he left office, made several appointments to put federalists into positions of power in executive branch (MIdnight Appointments). Some of these didn't get notarized by Secretary of State.

Marbury was one of the men who was supposed to be appointed to a federal position and sues Madison saying he had to sign his commission.
Marbury wanted courts to pass the writ of mandamus which Jefferson couldn't ignore.

Supreme Court claims they can't in this case because of the Judiciary Act of 1789 allowing them to do so is unconstitutional because it expands the court's original jurisdiction of the Supreme Court.
Concept of judicial review est.
McCulloch v. Maryland (1819)
State of Maryland attempted to tax the bank of the U.S.
Maryland's defense was 1) U.S. doesn't have right to establish a U.S. bank and 2) if U.S. does have this right, the state has the right to tax the bank.

Chief Justice rules against Maryland on both points:
1) Necessary and proper clause
2) Supremacy clause
"The power to tax is the power to destroy"
Dred Scott v. Sanford (1857)
Dred Scott was a slave owned by a man in Missouri (Sanford) who brought him to Illinois, a free state, and then decided to move back to Missouri.
Made the argument that he was a free citizen of Illinois.

Chief Justice Tawney: blacks are not citizens of the U.S. and could not become one no matter where they lived. In fact, it is unconstitutional to give them freedom.
Pro-Business Decisions (1865-1937)
Court prevented labor strikes, struck down federal income tax, restricted powers of the ICC to regulate railroad rates, prevented maximum hours laws on employers.
Anti-Business Decisions (1865-1937)
Court upheld laws affecting public works, allowed regulation of business through government agency, approved railroad safety rules, approved states' anti-liquor laws, approved mine safety laws.

Denied claims to minorities.
Conflict Between Personality Liberty and Social Equality (1937-Present)
Began with the New Deal and Roosevelt's "court packing scheme".
Began upholding FDR's new deal programs whereas the courts used to not care about public opinion.

Rights Established: expanded freedom of speech, religious, and political expression, expanded rights of the accused (right to counsel, evidentiary restrictions concerning search and seizure and what constitutes admissible evidences, rights against self-incrimination), voting rights, rights against discriminatory treatment.

Roe v. Wade (right to privacy).
Johnson v. Texas (free speech); flag burning case.

Took place under Warren Courts.
Three Ways Cases Come to the Supreme Court
1) Original Jurisdiction
2) Appellate jurisdiction
3) Writs of certiorari
Original Jurisdiction
Cases involving two or more states, cases involving a state vs. the U.S., a citizen of one state that is being prosecuted by another state (not the other way around).
Appellate Jurisdiction
If federal law and state law conflict, if a state law is found to be unconstitutional and that U.S. was a party to the suit.
Writ of Certiorari
A formal request by an appellant to have the Supreme Court review a decision of a lower court. Certiorari is from a Latin word meaning "to make more certain."

4/9 must agree to take the case. Almost all of these cases involve a substitute federal request and without this, writ of certiorari will not be granted. Only way they will take it is if its already reached the highest state court or the Federal Court of Appeals.
U.S. District Courts
One each in 94 districts; at least one per state.

Only original jurisdiction.
Hear the vast majority of federal cases.
Any case involving a federal crime: mail fraud, involving state lines/boundaries, piracy, any civil lawsuit under federal law over $10,000, civil lawsuits between citizens of different states, maritime cases, bankruptcy cases, and cases involving administrative agency's reviews.
U.S. Courts of Appeals
One each in eleven circuits.

Takes cases on appeal, arise under the Federal District Courts.
A case involving a U.S. regulatory commission.
Takes cases from other federal courts.
There must be legal grounds for the appeals.
The Supreme Court in Action
In session for 36 weeks (early October through June).

Lawyers present briefs and get one hour to argue. Each side has an hour of oral argument; justices interrupt consistently with questions.

Federal government involved in 50% of cases; solicitor general who argues cases in front of Supreme Court.

On Fridays, justices go to conference to discuss cases they have heard that week. Preliminary vote is not binding (can change).
They then write out majority opinion, concurring opinions, and dissenting opinion (minority).

