Ap Nsl Public Policy Terms

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anti-trust laws

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Federal laws (starting with the Sherman antitrust Act of 1890) that try to prevent a monopoly from dominating an industry and restraining trade.

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Authorization Bill

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An act of Congress that establishes, continues, or changes a discretionary government program or an entitlement. It specifies program goals and maximum expenditures for discretionary programs. Compare appropriations bill.

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Balanced budget

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A government's annual budget in which receipts are equal to outlays. Only the federal government has the authority to engage in long-term deficit spending. State laws mandate a balanced budget. While a balanced federal budget is to be preferred, there are some advantages in having an "unbalanced budget." Deficit spending can provide extra funds to stimulate the economy and create jobs during an economic downturn. This benefit must be weighed against the dangers of large deficits, such as devaluation of the currency and inflation in the cost of goods and services.

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uncontrollable expenditure

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Expenditures that are determined by how many eligible beneficiaries there are for some particular program. According to Lance LeLoup, an expenditure is classified as uncontrollable "if it is mandated under current law or by a previous obligation." Three-fourths of the federal budget is uncontrollable. Congress can change uncontrollable expenditures only by changing a law or existing benefit levels.

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block grants

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These are broad state grants to states for prescribed activities—welfare, child care, education, social services, preventive health care, and health services—with only a few strings attached. States have greater flexibility in deciding how to spend block grant dollars, but when the federal funds for any fiscal year are gone, there are no more matching federal dollars.

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budget resolution

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Set of budget guidelines that must pass both houses of Congress in identical form by April 15. The budget resolution guides government spending for the following fiscal year.

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budget reconciliation

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is

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Congressional Budget and Impoundment Control Act of 1974

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Congressional Budget and Impoundment Control Act of 1974 : A 1974 congressional act designed to reform the congressional budgetary process. Its supporters hoped that it would also make Congress less dependent on the president's budget and better able to set and meet its own budgetary goals.

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Wagner Act

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Also called the National Labor Relations Act of 1935, it gave workers involved in interstate commerce the right to organize labor unions and engage in collective bargaining and prevented employers from discriminating against labor leaders and taking action against union leaders.

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Congressional Budget Office

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A counterweight to the president's Office of Management and Budget (OMB). The CBO advises Congress on the probable consequences of budget decisions and forecasts revenues..

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Ways and Means Committee

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The House of Representatives committee that, along with the Senate Finance Committee, writes the tax codes, subject to the approval of Congress as a whole. A very powerful committee.

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Senate Finance Committee

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The Senate committee that, along with the House ways and means committee, writes the tax codes, subject to the approval of Congress as a whole.

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appropriations

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he last phase of the Congressional budget process for a fiscal year. The amounts authorized for spending on given programs, agencies, and government functions are approved for disbursement, or appropriation, from the U.S. Treasury.

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consumer price index

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The key measure of inflation that monitors the general rise in prices over time.

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cost benefit analysis

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A method of evaluating a public policy by determining if the benefits of the policy outweigh its costs.

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debt

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Amount of money owed by the central or federal government. Also known as the federal debt.

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deregulation

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Reducing or completely eliminating federal government oversight of an industry so as to allow it to operate more freely; deregulation is supposed to encourage competition and reduce costs to consumers.

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deficit

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Condition that arises when federal expenditures exceed revenues; in other words, when the government spends more money than it takes in.

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deficit spending

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Where the total of revenues raised by government (e.g. through taxation) is exceeded by the budgetary spending. As a result the government would have to borrow money - for example by issueing government bonds.

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demographics

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Characteristics of a population, including age, sex, and race. demographics are often used to determine changes in the make-up up of a population.

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capitalism

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An economic system in which individuals and corporations, not the government, own the principal means of production and seek profits. Pure capitalism means the strict noninterference of the government in business affairs. Compare mixed economy.

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mixed economy

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An economic system in which the government is deeply involved in economic decisions through its role as regulator, consumer, subsidizer, taxer, employer, and borrower. The United States can be considered a mixed economy.

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command economy/communism

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government control of economy and business, central planning

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entitlement programs

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Programs such as unemployment insurance, disability relief, or disability payments that provide benefits to all eligible citizens.

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means tested entitlement

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Programs such as Medicaid and welfare under which applicants must meet eligibility requirements based on need.

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Federal Reserve Board

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Executive agency that is largely responsible for the formulation and implementation of monetary policy. By controlling the monetary supply, the Fed helps maintain a stable economy.
Ben Bernanke

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Federal Mandates

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A requirement imposed by the federal government as a condition for the receipt of federal funds.

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fiscal policy

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Government policy that attempts to manage the economy by controlling taxing and spending.

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protectionism

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Policy of erecting trade barriers to protect domestic industry.

