Study Guide: Policy Making

 

Date Due

Assignments

Thurs., Fri. 19 Fri., Mar. 20

Reminder: Extra Credit countdown for turning your Supreme Court paper begins today – 10 pts. for turning it in today even if you don’t have me until Friday. J

Mon., Mar. 23

1. Read p. 459 – 467 to “The Fed” (skip the green box) AND 468 – 471 to “Levying Taxes”

2. Answer questions 1 – 9

3. Fill out budget worksheet with your predictions

Tues., Mar. 24

1. Read p. 471 to 477

2. Read the handout on Economic Policy

3. Answer questions 10 - 13

Weds., Mar. 25

Work on your paper.

Thurs., Mar. 26

Supreme Court Case paper due today

Fri., Mar. 27

1. Read the green box on p. 467 and “The Fed” p. 467-468

2. Read the handout on passing a budget and make sure you understand all the steps

3. Answer question 14

Mon., Mar. 30

1. Read Chapter 17; p. 479 – 493

2. Answer questions 1 – 6 for Chapter 17

Tues., Mar. 31

1. Read p. 585 – 599 in the textbook from Chapter 21

2. Answer questions 1 – 3 for Chapter 21 on Environmental Policy        

Weds., Apr. 1

1. Read Chapter 20, p. 553 – 583

2. Answer questions 1 – 13 for Chapter 20

Thurs., Apr. 2

Review for your test

Fri., Apr. 3

Test on Public Policy

 

Chapter 16 – Economic Policy

Terms to Know

 

1.

Fiscal policy

9.

Milton Friedman

17.

Arthur Laffer

2.

Budget deficit

10.

Inflation

18.

Reaganomics

3.

budget surplus

11.

Recession

19.

Adam Smith

4.

Monetary policy

12.

Keynesianism

20.

Federal Reserve

5.

Fiscal Year (FY)

13.

John Maynard Keynes

21.

Scarcity

6.

Council of Economic Advisers (CEA)

14.

Economic planning

22.

Substitutability

7.

North American Free Trade Agreement (NAFTA)

15.

Price and wage controls

23.

Opportunity costs

8.

Monetarism

16.

Supply-side theory

24.

Budget Resolution

 

Questions on Chapter 16 – Economic Policy

Page 459-471

1.

Summarize how economics affects politics and how politicians respond.

2.

How do two kinds of majoritarian politics complicate the politics of taxing and spending?

3.

Summarize the following economic theories: Monetarism, Keynesianism, economic planning, industrial policy, supply-side, Reaganomics.

4.

Define fiscal policy, budget deficit, budget surplus, monetary policy, and fiscal year.

5.

Summarize the role of the CEA, OMB and secretary of the treasury.

6.

What are the two sides of the debate on free trade?

7.

How did the Congressional Budget Act of 1974 change the budget process? In your answer indicate how the budget process is supposed to work.

8.

What are entitlements?  What impact do they have on the federal budget?

9.

What was in the Gramm-Rudman Act or Balanced Budget Act of 1985?  Define sequester. What strategy was adopted when sequestration didn’t work?

Page 471 - 477

10.

Using the handout, define gross domestic product, recession, fiscal policy, discretionary spending, mandatory spending

11.

How did the Budget Enforcement Act of 1990 reform the process?

12.

Define tax loopholes, progressive tax, marginal rate, regressive tax, sin taxes, flat tax, capital-gains tax (from handout)

13.

What was in the Tax Reform Act of 1986? (from handout)

14.

What is the main function of the Federal Reserve and what are the three main tools they at their disposal to implement their policies?  Make sure you know this. (Of course, that’s true for everything….)

 

Chapter 17: Social Welfare

 

1.

What does it mean to have a “means test” for a program?

2.

What is the political difference between programs like Social Security or Medicare and Aid to Families with Dependent Children that make the latter easier to reform?

3.

How do the distinctive factors of social welfare programs in the U.S. affect the programs that we have developed?

4.

Study the yellow chart on p. 483 and be sure that you are familiar with Medicare, Unemployment Insurance, TANF, Food Stamps, Medicaid, and the Earned Income Tax Credit.

5.

What are the three possible solutions for reforming Social Security?

6.

What were the problems with Medicare and what are the possible solutions?

7.

How was welfare (AFDC) reformed in 1996?  Why was it possible to pass this reform?

 

Chapter 21: Environmental Policy

 

1.

Why is environmental policy so controversial?

2.

How does environmental policy in the United States differ from other countries?

3.

The book gives examples of how environmental issues illustrate al four styles of policy-making.  From p. 587 -596, skim the book and note down how environmental politics represents entrepreneurial, majoritarian, interest group, and client politics.  I’m interested in your understanding the interplay of different forces on policy-making rather than on your knowing the specifics of environmental policy over the decades. I also want you to understand how the perceived costs of a policy impact public acceptance of that policy.

