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OMB- Office of Management and Budget |
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| part of congress, employ skilled economists who try to estimate what the money world will look like in the future,prepare estimates of the amount that will be spent by federal agencies to negotiate with other depts.. over the sixe of budgets amd make sure the legislative proposals of these depts. Are in accord with pres program |
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| CBO-Congressional Budget Office |
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| part of congress, employ skilled economists who try to estimate what the money world will look like in the future, analyzes pres budget |
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| An attempt to use taxes and expenditure to affect the economy |
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| An attempt to use the amount of money and bank deposits and the price of money to affect the economy |
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| regulate insofar as it can the supply of money both in circulation and in bank deposits and the price of money in the form of interest rates |
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| A claim for gov funds that can’t be abridged without violating the rights of the claimant for example soc sec benefits, or payments on a contrant |
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| refers to spending set by annual appropriation levels made by decision of Congress.optional, opposite of entitlement spending |
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| the gov spends more than it takes in thus pumping more money |
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| amount gov has spent- the money it takes in |
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| gov takes in more than it spends thus draining money out of the economy |
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| assumed increase in spending because of COLA |
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| Cost of living Adjustment COLA |
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| annual adjustment in wages to offset a change in purchasing power as measured by the consumer price index |
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| financial record of employees salaries wages bonuses net pay and deductions |
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| a tax assessed on profits realized from the sale of a capital asset such as stock. |
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Monetarism What is it? What political party favors it and why? |
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| conservative(imply gov smaller and less intrusive),Inflation occurs where there is too much printed for few goods, when inflation is rampant gov. cuts back sharply on the amount of money circulating. Then a recession happens with slowed economic growth and increase in unemp. à gov doesn’t get that eco problems from start stop habit of issuing new moneyand make policies to help but make it worse like unbalanced budget or new welfare programs. Wants gov to have steady predictable increase in money supply at rate equal to groth in economys productivity and leave rest alone |
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Keynesianism What is it? What political party favors it and why? |
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| liberal(permits fed gov to carry on range of soc. Welf. Programs),market no operate at full employement low inflation level, health depens on what fraction peoples incomes they save or spend. Save to much too little demand production down unem. Up , spend to much demand up fast prices up shortages develop. Wants to create the right level of demand, when demand is little gov soup pump more money into eco. Demand to great gov take money out of economy by increasing taxes or cut fed expenditures |
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Planning eco planning What is it? What party favors it? |
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| socialist(alt to free maket and private management of eco resources) price and wage controlsà big corps can raise prices cuz competition is to weak to restrain themand labor unions can force up wages because management finds it ease to pass the increase along to consumers in form of higher prices, during inflationary times gov should regulate max prices that can be charged and wages paid. Industrial policyàconcern for health of basic industries like steel and auto manuf. Thought they wouldn’t recover through market forces. Wanted gov to direct or plan investments so either they would recover or new ones would come |
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Supply-Side Tax Cuts what is it what party favors it |
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| conservative(imply gov smaller and less intrusive), supply-siders, market has not been given the chance to succeed, says less gov interference, in particular: sharp cutting taxes will increase incetive to work save and invest, greater investments make more jobs, earnings from investments and jobs taxed less lessen tendency to shelter earnings from tax collector, greater productivity of economy prodeu more tax revenue for gov even though tax rates lower the tot. nat. inc. will be higer |
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Reaganomics How does it tie together the other polices? |
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| combo monet. Supply side tax cuts and domestic budget cutting. Pres wanted to reduce size of fed gov, stimulate eco growth, and increase military strength. Spending on some dom. Programs reduced which slowed rate of growthof fed spending on these programs but didn’t actually decrease the spending. Military spending sharp increase. Money supply held under control to combat inflation. Sharp cuts in personal income taxes but for many these cuts were offset by inc. in soc. Sec. Taxes. Effect of lowering taxes while increasing spending was to stim eco by pomping money into it and to create large deficits, the stim eco caused drop in unemployment rate and rise in busi. Activity. Large deficits increased dramatically to size of nat. debt. |
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| The cornerstone of _____ philosophy is the belief that each person is an individual who is responsible for his/her own place in society |
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| ___ are more willing to subordinate the individual to the group. Society is collectively responsible for each of its members. |
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| believe that government should be limited to doing only those things that people cannot do for themselves. |
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| rely more on an active role by the state and local governments |
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| place less emphasis on individual enterprise and initiative |
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| contend that growing urban and national problems at times makes state and local government obsolete. |
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| rely more on an active role by the Federal government |
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| tend to look for ways to cut back or eliminate unnecessary and overlapping Federal programs. |
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| believe that the free enterprise system is the key to individual and national prosperity. |
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| contend that the economy is too complicated to be left alone and must be managed at the Federal level. |
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| à a person who favors a more active federals voernment for regulating business, supporting social welfare, and protecting minority rights but who prefers less regulation of private social conduct |
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| favors a more limited and local government, less gov regulation of markets more social conformity to traditional norms and values and tougher policies toward criminals |
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Pure Liberals eco and personal conduct usual people |
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| liberal on both economic policy and personal conduct. They want the government to reduce economic inequality, regulate business, tax the rich heavily, cure the economic causes of crime, allow abortions, protect rights of accused and guarantee broadest possible freedom of speech and press. 17%-94, average citizen, young , college educated and either jewish or non religious |
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| conservative on economic and conduct, want gv to cut back on welfare state, allow market to allocate goods and services, keep taxes low, lock up criminals and curb forms of conduct they regard as antisocial. 28%’94, average citizen to be older, higher incomes , white live in Midwest |
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| conservative on economic matters and liberal on social ones. Want a small weak government with little control over economy or personal lives of citizens, 21% 94, average citizen to be young college educated and white, high incomes and no religion live in the west |
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| liberal on economic matters and conservative on social ones They want a government that will reduce economic inequality and control buisiness but they also want to regulate personal conduct lock up criminals and school prayer, 24%-94, average citizen to be older poorly educated low income religious female |
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