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26 Cards in this Set

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Domestic Policy
Public plans or courses of action that concern issues of national importance, such as poverty, crime, and the environment.
Poverty and Welfare
Low income
-transfer pmts as income
welfare reform
-Temporary Assist Needy Families (TANF)
Other forms
Supplemental Security Income (SSI)
Food Stamps
Earned-Income Tax Credit (EITC) Program
A government program that helps low-income workers by giving back part or all of their Social Security taxes
Income Transfer
A transfer of income from some individuals in the economy to other individuals. This is generally done by way of the government. It is a transfer in the sense that no current services are rendered by the recipients.
In-Kind Subsidy
A good or service—such as food stamps, housing, or medical care—provided by the government to lower-income groups.
Supplemental Security Income (SSI)
A federal program established to provide assistance to elderly persons and disabled persons.
Temporary Assistance to Needy Families (TANF)
A state-administered program in which grants from the national government are given to the states, which use the funds to provide assistance to those eligible to receive welfare benefits. The TANF program was created by the Welfare Reform Act of 1996 and replaced the former AFDC program.
Environmental Impact Statement (EIS)
Air Polution
Water Polution

As a requirement mandated by the National Environmental Policy Act, a report that must show the costs and benefits of major federal actions that could significantly affect the quality of the environment.
The Politics of Economic Decision Making - 7
Action-Reaction Syndrome
Federal Open Market Committee (FOMC)
Fiscal Policy
Keynesian Economics
Loophole
Monetary Policy
Policy Trade-Offs
Action-Reaction Syndrome
For every action on the part of government, there is a reaction on the part of the affected public. Then the government attempts to counter the reaction with another action, which starts the cycle all over again.
Federal Open Market Committee (FOMC)
The most important body within the Federal Reserve System. The FOMC decides how monetary policy should be carried out by the Federal Reserve System.
Fiscal Policy
The use of changes in government spending or taxation to alter national economic variables, such as the rate of unemployment.
Keynesian Economics
An economic theory, named after English economist John Maynard Keynes, that gained prominence during the Great Depression of the 1930s. It is typically associated with the use of fiscal policy to alter national economic variables—for example, increased government spending during times of economic downturns.
Loophole
A legal method by which individuals and businesses are allowed to reduce the tax liabilities owed to the government
Monetary Policy
The use of changes in the amount of money in circulation to alter credit markets, employment, and the rate of inflation.
Policy Trade-Offs
The cost to the nation of undertaking any one policy in terms of all of the other policies that could have been undertaken. For example, an increase in the expenditures on one federal program means either a reduction in expenditures on another program or an increase in federal taxes (or the deficit).
Budget Deficit and the Public Debt - 3
Public Debt Financing
Public Debt, or National Debt
U.S. Treasury Bond
Public Debt Financing
The government's spending more than it receives in taxes and paying for the difference by issuing U.S. Treasury bonds, thereby adding to the public debt
Public Debt, or National Debt
The total amount of debt carried by the federal government.
U.S. Treasury Bond
Evidence of debt issued by the federal government; similar to corporate bonds but issued by the U.S. Treasury.
Defining Poverty
absolute measure of income needed to maintain a specified standard of living

threshold income level-originally based on the cost of a nutritionally adequate food plan - dermined by multiplying the food-plan cost times three-food expenses constitute approximately one-third expenditures-
Transfer Payments as Income
official poverty level is based on pretax income including cash but not in-kind subsidies
Homelessness
difficult to estimate how many people are homeless because the number depends on how the homeless are defined
Crimes in the 21st century
juveniles
federal drug policy
terrorism
Why We Probably Will Never Have a Truly Simple Tax System
action reaction syndrome
loopholes
As tax rates went up, more affected spent more time and effort to get Congress to legislate special exceptions, exemptions, loopholes, and the like, so that the full impact of such tax-rate in-creases would not be felt by richer Americans
Social Security: How Long Will It Last?
result of Great Depression
need to start selling bonds that were bought to fund ssi for baby boomers
around 2030 all will be sold
to fun payroll tax will have to go up to 40%