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28 Cards in this Set
- Front
- Back
liberal - examples!
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favors active government, socially and economically liberal (marijuana legalization, graduated taxes) - generally young, white, college-educated, secular or Jewish
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conservative - examples!
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favors laissez faire government, socially and economically conservative (oppose estate taxes, favor military spending, criminals as examples rather than root causes) - generally wealthy, white, Christian, Midwestern
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populist - examples!
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socially conservative, economically liberal (would favor harsh punishments for criminals but graduated taxes) - generally poorly educated, female, South or Midwestern, low-income
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libertarian - examples!
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socially liberal, economically conservative (would favor marijuana legalization but flat taxes) - generally white, young, college-educated, non-religious
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Republican Party Tendencies
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1. Individual responsibility
2. Less government interference; government should only interfere on issues that individuals can not handle themselves 3. State and local government activity vs. federal 4. Cut back or eliminate unnecessary or overlapping Federal programs 5. Free enterprise will bring individual and national prosperity |
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Democratic Party Tendencies
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1. Group benefit over individual; society has collective responsibility
2. Less emphasis on individual enterprise and initiative 3. Urban and national problems sometimes make state and local government obsolete 4. Active role by Federal government 5. Economy must be managed at the Federal level |
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Social Security - definition and issues
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Tax everyone pays to benefit the elderly and handicapped after retirement; issues = longer life expectancy, earlier retirement, only four workers left for every retired person
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Medicare - definition and issues
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Tax everyone pays to support health care for the elderly and the poor (Medicaid), covers hospital expenses and doctor's bills. Issues = inefficient and expensive, unnecessary hospital service usage, doctors/hospitals overcharge government, doctors/hospitals paid by government approved plans that can change whenever the government wants to save money
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Solutions to Social Security
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1) Raise retirement age to seventy, freeze retirement benefits and raise social security taxes
2) Privatize social security (invest taxes in stock market) 3) First two plus invest taxes in mutual funds |
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Solutions to Medicare
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1) Eliminate Medicare, have doctors/hospitals work for the government
2) Elderly take Medicare money and buy health insurance from private suppliers 3) Spend money to prolong Medicare, add benefits, postpone the inevitable |
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Monetarism
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Conservative/libertarian - monetary policy, government should provide a steady supply of money and then leave the economy be
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Keynesianism
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Liberal/populist - fiscal policy, concerning levels of demand; government should fuel the economy with money when demand is too low and take money out when demand is too high
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Supply-Side Tax Cuts
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Conservative/libertarian - fiscal policy; tax cuts will help the economy and government in the long run (Laffer Curve); people pay less so more spending will occur
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Planning
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Socialist/pure liberal - fiscal policy; government should have regulations and controls on the economy; price and wage controls
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Fiscal policy
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government influence in the economy
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Monetary policy
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government influence in supply, availability and cost of money to stabilize the economy
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OMB
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Office of Management and Budget - prepare estimates of federal spending, negotiate with other departments on budget size, check proposals; analyzes spending and budget patterns, tries to accomplish president's wishes
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Reaganomics
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Combination of supply-side tax cuts, monetarism and budget cuts to stimulate the economy; decrease unemployment and increase military funding, reduce size of federal government
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CBO
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Congressional Budget Office - provides economic data and analysis to Congress
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Federal Reserve Board/System
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"The Fed" - regulate supply of money and price of money, buy and sell government securities, regulate on-hand bank money, change interest charged banks;
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Entitlement/Mandatory Spending
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Medicare/Medicaid, Social Security, veterans benefits; budgets are set by number of eligible recipients, not at discretion of Congress
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Discretionary Spending
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government planners can choose how much to spend on it, yearly decision, part of fiscal policy
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Cost of Living Adjustment
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annual adjustment in wages to offset a change in purchasing power measured by Consumer Price Index, offset inflation as experienced by the consumer
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Deficit
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annual excess of expenditures over revenues
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Debt
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accumulation of annual deficit
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Surplus
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excess of what is required
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Payroll taxes
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paid from an employer's own funds and withheld from employee's paycheck
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Capital Gains tax
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profit realizes on the sale of a non-inventory asset purchased at a lower price
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