Most decisions run parallel to the ideological blocks on the Court.
Court has 9 members; swing vote is Kennedy.
Limitations on the Court
1) The Constitution: court appointed by the president. Primary power is the judicial review.
2) Precedent (stare decisis): example overturns separate but equal, but takes them 50 years.
3) "Political Questions"
The Court does not like dealing with political questions and will try to kick them back to the branches.
Example: districting arrangements; when it comes to racial gerrymanders, the Court will intervene but when it comes to political gerrymanders, they will defer to the state.
4) Inability to enforce its own decisions.
5) Necessity for public acceptance.
6) The "Ultimate Limitations": impeachment and Congress has the authority to alter size of the Courts.
Bush v. Gore
State of Florida; Bush carried 1800 votes and Gore campaign demanded recount in 4 counties, Bush argued you can't do selective recount. Florida State Supreme Court didn't find anything wrong with this and the Supreme Court decided to take the case.
Six Flags of Texas
Spain, Mexico, Republic of Texas, Confederates of America, United States, Texas Flag.
Texas Constitution
Ratified in 1876; passed in 130/150 counties (20 against it were all urban).

Numerous amendments (unlike U.S.); 600 proposed amendments and about 400 have been adopted
Similarities with the U.S. Constitution
Both want to organize and limit government.
Both want the notion of legitimacy in the same way; both clearly believe the power of government lies in the power of the people and that anything that violates that is illegitimate.
Both include a Bill of Rights. However, in the U.S. Constitution, it has 8 rights plus the 9th and 10th. The Texas Constitution has 30 elements to the Bill of Rights, but are more expansive and explicitly stated.
Dissimilarities with the U.S. Constitution
Texas Constitution limits the government's ability to govern.
Legislative Branch
150 members of House of Representatives in Texas gvt.; terms are up every 2 years (like Congress).
150 districts with about 127,000 people
Must be 21 years old and have been a resident of state for at least 2 years.

31 members of Texas Senate; staggered terms 1/2 up for election 2012 and 1/2 up for election in 2014. After redistricting, they draw straws to see who's seat is up for election.
Each district represents about 617,000.
Senators must be 26 years old
Sessions
Meets on the Second Tuesday of January on odd numbered years and lasts for 140 days.
Governor can call for a special session and can continue to call for these 30 day sessions for as long as they want.
Recesses for summer, fall elections, and Christmas.

Texas legislature is non-professional; they don't have big budgets, income is close to $7,200.
Executive Branch
All independently elected (not elected by the governor).

Governor, lieutenant governor, comptroller, the land commissioner, attorney general, railroad commissioner, agriculture commissioner, and state board of education.
Governor
Must be at least 30 years old and have been a resident of the state for at least 5 years; term is 4 years as well as the Texas Senate.
Lieutenant Governor
Presides over the Texas Senate; much more forceful role than the vice president; has a say in committee assignments and has a role in agenda control. Government does not have to delegate powers to him/her if they don't like them.
Comptroller
Collects taxes and determines if there is enough revenue in the system to fund the budget (budget director).
The Land Commissioner
Protects the state's environment and administering the public lands in the state of Texas.
Attorney General
The state's lawyer.
Railroad Commissioner
Regulates intrastate transportation, but mainly manages oil and gas reserves in the state.
Judicial Branch
Has 5 distinctive features:
1) There is a confusing pattern of at least 6 different types of courts in Texas.
2) Each level of trial court has overlapping jurisdiction with another kind of court; intentionally redundant. There are 2 courts that could hear a case for the same offense.
3) Judges don't have to have legal training to be a justice of the peace or to sit on a county bench.
4) Most of our judicial nominees are elected.
5) Multiple government jurisdictions in a given area.
Reforms
A lot of people would like us to have an extended biennial legislative sessions (would involve increasing salaries and staff in order to do so).

Streamline the judicial system; eliminate the courts that have overlapping jurisdictions.

Unify and expand executive control; allow the governor to choose people that will work with him in the executive branch.

Expand ordinance power to the cities and counties. Example: if the City of Austin wanted to ban smoking, they'd have to get state legislature to make a constitutional amendment.

Remove the excessive amendments to the Constitution that are better understood by statutory law.
Domestic Policy
Regulation, protection for Americans at home and abroad, encouraging social goals, assisting a wide range of social groups.
Regulatory Policy
Involve the use of police powers by the federal government to supervise the conduct of individuals, businesses, and other government.
Social Welfare Policy
Involves use of positive incentives to promote or encourage social or economic fairness.

