24 terms

Ch 13 Domestic Policy

Vocabulary from American Government and Politics Today Brief Edition.
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Domestic Policy
All government laws, planning, and actions that concern internal issues of national importance, such as health care, poverty, crime, and the environment.
Regulatory Policy
Policy to determine what is and is not legal. Ex. Speed Limits.
Redistributive Policy
Policy that transfers income from certain individuals or groups to others, often based on the belief that these transfers enhance fairness. Ex. Social security, medicare, medicaid.
Promotional Policy
Policy that seeks to foster or discourage various economic or social activities, typically through subsidies and tax breaks. Ex. Tax credit for buying a fuel efficient car.
Process of Policymaking
1. Agenda Building
2. Policy Formulation
3. Policy Adoption
4. Policy Implementation
5. Policy Evaluation
Moral Hazard
The danger that protecting an individual or institution from the consequences of failure will encourage excessively risky behavior.
Gross Domestic Product (GDP)
the total value of final goods and services produced in a country in a given year
Medicare
Federal government program that pays for certain health care expenses for citizens 65 or older;managed by the Social Security Administration. The costs are met by a tex on wages and salaries.
Medicaid
A combination federal and state medical assistance program designed to provide comprehensive and quality medical care for low-income families with special emphasis on children, pregnant women, the elderly, the disabled, and parents with dependent children who have no other way to pay for healthcare. Coverage varies from state to state. The program is funded out of general government revenues.
National Health Insurance
A plan under which the government provides basic health insurance to all citizens. In most such plans, the program is funded by taxes on wages or salaries.
Recession
An economic downturn marked by a decrease in the GDP and increase in unemployment.
Unemployment
The inability of those who are in the labor force to find a job; defined as the total number of those in the labor force actively looking for a job but unable to find one.
Inflation
a general increase in the cost of goods and services
Fiscal Policy
the federal government's use of spending and taxation policies to affect overall business activity
Keynesian Economics
A school of economic thought that tends to favor active federal government policymaking to stabilize economy-wide fluctuations, usually by implementing discretionary fiscal policy.
Budget Deficit
the situation in which the government's expenditures are greater than its tax revenue
U.S. Treasury Securities
Bonds and bond-like securities issued by the U.S. Treasury when it borrows.
Public Debt, or National Debt
The total amount of debt carried by the federal government.
Federal Reserve System
The system created by congress in 1913 to establish banking practices and regulate currency in circulationand the amount of credit available
Federal Open Market Committee
The most important body within the Federal Reserve System. This decides how monetary policy should be carried out.
Monetary Policy
The utilization of changes in the amount of money in circulation to alter credit markets, employment, and the rate of inflation.
Loophole
A legal method by which individuals and businesses are allowed to reduce the tax liabilities they owe to the government.
Progressive Tax
tax where percentage of income paid in tax rises as level of income rises
Regressive Tax
Tax where percentage of income paid in tax goes down as income rises
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