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quotas

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limits on amount of imports, a form of trade barrier

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Four types of trade barriers

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protectionism, quotas, subsidies and taxes

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globalization

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The degree of linkage among the community of nations.

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gramm-rudman-hollings act

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Legislation (two Congressional acts) that set budget reduction targets to balance the overall budget.

The legislation mandated maximum allowable deficit levels each year until 1991, when the budget was to be balanced. In 1987, the balanced budget year was shifted to 1993, but the act was abandoned in 1991.

The two acts are also known as the Balanced Budget and Emergency Deficit act or just "gramm-rudman".

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new deal

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The New Deal was a series of economic programs passed by the U.S. Congress during the first term of Franklin Delano Roosevelt, President of the United States, from 1933 to 1938.

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great society

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he Great Society was a set of domestic programs proposed or enacted in the United States on the initiative of President Lyndon B. Johnson.

Two main goals of the Great Society social reforms were the elimination of poverty and racial injustice. New major spending programs that addressed education, medical care, urban problems, and transportation were launched during this period.

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gross domestic product

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he monetary value of all of the goods and services produced by a nation in a given year - one of the most important tools for measuring the health of a nation's economy.

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incremental budgeting

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The belief that the best predictor of this year's budget is last year's budget, plus a little bit more (an increment).

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inflation

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A rise in the general price level (and decrease in value of the dollar) due to an increase in the volume of money and credit in relation to available goods.

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deflation

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decrease in price

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International Monetary Fund

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The IMF is an intergovermental organization that oversees the global financial system. It is based in Washington, D.C.. It focuses on exchange rate and balance of payment policies. It also makes emergency loans to nations under economic or financial crises.

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world bank

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Also referred to as the International Bank for Reconstruction and Development (IBRD), it provides monetary assistance to nations for the development of industries and aims to stimulate economic growth of third-world nations

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Keynesian economics

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Economic theory based on the principles of British economist, John Maynard Keynes stating that government spending should increase during business slumps and be curbed during booms.

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Laissez faire economics

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Theory that opposes governmental interference in economic affairs beyond what is necessary to protect life and property.

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mandatory spending

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Required government spending by permanent laws.

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discretionary spending

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Those appropriation items in the budget that are not mandatory. In the federal budget, discretionary spending consists of measures in the 13 appropriation bills that must be passed by Congress by October 1 in such categories as transportation, agriculture, and education.

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Medicaid

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Federal program that provides medical benefits for low-income persons.

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Medicare

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National health insurance program for the elderly and disabled.

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Military industrial complex

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close link between military and businessees

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monetary policy

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Government policy that attempts to manage the economy by controlling the money supply and thus interest rates.

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NAFTA

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North American Free Trade Agreement (NAFTA): Agreement signed by the United States, Canada, and Mexico in 1992 to form the largest free trade zone in the world.

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Office of Management and Budget

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Presidential staff agency that serves as a clearinghouse for budgetary requests and management improvements for government agencies.

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supply side economics

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Presidential staff agency that serves as a clearinghouse for budgetary requests and management improvements for government agencies.

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poverty line

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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.

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recession

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A downturn in the economy; two consecutive quarters of a negative gross domestic product.

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depression

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period of sustained economic downturn and high unemployment.

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regulations

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Efforts by government to alter the free operation of the market to achieve social goals such as protecting workers and the environment.

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open shop (union)

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A company with a labor agreement under which union membership cannot be required as a condition of employment.

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closed shop (Union)

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A company with a labor agreement under which union membership is a condition of employment.

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safety net

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A minimum government guarantee that ensures that individuals living in poverty will receive support in the form of social welfare programs.

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sixteenth amendment

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Authorized Congress to impose and collect federal income taxes.

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social security

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A combination of entitlement programs, paid for by employer and employee taxes, that includes retirement benefits, health. insurance, and support for disabled workers and the children of deceased or disabled workers.

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stagflation

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a combination of economic slowdown (stagnation) and rise in prices (inflation).

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taxes

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Money paid directly to the government in the form of income taxes.

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excise tax

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Consumer tax on a specific kind of merchandise, such as tobacco.

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flat tax

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A single low tax rate on all taxpayers coupled with the elimination of all or most exemptions.

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regressive tax

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A tax that is imposed on individuals regardless of how much they earn, such as a sales tax.

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payroll tax

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Programs in which eligibility is based on prior contributions to government, usually in the form of payroll taxes.

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trade deficit

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An imbalance in international trade in which the value of imports exceeds the value of exports.

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world trade organization

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International organization derived from the General Agreement on Tariffs and Trade (GATT) that promotes free trade around the world.

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GATT

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General Agreement on Tariffs and Trade (GATT): An international trade organization with more than 130 members, including the United States and the People’s Republic of China, that seeks to encourage free trade by lowering tariffs and other trade restrictions.