Gender or race equity; government rewards businesses for enforcing these policies.
Entitlements
Social security, Medicare/Medicaid.
If you meet certain criteria, you will get benefits and cash payments.

The eligibility for benefits by virtue of a category of benefits defined by law. Categories can be changed only by legislation; deprivation of individual benefits can be determined only through due process in court.
Means-Tested Policies
Sub category for social welfare and entitlements.

A procedure that determines eligibility for government public-assistance programs. A potential beneficiary must show a need and an inability to provide for that need.
The Domestic Policy Cycle
1. Starts with the redefinition of a condition, issue, or problem as a public problem (example: poverty); convincing people that this is not just a personal problem, but a public problem.
2. Problem must be defined as part of the national agenda.
3. Emergence of a problem that is connected with a specific issue requiring federal government action.
• Example: obesity; focusing on childhood obesity and diet, etc. (more specific issues).
4. Formulation of specific public policies.
• Specific policies designed to address these specific issues addressed in step 3.
5. Reformulation of specific policies based on how relevant people respond to these policies.
6. Placement of proposed policies on the formal agenda of government.
• Congressional legislation (most obvious example)
7. Enactment (or rejection) of all or part of the proposal.
8. The implementation of the policies (not enough to just get it through Congress).
9. The assessment of impact of the policy.
10. The termination or continued implementation of the program.
Economic Policy
A policy that's goal is to introduce a vibrant and healthy growing economy.

Fiscal policy, monetary policy, regulatory policy, and international economic policy.
Fiscal Policy
Dealing with government budgetary choices, especially how much and whom to tax, spending, subsidizing, and borrowing.

The government's use of taxing, monetary, and spending powers to manipulate the economy.
Monetary Policy
Actions taken by the Federal Reserve Board. Especially deals with interest rates and attempting to influence gross domestic products and the rate of inflation.
Regulatory Policy
Regulation of businesses and the workplace.
International Economic Policy
Involves exchange rates, trade negotiations, tariffs, international institutions (world bank, world trade organization, IMF).
Laissez-Faire
"Hands off"; Adam Smith.
What government should do to promote economic growth is get out of the way. Don't tax much or regulate much, etc.
Keynesianism
Associated with John Maynard Keynes.
You want to have government policy that attempts to affect aggregate demand (total demand for goods in the economy at a time and price) through fiscal policy (taxes and spending).

Involves stimulus spending; the government spends money. Government takes tax dollars and creates projects and jobs, people get jobs and money, then they spend their money on other products.
Monetarism (Federal Reserve System)
Based on the belief that government policies destabilize the economy and must combated through controlling the money supply.

Manipulate interest rates which affect how people spend and save.

Lower interest rates: people have an incentive to borrow.
Fed fears inflation; they will try to restrict spending by raising interest rates to prevent this.

