58 terms

AP Gov Chapters 16, 17 & 18

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Social Welfare Policies
Policies that provide benefits to individuals, either through entitlements or means testing
Unemployment Rate
As measured by the Bureau of Labor Statistics, the proportion of the labor force actively seeking work but unable to find jobs
Underemployment Rate
as measured by the Bureau of Labor Statistics, a statistic that includes, along with the unemployed, discouraged workers and people who are working people who are working part-time because they cannot find full-time work
Inflation
A continuous rise in the price of goods and services
Consumer Price Index
A key measure of inflation - the change in the cost of buying a fixed basket of goods and services
Laissez-Faire
Idea that government should play as small a role as possible in economic affairs
Monetary Policy
Government policy that attempts to manage the economy by controlling the money supply and thus interest rates
Monetarism
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
Federal Reserve System
A national banking system, created in 1913, that controls the United State money supply and the availability of credit
Fiscal Policy
Government policy that attempts to manage the economy by controlling taxing and spending (taxes)
Keynesian Economic Theory
The theory emphasizing that government spending and deficits can help the economy weather its normal ups and downs; proponents of this theory advocate using the power of government to stimulate the economy when it is lagging
Supply-Side Economics
An economic philosophy that holds the sharply cutting taxes will increase the incentive people have to work, save, and invest; greater investments will lead to more jobs, a more productive economy, and more tax revenues for the government
Entitlement Programs
Government benefits that certain qualified individuals are entitled to by law, regardless of need
Means-Tested Programs
Government programs available only to individuals below a poverty line
Income Distribution
The way all the income earned in a country is divided among different groups of income earners
Relative Deprivation
A perception by an individual that he or she is not doing well economically in comparison to others
Income
Money earned from investments and employment
Wealthy
Value of assets owned
Poverty Line
A method used to count the number of poor people, it considers what a family would need to spend for an "austere" standard of living
Feminization of Poverty
The increasing concentration of poverty among women, especially unmarried women and their children
Progressive Tax
A tax in which the average tax rate rises with income; people with higher incomes will pay a higher percentage of their income in taxes
Proportional Tax
A tax by which the government takes the same share of income from everyone, rich and poor alike for example, when a rich family and a poor family and a poor family both pay 20%
Regressive Tax
A tax in which the burden falls relatively more heavily on low-income groups than on wealthy taxpayers; the opposite of a progressive tax, in which tax rates increase as income increases
Earned Income Tax Credit
A "negative income tax" that provides income to very poor individuals in lieu of charging them federal income taxes
Transfer Payments
Cash payments made by the government to people who do not supply goods, services, or labor in exchange for these payments; they include Social Security benefits, veterans' benefits, and welfare payments
Personal Responsibility and Work Opportunity Reconciliation Act
The 1996 federal law that transferred responsibility for welfare programs from the federal level to the state level and placed a five-year lifetime limit on payment of afdc benefits to any given recipient
Temporary Assistance for Needy Families
Federal legislation that replaces Aid to Families with Dependent Children and whereby government welfare assistance to poor parents is limited to five years for most families with most adult recipients required to find work within two years
Social Security Trust Fund
The "bank account" into which Social Security contributions are "deposited" and used to pay out eligible recipients
Social Security Act of 1935
Created both the Social Security Program and a national assistance program for poor children, usually called AFDC
Health Maintenance Organization
Organization contracted by individuals or insurance companies to provide health care for a yearly fee; such network health plans limit the choice of doctors and treatments; about 60 percent of Americans are enrolled in them or similar programs
Medicare
A federal program of health insurance for persons 65 years of age and older (1965)
Medicaid
A public assistance program designed to provide healthcare to poor Americans
National Health Insurance
A compulsory insurance program for all Americans that would have the government finance citizens' medical care; first proposed by President Harry S. Truman, the plan was soundly opposed by the American Medical Association
Environmental Protection Agency
An independent federal agency established to coordinate programs aimed at reducing pollution and protecting the environment (1970)
National Environmental Policy Act
Promotes enhancement of the environment and the set up of procedural requirements regarding statements of environmental effects and proposed actions
Environmental Impact Statement
Statement required by Federal law from all agencies for any project using Federal funds to assess the potential affect of the new construction or development on the environment
Clean Air Act of 1970
The law that charged the Department of Transportation with the responsibility to reduce automobile emissions
Water Pollution Control Act of 1972
Provided funds to build sewage treatment facilities and required industries to remove or treat pollution in water discharged to a lake or stream
Endangered Species Act of 1973
Law that requires the government to protect endangered species regardless of economic impact
Superfund
A fund created by Congress in 1980 to clean up hazardous waste sites; money for the fund comes from taxing chemical products
Global Warming
An increase in the average temperature of the earth's atmosphere (especially a sustained increase that causes climatic changes)
Foreign Policy
A policy that involves choice taking, like domestic policy, but additionally involves choices about relations with the rest of the world
United Nations
An international organization whose stated aims are to facilitate co-operation in international law, international security, economic development, social progress and human rights issues; it was founded in 1945 at the signing of the United Nations Charter by 50 countries, replacing the League of Nations, founded in 1919
North Atlantic Treaty Organization
1949 alliance of nations that agreed to band together in the event of war and to support and protect each nation involved
European Union
An international organization of European countries formed after World War II to reduce trade barriers and increase cooperation among its members
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 and a key foreign policy actor
Joint Chiefs of Staff
High-ranking military officers who represent the Navy, Army, Air Force and Marines; they assist the civilian leaders of the Department of Defense-advise the president on security matters
Central Intelligence Agency
An agency created after World War II to coordinate American intelligence activities abroad; it became involved in intrigue, conspiracy, and meddling as well
Isolationism
A foreign policy course followed throughout most of our nation's history, whereby the United States has tried to stay out of other nations' conflicts, particularly European wars (Monroe Doctrine)
Containment Doctrine
A foreign policy strategy advocated by George Kennan that called for the United States to isolate the Soviet Union, "contain" its advances, and resist its enroachments by peaceful means if possible, but by force if necessary
Cold War
A conflict that was between the US and the Soviet Union; the nations never directly confronted each other on the battlefield but deadly threats went on for years
Arms Race
A tense relationship beginning in the 1950s between the Soviet Union and the United States whereby one side's weaponry became the other side's goad to procure more weaponry, and so on
Detente
(1972-1979) a policy of reducing Cold War tensions that was adopted by the United States during the presidency of Richard Nixon
Interdependency
Mutual dependency, in which the actions of nations reverberate and affect one another's economic lifelines
Tariff
A special tax added to imported goods to raise the price, thereby protecting American businesses and workers from foreign competition
Balance of Trade
A basic measure (ratio) of the difference in value between a nation's exports and imports, including both goods and services
Organization of Petroleum Exporting Countries
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