 

Chapter 20 : Foreign and Military Policy

 

1.

Be sure that you understand how the roles of the President and Congress change according to what type of foreign policy issue is involved.

2.

On pp 555 – 560, the book talks about the extent and limits of presidential power.  This should be a review to you from the unit on the Presidency.  Make sure you remember all this.  Outline briefly the powers that the president has in foreign policy plus the checks on presidential power.  Be sure to understand the limits of those checks.

3.

What are the limits on the ability of the Secretary of State to direct foreign policy?

4.

What is the role of the NSC?

5.

Summarize the information about the interplay of public opinion and foreign policy.  What is the “rally around the flag” effect?

6.

Skim through the material on the four world views discussed in the book and be sure you understand what each was.. 

7.

What does the phrase “the military-industrial complex” refer to?

8.

What factors influence the growth or decline of the defense budget?

9.

What are the five explanations the book gives for cost overruns on big-ticket items in the defense budget?

10.

What is the explanation for expensive small-ticket items?

11.

Why was readiness given the lowest priority in budgeting?

12.

What solution did Congress adopt for base closings?

13.

What is the structure of the command in the Department of Defense?  The book talks about the 1986 reorganization, the Goldwaters-Nichols Act and how it reorganized the Joint Chiefs of Staff.  Summarize that information.

 

The Politics of Taxing and Spending - Terms to Know

 

1.

Budget

14.

Tax Reform Act of 1986

27.

Appropriations Committee

2.

Deficit

15.

Clinton tax plan (1993)

28.

General Accounting Office (GAO)

3.

Expenditures

16.

Gross domestic Product (GDP)

29.

Budget and Accounting Act (1921)

4.

Revenues

17.

“Military industrial complex”

30.

Congressional Budget and Impoundment Control Act (1974)

5.

Interest on debt

18.

Social Security Act (1935)

31.

Budget resolution

6.

Income tax

19.

Medicare (1965)

32.

Reconciliation

7.

Pollock v. Farmer’s Loan and Trust Co. (1895)

20.

“Great Society”

33.

Authorization bill

8.

Internal Revenue Service (IRS)

21.

Incrementalism

34.

Appropriations bill

9.

Progressive tax

22.

Mandatory or uncontrollable expenditures

35.

Continuing Resolutions

10.

Flat tax

23.

Office of Management and Budget (OMB)

36.

Omnibus spending bills

11.

Federal debt

24.

House Ways and Means Committee

37.

Gramm-Rudman-Hollings (1985)

12.

Tax loopholes

25.

Senate Finance Committee

38.

Sequestrations

13.

Indexing

26.

Congressional Budget Office (CBO)

39.

PAYGO

 

Chapter 17: Social Welfare

 

1.

Means test

5.

Medicaid

9.

Welfare Reform law (1996)

2.

Means tested

6.

Food Stamps

10.

insurance program

3.

Social Security Act (1935)

7.

Aid to Families with Dependent Children (AFDC)

11.

assistance program

4.

Medicare

8.

Earned Income Tax Credit

12.

service strategy

 

 

 

 

13.

income strategy

Chapter 21: Environmental Policy

 

1.

Clean Air Act (1963)

6.

Kyoto Protocol

2.

Auto emission standards

7.

Smog

3.

Environmental Protection Agency (EPA) (1970)

8.

toxic Waste

4.

Water Quality Improvement Act (1970)

9.

Acid Rain

5.

Endangered Species Act (1973)

10.

Environmental impact statement (EIS)

 

Chapter 20: Foreign Policy

 

1.

Legislative veto

7.

Iran-contra

13.

Containment

2.

War Powers Act (1973)

8.

Central Intelligence Agency

14.

Domino theory

3.

Senate Foreign relations Committee

9.

Isolationist

15.

Munich

4.

Boland Amendment

10.

Internationalist

16.

Appeasement

5.

National Security Council

11.

“rally around the flag” effect

17.

Disengagement

6.

National Security Adviser

12.

Iron Curtain and the Cold War

18.

Human rights

 

Chapter 20: Military Policy

 

1.

Military-industrial complex

7.

Intercontinental ballistic missiles (ICBMS)

12.

Readiness

2.

“Peace dividend”

8.

Mutual assured destruction (MAD)

13.

Commission on Base Realignment and closure (BRAC)

3.

“World’s policeman”

9.

“Don ask, don’t tell”

14.

National Security Act (1947)

4.

Joint Chiefs of Staff (JCS)

10.

Cost overruns

15.

Chain of Command

5.

Armed Services Committees

11.

Gold plating

16.

Goldwater-Nichols Act (1986)

6.

Strategic defense Initiative (SDI) or “Star Wars”