An economic system in which individuals and corporations, not the government, own the principle means of production, and wages and prices are set by supply and demand.
The Federal Reserve BoardSets discount rates (the interest rate to borrow money from the government)
Sets reserve requirements (how much money banks must have on hand)
Buying / selling government bondsFiscal Policy:the impact of the federal budget on the economy.Keynesian Economic TheoryGovernment spending and willingness to run a deficit help the economy weather its normal ups and downs.Keynesianism supportsgovernment efforts to increase the number of jobs and the demand for goodsSupply-Side policyThe theory that high taxes and too much government regulation stifle economic growth.Reduce taxation and government regulation so thatpeople will work harder and businesses can reinvest profits, stimulating economic growth.Food and Drug Administration:Created in 1913 and approves and regulates food and drugs sold in the U.S.Federal Trade CommissionRegulates false and misleading trade practices, which now includes consumer lending practices.Taft-Hartley Actanti-union legislation that allows states to pass "right to work" laws. Employees cannot be required to join a union even in unionized companies.Collective bargainingunion representatives and management determine pay and working conditionsNational Labor Relations Boardregulates labor-management relationsEntitlement programsGovernment benefits that certain qualified individuals are entitled to by law, regardless of need. This includes Social Security and Medicare.Means-tested programsGovernment programs only available to individuals below the poverty line. This includes -Temporary Assistance for Needy Families - and Medicaid.Incomeamount of funds collected between any two points in time.Wealthamount of assets already owned.Poverty Line:what a family must spend for an "austere" standard of livingProgressive tax:people with higher incomes pay a greater percentage.Proportional tax:all people pay the same percentage of their income.Regressive taxthe poor pay a higher percentage of their income than the richEarned Income Tax Credit"negative income tax" that provided income to very poor people in lieu of charging them income tax (Increased by Clinton)Food Stamp ProgramRepublicans have been behind some of the more prominent calls formeans-testing the wealthy.The Welfare Reform Act1996 law that established the Temporary Assistance for Needy Families program in place of the Aid to Families with Dependent Children program and tightened Medicaid eligibility requirementsBush increasedincrease government spending on MedicareThe Great SocietyJohnson declared a "war on poverty."
Medicaid, school-aid programs and welfare were created.
Other programs were designed to provide training and jobs, not just transfer paymentsThe Social Security Act of 1935was the first major step by the federal government to help protect people against absolute poverty.in kind" benefitswhere recipients get a benefit without receiving actual money.undeserving poorindexingmeans testingFederal Reserve Boardmoral hazardLaissez-fairemonetarismMedicare/Medicaid National Defense Edu
