1. Policy Types, Government Budgets, and Spending Dr. East 2/22/2015

2. Domestic Policy Def. A broad set of policies designed to improve the health, safety and general welfare of the people in American Society. – Reduce poverty and hunger – Increase economic opportunities – Improve people’s health and well-being Examples?

3. More Examples Social Security Act of 1935 – set up a national retirement pay system we call Social Security, public assistance for poorest and disabled, and created an unemployment compensation fund … established an official “welfare state” in America Creation of FEMA (Federal Emergency Management Agency) and it’s over-hall after its inability to really help the people of New Orleans after Katrina Child Protection Agencies (CPA) established in states as a result of 1974 Congressional Act; later in 1993 Clinton signed a National Child Abuse Prevention Act to track child abusers 1990 Americans with Disabilities Act (ADA) – designed to make public transportation and public buildings accessible by disabled and elderly Clean Air Act of 1970 and amendments to it in 1977 and 1990 – established national air quality standards and eventually set vehicle emissions standards Fair Housing Act (Section 9 of 1968 Civil Rights Act) and revised in 1988 – made it illegal to discriminate in sale, rental, and financing of housing Affordable Care Act of 2010 – “Obama Care” made health care more affordable, helped those without ins. become insured

4. Entitlement Spending is a Huge Concern = Monies, services, and other benefits provided to eligible people; these must be provided year after year unless laws change.

6. In-Class Assignment Use text and notes to complete worksheet on different types of domestic policy examples. See me for copy of this worksheet or go online to my teacher page.

7. Economic and Budgeting Policies The US economy is a mixed free-enterprise system characterized by private ownership of property, private businesses, investor/stock owned businesses, and marketplace competition that is regulated by the US government. – A policy that completely left people alone with a completely unregulated free market is called “laissez- faire” economic policy. – Regulations can be Economic - with the goal to control entry into businesses, control prices at the market, subsidize or enhance profits for certain publically needed industries and goods/services, manage monopolies, protect against foreign competition in market, tariff imports, etc.) or Social – set standards for the quality and safety of products or the the conditions under which employees work or that services are provided

8. Most begin in late 1800’s and extended in to the Progressive Era of America Politics 1887 – Interstate Commerce Act regulates railroad industry – designed to prevent collusion in rate pricing, creates an Interstate Commerce Commission (ICC) 1890 – Sherman Anti-Trust Act designed to break up monopolistic control of industries by one company, initially focused on oil and rail road industries but recently used on cable providers and Microsoft 1913 – Federal Reserve Act to better control America’s banking industry 16 th Amendment – 1913 makes it legal for federal government to collect an income tax to pay for gov. needs Interventionist State emerges after Stock Market Crash and recession and federal gov. begain regulating private markets more frequently Glass-Stegall Act of 1933 creates the FDIC, Federal Depository Insurance Corporation protects bank accounts 1934 – Securities and Exchange Commission begins with designed to regulate the activities of the Stock Market and reduced purchases made with borrowed credit. 1938 – Agricultural Adjustment Acts – legally provides farm subsides and sets growing limits

9. Involvement in the economy is designed to protect against inflation (where prices for goods and services rise relative to incomes/wages) and recession (where consumers cannot afford supplied goods/services and become under or unemployed as consumption of goods declines… those evetually causing a reduction in the Gross Domestic Product) as a result of fluctuations in global capital markets Economies are no longer isolated thanks to globalization Occasionally economists and politicians attempt to deregulate the economy – saying that too much gov. regulation leads to lack of consumer choice and inefficiencies that lead to higher prices for consumers Very rarely do they attempt to deregulate social policies. Could you imagine the gov. getting rid of OSHA – the Occupational Safety and Health Administration or MSHA (mining adminstration) or rescinding the Fair Labor Standards Act of 1938 that made child labor illegal or ensures that wages are more fair?

10. Monetary Policy Economic policies work hand in hand with managing the nations monetary supply (monetary policy) and influencing the amount of money in circulation and setting interest rates for credit markets The Federal Reserve System manages our money supply (the amount available in circulation), sets limits on the amounts banks need to keep in reserve to back loans, and it sets discount rates that affect how much loans eventually cost consumers

11. 4 th Block Homework on Fiscal & Budgeting Policies Fiscal Polices – the use of gov. taxing and spending to influence the economy, maintain economic stability, and provide for the social welfare Read pgs. 652 – 668 and be ready for a quiz next class

12. In-Class Watch: PBS Frontline Video, “Ten Trillion” http://www.pbs.org/video/1099844054/ Understand the vocabulary and answer the study questions that accompany the film. Put answers to study questions on separate sheet See my for study questions or go online to teacher pg.

13. How Gov. Collects Revenues: Income Taxes, Example W2

15. Historical Taxing Categories

17. Fiscal Policy of Gov. Budgets Must Balance Discretionary and Mandatory Spending What is the difference between these two types of spending?

18. Historical Spending Categories

19. Mandatory Spending

20. Discretionary Spending What part of governm ent controls what we spend discretio nary money on?

22. Public Debt is now over $18 Trillion

24. Homework: Try the budget Challenge http://www.fede ralbudgetchallen ge.org/pages/ov erview http://www.fede ralbudgetchallen ge.org/pages/ov erview Turn in a print out of your final screen

25. Foreign Policy More to come… will update powepoint towards end of week.