Chapter 13 - Domestic and Economic Policy

Domestic and Economic Policy

Chapter 13

Domestic Policy

Domestic policies are all government laws, planning and actions that concern internal issues of national importance such as health care, the environment and the economy.

Domestic Policy Issue: Health Care

Affordable Care Act (2010): “Obamacare”- healthcare insurance to all Americans

Entitlement program- a government program that entitles a defined class of people to obtain benefits, operate under open-ended budget authorizations that do not limit how much can be spent.

Medicare: a federal health-insurance program that covers U.S. residents over the age of 65. The costs are met, in part, by a tax on wages and salaries

Medicaid: A joint federal-state program that provides medical care to the poor. The program is funded out of general government revenues

Domestic Policy Issue: Immigration

The issue of unauthorized immigration

Debate between what should be done regarding illegal immigrants

Obama vs. Trump policy

“Dreamers”

Biden: No deportations for the first 100 days

Domestic Policy Issue: Energy and the Environment

Energy policy addresses two major problems:

1) America’s reliance on foreign oil

The U.S. has taken steps towards energy independence- fracking- the injection of a high-pressure solution of water, sand and chemicals into hydrocarbon-bearing rocks, releasing oil or natural gas. There are concerns that fracking may harm drinking water and damage the environment.

2) Climate change- caused by the emission of carbon dioxide and other greenhouse gases, some dispute how serious it is

The Politics of Economic Decision Making

U.S. economy experiences ups and down

Recession- an economic turndown, usually characterized by a fall in the GDP and rising unemployment

Economic booms can lead way to inflation- a sustained rise in the general price level of goods and services.

Fiscal policy- the federal government’s use of taxation and spending policies to affect overall business activity

Lower taxes or higher spending can increase the budget deficit

Keynesian economics- the economic school of thought which supports the use of government spending and taxing to help stabilize the economy (John Maynard Keynes)

The federal government has run a deficit in most years since 1960

The Politics of Economic Decision Making

Monetary Policy- the use of changes in the amount of money in circulation to alter credit markets, employment and the rate of inflation- this is the domain of the Fed (Federal Reserve System)- the most important regulatory agency in the U.S. monetary system

Federal Open Market Committee- the most important body within the Federal Reserve System- it decides how monetary policy should be carried out.

Loose monetary policy- the supply of credit increases, its costs fall (encourages economic growth)

Tight monetary policy- the supply of credit falls, its cost increases (used to control inflation)

The Policy of Taxation

U.S. taxes amount to about 28% of the GDP (gross domestic product)

The federal individual income tax is progressive- higher earners pay a larger share of their income

Individuals and corporations that pay taxes at the highest rates will try to pressure Congress to create exemptions and tax loopholes (allow high-income earners to reduce their taxable incomes).

Class Assignment # 17: Does entitlement spending corrupt us?

* Your assignments must be typed with name and number of the assignment (#17)

* 2 paragraph minimum, submit in dropbox under class assignments

* * State your point of view and discuss your reasoning for supporting

 

Class Assignment #18- Public Policy

* Your assignments must be typed with name and number of the assignment (#18)

* 2 paragraph minimum, submit in dropbox under class assignments

*Pick any three issues below and explain what you think the public policy should be? In other words, what should be the governmental regulations?

Affirmative action , Aging, AIDS and HIV, Air Pollution, Animal rights, Bullying , Capital punishment, Domestic Violence, Cyberbullying, Drug Policy, Prescription Meds, Drugs in sports, Drunk Driving, Federal Budget/spending, Flag desecration, Global Warming, Gun Control, Hate Crimes, Homelessness, Heath Care Reform, Immigrations, Prisons, Recycling, Smoking/Vaping, Tax Reform, Teen drinking, Teen Pregnancy, Terrorism