Can also manipulate the amount of money the banks have in their reserves.
Supply-Side Economics
Theory that it's not so much aggregate demand you want to influence, it's supply. When you have a recession, you cut tax rates. Increase in supply lowers prices to the point where people are tempted to buy them.
Externalities
The differences between the private cost and the social cost of economic behavior.
Monopoly
The existence in a market of a single firm that provides all the goods and services of that market; the absence of competition.
Public Good
A good that may be enjoyed by anyone if it is provided and may not be denied to anyone once it has been provided.
Gross Domestic Product (GDP)
The total values of goods and services produced within a country.
Categorical Grant-In-Aid
A grant by Congress to states and localities given with the condition that expenditures be limited to a problem or group specified by the national government.
Monetary Policies
Policies that control the supply of money, the price of money (interest rate), and the availability of credit.
Federal Reserve System
Consisting of 12 Federal Reserve Banks, an agency that facilitates exchanges of cash, checks, and credit; it regulates member banks; and it uses monetary policies to fight inflation and deflation.
Discount Rate
The interest rate charged by the Federal Reserve when commercial banks borrow in order to expand their lending operations; an effective tool of monetary policy.
Reserve Requirement
The amount of liquid assets and ready cash that the Federal Reserve requires banks to hold to meet depositors' demands for their money.
Open-Market Operations
The process by whereby the Open Market Committee of the Federal Reserve buys and sells government securities, etc. to help finance government operations and to reduce or increase the total amount of money circulating in the economy.
Federal Funds Rate
The interest rate on loans between banks that the Federal Reserve Board influences by affecting the supply of money available.
Progressive Taxation
Taxation that hits the upper income brackets more heavily.
Regressive Taxation
Taxation that hits the lower income brackets more heavily.
Budget Deficit
The amount by which government spending exceeds government revenue in a fiscal year.
Mandatory Spending
Federal spending that is made up of "uncontrollables," budget items that cannot be controlled through the regular budget processes.
Uncontrollable
A budgetary item that is beyond the control of budgetary committees and can be controlled only be controlled only by substantive legislative action in Congress. Some uncontrollables, such as the interest on the debt, are beyond the power of Congress because the terms of payments are set in contracts.
Discretionary Spending
Federal spending on programs that are controlled through the regular budget process.
Subsidy
A government grant of cash or other valuable commodities, such as land, to an individual or an organization; used to promote activities desired by the government, to reward political support, or to buy off political opposition.
Contracting Power
The power of government to set conditions on companies seeking to sell goods or services to government agencies.
Contributory Program
A social program financed in whole or in part by taxation or other mandatory contributions by its present or future recipients. The most important example is Social Security, which is financed by a payroll tax.
Social Security
A contributory welfare program into which working Americans contribute a percentage of their wages and from which they receive cash benefits after retirement.
Indexing
The process of periodically adjusting social benefits or wages to account for increases in the cost of living.
Medicare
National health insurance for the elderly and for the disabled.
Noncontributory Program
A social program that assists people based on demonstrated need rather than any contribution they have made. Also known as public assistance program.
Aids to Families with Dependent Children (AFDC)
Federal funds for children in families that fall below state standards of need. Congress abolished AFDC and replaced it with the Temporary Assistance to Needy Families (TANF) block grant.
Medicaid
A federally financed, state-operated program providing medical services to low-income people.
Supplemental Security Income (SSI)
A program providing a minimum monthly income to people who pass a "means test" and who are 65 or older, blind, or disabled. Financed from general revenues rather than from Social Security contributions.
Food Stamps
The largest in-kind benefits program, administered by the Department of Agriculture, providing coupons to individuals and families who satisfy a means test. Food stamps can be exchanged for food at most grocery stores.
In-Kind Benefits
Goods and services provided to needy individuals and families by the federal government.
Non-State Actors
A group other than a nation-state that attempts to play a role in the international system. Terrorist groups are one type of non-state actor.
Deterrence
The development and maintenance of military strength as a means of discouraging attack.
Preventive War
The policy of striking first when a nation fears that a foreign foe is contemplating hostile action.
Appeasement
The effort to forestall war by giving in to the demands of hostile power.
Cold War
The period of struggle between the U.S. and the former Soviet Union between the late 1940s and about 1990.
Preemption
The principle that allows the national government to override state or local actions in certain policy, the willingness to strike first in order to prevent an enemy attack.
Bush Doctrine
A foreign policy based on the idea that the United States should take preemptive action against threats to its national security.
Most Favored Nation Status
An agreement to offer a trading partner the lowest tariff rate offered to other trading partners.
World Trade Organization (WTO)
The international trade agency promoting free trade that grew out of the General Agreement on Tariffs and Trade.
General Agreement on Tariffs and Trade (GATT)
The international trade organizaiton in existence from 1947-1995, that set many of the rules governing international trade.
North American Free Trade Agreement (NAFTA)
A trade treaty among the U.S., Canada, and Mexico to lower and eliminate tariffs among the three countries.
Diplomacy
The representation of a government to other foreign governments.
United Nations (UN)
An organization of nations founded in 1945 to be a channel for negotiation and a means of settling international disputes peaceably. The UN has had frequent successes in providing a forum for negotiation and on some occasions a means of preventing international conflicts from spreading. On a number of occasions, the UN has been a convenient cover for U.S. foreign policy goals.
International Monetary Fund (IMF)
An institution established in 1944 that provides loans and facilitates international monetary exchange.
North Atlantic Treaty Organization (NATO)
A treaty organization comprising the U.S., Canada, and most of Western Europe, formed in 1949 to counter the perceived threat from the Soviet Union.
Bilateral Treaty
A treaty made between two nations.
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