American Government Unit 7

is low inflation and people can find jobs

Supply and Demand

Industries or service (like a business, like Ford)

Consumer (people)

a healthy economy, when supply and demand are in sync

Inflation and Recession

when prices go up and salaries stay the same it affects your standard of living

when Inflation has gone from bad to worse

when the economy slows down, when demand goes down, unemployment goes up

when recession has gone from bad to worse

Hamilton- Government needs to do more Jefferson- Government needs to do less

Activist governmental intervention (the government needs to do more)

The New Deal

Put Keynesians idea into reality, Policy of FDR, The government was going to do more

1. Fiscal Policy

2. Monetary Policy

Government Spending, Taxes, and deficit/borrowing

• To raise taxes (less money for the people to spend)

• Government should cut its spending (less money in the system)

• Cut taxes (more money for the people to spend)

• Government should increase spending (more money in the system)

Limited government intervention

government less involved only sends signals), controlling the money supply and circulation, want less money in the system

like the central bank, decide how much money to print, banks borrow money from them, can raise interest rates - to tame inflation.

Interest rates go down

Interest rates go up (the U.S. right now)

The first of six stages in policy making, in which, some event, person, or group calls attention to a problem that needs government cation

the third stage of policymaking, in which policymakers and their staff deliberate the pros and cons of different courses of action, a process that may take years to complete

The fourth stage of policymaking, which is usually fight to gain government support for a policy and demands much bargaining and compromise

a model that assumes that the policymakers have a clear objective and all the information needed for sound and reasoned decision, with the result being the selection of the policy alternative that offers the most efficient and effective way to achieve the desired goal

A more realistic model of decision making that sees public policy as a process of making decisions at the margins of current policies by adding to or subtracting from those policies

The theory that public policies are made by a relatively small group of influential leaders who share common goals and points of view

a theory that attributes policy outcomes to pressures exerted by different interest groups

Protect consumers, meaning that the sellers have to be honest.

Sellers have to be honest, also the enforcement of Antitrust laws

1. Antitrust laws

2. Deregulation and reregulation

There has to be competition in the market. No monopolies or monopolizing a sector of the economy

less regulation, less government involvement, Republican

More regulation, more government involvement, Democratic

sending something out

getting what you don't have

a tax on imported goods (Goal is to save American jobs and to import less)

This was to protect American factories, other countires also did the same thing (this also led to or was a cause of the Great Depression)

reduced trade walls and tariffs

Importing more than you are exporting (Some people thought that tariffs would be a solution for this)

1. National Emergencies

2. Infrastructure improvements

3. Entitlement Programs

4. Greater public demands

Ex. Covid, stimulus checks- borrowing money to sustain the economy

• Building road, highways, and airports

• Not enough money coming in, can raise taxes or poll stops, but the government ends up borrowing money

• Ex. Welfare, Social Security

• Government is obligated by law to give you assistance

Have expectations but no one to pay for them so the government has to provide them

New Welfare and Social Insurance

• Empowered states

• End dependence

• Capping welfare costs

• Social Security

• Medicare

• Medicaid

• Right now more is going out than coming in

• Lower birth rate, so there are not enough workers contributing from the fund

• People are living longer and are taking more money out

1. Keep raising the age requirement

2. Reduce the amount to take out

• Health insurance for the elderly (senior citizens) 65+

• Once you hit 65 you qualify for it, no matter what (this is why it is entitlement)

Health insurance for the poor and needy

1. George Washingtons Farewell Address

2. Monroe Doctrine

(need to avoid) Alliances and Entanglement

Clear interest in Latin America (first sign of America becoming a great power)

Neutrality (America needed to maintain neutrality)

Acted by itself in international affairs

George Washington

Expand American boundaries - Spanish-American war of 1898 - colonial expansion (Founded under the Monroe Doctrine)

1890s and early 1900s, Nicaragua, Panama, the Dominican Republic in Haiti (America intervening)

World leader (1914-1960)

Change in U.S foreign policy - no return to isolationism

Bipolar view of international alliances

a division of the world into 2 camps (Capitalism and Communism)

(End of) Unilateralism (it is a miliary and political alliance, an attack on one is an attack on all)

• America has a military presence in South Korea to help protect from North Korea (The war in the Korean peninsula)

• America helps South Korea because they are Capitalist

Fighting indirectly

Hottest cold war (the closest that Russia and America actually came to fighting each other)

To block soviet expansion (to prevent the spread of communism)

25 years (America was there) - containment

America eventually pulled out

(Aimed at) reducing tensions (with the Soviet Union to prevent another Vietnam

Oil embargo (Not sending oil to the U.S because of supporting Israel and because Israel won. Example of an Economic impact)

• Russia in 1980 hosted the Summer Olympics

• The reason why America and its allies boycotted the Olympics in the 1980s is because Russia invaded Afghanistan

• In 1984 Russian and its allies didn’t come to the Olympics in L.A.

• This is an example of the Civil war impacting Sports

New challenges (terrorism)

Every way of life

President can make treaties that are approved by the senate Executive agreement is when the President can bypass the Congress, but the agreement expires when they leave office (Formal Recognition and National Security Council are also an important part)

Recognizing and befriending other governments

• Made up of foreign diplomacy experts

• Advise the President of the 2 issues - Foreign and Defense policy

American interest abroad (To conduct diplomacy presence in America in every country there is an Embassy)

To protect American Security

help the Department of Defense

1. CIA

2. NSA

Central Intelligence Agencies They send people or foot solders into other countries to get reliable information

They use technology to spy and gather information (like cells phones and the internet)

Not one branch has all of the power, Congress controls the budget

President makes a treaty but doesn’t go into effect until it is ratified

War Power Resolution

President Nixon vetoed it Limits the President to 60 days to send troops abroad

Media covers international stories People who pay attention to the news and most Americans do not do this

Little knowledge or interest

Most Americans have little knowledge or interest Americans do not drive policies Does not impact American Foreign policy

Controlled by the President (Which countries can befriend America President can control other countries actions by threatening to no long be friends)

Marshall Plan (given to western European after WW2 for their economy to recover and to stay allies)

1. Israel

2. Egypt

3. Colombia

• A written commitment

• To reward a country

• To become a Best Friend of America

Secret assistance (This is where the CIA comes in. Behind the scenes because not everything is done out in the open. At a certain time, people have to declassify information)

Nuclear