Lesson 12 example #73006

The United States has a mixed economy—partly capitalist, partly socialist.

To controll big fluctuations. The public has come to expect the government to prevent times from getting too bad.

Fiscal policy is government taxing and spending. When the government spends, it puts money into the economy. When the government taxes, it takes money out of the economy. Decreasing taxes can put more money into the economy. Increasing spending and cutting taxes are two things that can stimulate the economy.

Monetary policy involves the money supply. Increasing the amount of money available is believed to stimulate the economy. Reducing the amount of money available is believed to slow the economy down.

Budget. The budget is symbolically important because it sends a signal about what is important to our leaders. It is practically important because without it, the government shuts down.

Because what happens around the world can affect our economy and our physical security.

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U.S. foreign policy is made by the president and his advisers, Congress, interest groups, think tanks, and other elites.

The use/threat of force, go a long way in persuading other nations to do what we'd like them to do.

Treaties, free trade agreements, and economic sanctions. We hope that we can put economic pressure on countries to get them to do what we want, though if that fails, we may fall back on the military.

The US economy is considered a mixed economy - has features of capitalism, government ownership, and government regulation of the economy.

Due to the Great Depression and the creation of the New Deal programs to respond to it, the American people have come to expect the government to address economic problems.

Fiscal policy - refers to government taxing and spending. Fiscal policy is made by the president and Congress. When the government taxes us or spends money on programs, it is engaging in fiscal policy. Federal budget is fiscal policy Monetary policy - affects the supply of money available in the economy. It is controlled by a government agency, Federal Reserve Board, or the Fed.

Mandatory spending means that Congress and the president have don't increase/decrease it. Mandatory spending is for such things as interest on the national debt, Social Security, and Medicare. Discretionary spending is spending that Congress and the president may adjust from year to year.

1. Promotional 2. Regulatory 3. Redistributive

Contributory programs are social programs financed by taxation or other mandatory contributions by their present or future recipients. Two examples are: 1. Social Security 2. Medicare

Means testing

Noncontributory Programs

7.65 percent subdivided between social security and Medicare.

Minorities, women, and children are most likely to face poverty.

Police regulation

No Child Left Behind (NCLB)

It was articulated by President Monroe to warn foreign powers not to meddle in the Western Hemisphere.

The Cold War was the period of struggle between the United States and the former Soviet Union lasting from the late 1940s to about 1990.

Preventative War. The reason for the shift was to counter new security threats.

To provide short-term flow of money to facilitate monetary exchanges to needy countries.

North Atlantic Treaty Organization (NATO)

diplomacy

isolationism

1. Physical Protection - One hundred years ago, the United States was able to exist in virtual isolation. Isolationism allowed us to grow. Now, however, technology has made isolation from the rest of the world impossible. Airplanes, missiles capable of flying thousands of miles, computers, the Internet, terrorism, and weapons of mass destruction have made isolation a thing of the past. 2. Combatting Terrorism - We no longer have as much fear of attack from known nuclear powers, but that fear has been replaced by the possibility of nuclear, chemical, and biological attacks from terrorist organizations and so-called rogue nations, such as Iran and North Korea.

1. Diplomacy 2. Money 3. Force

Health and Humanitarian Assistance

General Agreement on Tariffs and Trade

Executive Agreement

1. Don't rush into wars, instead take the time to proves and understand the situation at hand 2. It is important for the government to have the public backing it before it goes into war

The Bush Doctrine is foreign policy based on the idea that the United States should take precautionary action against threats to its national security.

1. Capitalism is an economy with a free market in which people are able to buy and sell at will. Capitalism is the type of economy one expects to find in a classical liberal society. 2. Socialism is an economic system of collective ownership and control of the economy, where the government has the power to control prices, wages, and the supply and demand of goods.

1. Physical Protection 2. Combatting Terrorism 3. Protecting Economic Growth and Security 4. Promoting Democracy and Human Rights

Free trade

Protectionism