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Poli Sci Exam 2 PT 1

Terms in this set (25)

What is the current unemployment rate?
As of June 2020 - 11.1%
What is the labor force participation rate?
61.5%
What is the difference between the two?
calculated by collecting unemployment.
deficit
An excess of federal expenditures over federal revenues.
Debt
The cumulative total amount of money owed due to yearly operating deficits.
What is the current debt?
as of July 2020 - $26.5 trillion.
What is the debt-to-GDP ratio?
Debt percentage of GDP = 123%
What are some of the dangers of large debt
- Limitation of choices
- Tax increases, discouraging production (reducing revenue and exasperating the problem)
- Debt inflation: how does a larger debt cause inflationary pressure? (Ex:Zimbabwe)
- negative impact on economic growth (90% tipping point)
- Investor confidence
Baseline Budgeting
Congress uses the baseline budgeting process whereby approximately 7.5% to 8% growth rate to spending is built in the budgeting process.
Zero-based budgeting
a budgeting approach in which each department starts from zero every year and must justify every item in the budget, rather than simply adjusting the previous year's budget amounts
What role does the OMB play in the budgetary process?
-Builds budget on requests from agencies
- requests excessive budgets
How many federal programs are devoted to fighting poverty?
- 126 overlapping federal programs to fight poverty.
EX: 33 housing, 26 food or food purchasing assistance programs, 8 healthcare programs, 27 cash programs.
How much federal spending is devoted to fighting poverty?
$1.03 trillion a year
federal spending
One way of spending is entitlements,a payment required by lawgiven to people meeting particularly eligible requirements.National defense is another way money is spent, in which a large amount of the budget is sent to military defense. Lastly, money is spent paying off the national debt.
poverty rate
the percentage of people who live in households with income below the official poverty line
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