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AP GOVERNMENT KEY TERMS
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Unit 5: PUBLIC POLICY
Appropriations Committee: Congressional committee that deals with federal spending
Agenda setting: Advocating a set of issues, problems, or subjects that gets the attention of, or is viewed as important by people
involved in policymaking
Bipartisanship: Support from both parties for policy, e.g., a bipartisan foreign policy
Defense Department: Chief executive department responsible for formulation and implementation of US military policy
Deficit spending: The federal government’s practice of spending more money than it takes in as revenues
Discretionary spending: The portion of the budget that the President requests and Congress appropriates every year. It
represents less than 1/3 of the federal budget, while mandatory spending accounts for around 2/3
Entitlements: Federal benefit payments to which recipients have a legal right, e.g., Social Security. Also known as
uncontrollable spending
Federal Reserve Board: A board that sets member banks’ reserve requirements, controls the discount rate, and makes other
economic decisions regarding monetary policy for the US government
Fiscal policy: Government policy that attempts to manage the economy by controlling taxing, spending, and the federal budget
Flat taxation: A tax that requires everyone to pay the same rate, no matter their income level
Mandatory spending: Spending not controlled by annual budget decisions (nondiscretionary spending)
Means tested spending: Government programs providing benefits only to individuals who qualify based on specific needs
Medicaid: Federally funded medical care for the poor
Medicare: Federally funded medical care for the elderly
Monetary policy: The Federal Reserve Board’s regulation of the supply of money in circulation
NAFTA: Also known as the North American Free Trade Agreement. Created to allow the free movement of goods
between Canada, Mexico, and the US by lessening and eliminating tariffs
National debt: Total debt owed by the federal government due to past borrowing
National Security Council (NSC): Created to coordinate the President's foreign and military policy and includes the President,
Vice President, Secretary of State, and Secretary of Defense, and is managed by the President's National Security Advisor
Progressive taxation: A tax graduated so that people with higher incomes pay a larger fraction of their incomes than people
with lower incomes
Regressive taxation: A tax whereby people with lower incomes pay a higher fraction of their incomes than people with higher
incomes
Social welfare policy: Policies that provide benefits to individuals based on their entitlement or means testing
State Department: The federal department in the United States that sets and maintains foreign policy
Tariff: Tax levied on imports to help protect a nation’s industries, labor, or farmers from foreign competition
Treasury Department: The treasury of the United States federal government. It mints all paper currency and coins in
circulation. The department also collects all federal taxes and manages the U.S. Government debt
Ways and Means Committee: House committee where taxation bills originate
UNIT 5:
PUBLIC POLICY
MAIN TOPICS
DOMESTIC POLICY
FOREIGN & MILITARY POLICY
132
DOMESTIC
POLICY
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AP AMERICAN GOVERNMENT STUDY GUIDE
PUBLIC POLICY
DOMESTIC POLICY
MAKING POLICY & INFLUENCING POLICY MAKERS
BROAD CATEGORY
LINKAGE
INSTITUTIONS
SPECIFIC
SEGMENT
DESCRIPTION
Political Parties
A group which attempts to win elections
so they can control the government.
Interest Groups
--Use propaganda to influence society.
--Use PACs to influence elections.
--Hire lobbyist to influence Congress.
(THEY INFLUENCE POLICY)
Media
Selects stories to cover thus that topic
gains our attention. (This could place issues at
a higher priority on our nation's agenda)
GOVERNMENT
INSTITUTIONS
(THEY MAKE POLICY)
Congress
Creates laws.
President
Issues executive orders.
Bureaucracy
Judicial
Agencies set regulations (rule- making)
Court sets a precedent.
--Policy is basically anything a government decides to do.
--Domestic Policy includes everything a government takes care of within U.S. borders. The United States has developed policy to take
care of its people, especially the less fortunate, to protect the environment, to finance government, and to enhance that state of the
economy.
--Remember linkage institutions connect people to the government.
THEORIES ON THE COST & BENEFITS OF POLICY
THEORY
THE COST
THE
BENEFIT
MAJORITARIAN
Distributed
(Everyone pays)
Distributed
(Everyone gets)
--Social Security
--Military Protection
ENTREPRENEURIAL
Concentrated
(Some pay)
Distributed
(Everyone gets)
-Congress passes a law
that factories can only
allow so much carbon
emissions per year.
CLIENT POLITICS
Distributed
(Everyone pays)
Concentrated
(Some get)
--Food stamps
--Medicaid
INTEREST GROUP
Concentrated
(Some pay)
Concentrated
(Some get)
Congress passes law that
when a factory closes they
must give the workers 60
days notice.
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EXAMPLE
AP AMERICAN GOVERNMENT STUDY GUIDE
PUBLIC POLICY
DOMESTIC POLICY
THEORIES ON INFLUENCING POLICY
THEORY
DESCRIPTION
MAJORITARIAN
POLITICS
They focus on carrying out the will of the majority.
ELITE THEORY
People with more money and influence dominate the
policy--making process.
INTEREST GROUP
POLITICS
Interest groups organize PACs to influence elections
and hire lobbyists to influence policy creation.
PLURALIST THEORY
Viewpoints are so scattered no group can control all
the levels of government.
(Framers wanted to stop the tyranny of the majority)
Other textbooks refer to other theories:
--Class View (theory) government is dominated by capitalists.
--Bureaucratic View (theory) in which appointed officials have too much control of the government.
--Power Elite View (theory) government is dominated by a few top leaders (many outside of government).
BASIC OF POLICY DEVELOPMENT
PHASE
DESCRIPTION
AGENDA SETTING
The agenda is a set of issues to be discussed or given
attention. Presidents recommend legislation.
Congress members propose bills in their house. Polls
and media show government officials how the people
feel about policy.
POLICY FORMATION
Political leaders look at the cost benefit analysis to
decide if policy is worthy.
POLICY ADOPTION
Congress creates policy (law) with presidential
approval.
POLICY
IMPLEMENTATION
An agency within the executive branch that deals with
that topic is selected.
POLICY EVALUATION
The public and government react to new policies to
decide if any changes are needed. Congress is the
tool used to change budgets or alter policy laws.
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AP AMERICAN GOVERNMENT STUDY GUIDE
PUBLIC POLICY
DOMESTIC POLICY
SOCIAL WELFARE POLICY
PROGRAM
SOCIAL
SECURITY
MEDICARE
MEDICAID
HEALTH
CARE
DESCRIPTION
●
The Social Security Act of 1935 created an insurance program that required
the employed to pay a small contribution via a payroll tax into an insurance
fund designed to assist the unemployed to help financially strapped retirees.
●
It also helps blind, elderly, and less fortunate people.
●
Officially called Old Age, Survivors, and Disability Insurance and it is
administered by the Social Security Administration.
●
Most employed citizens pay 12.4 percent (6.2 by employer, and 6.2
by employee) of which they can start collecting at age 65.
●
Although it was one of FDR’s plans the Medicare law was passed in 1965
and it is administered by the Department of Health and Human Services.
●
It is funded by a payroll tax of 1.45 percent paid by both employee
and employer. (People who make over 200,000 by 3.8 percent)
●
Must be 65 years old to collect benefits.
●
Health insurance coverage for the poorest Americans
●
Eligibility requires minimum--income thresholds or being disabled or pregnant.
●
Citizens purchase their own health care coverage.
●
Patient Protection and Affordable Care Act in 2010 attempts to expand
coverage.
--The only portion of the Constitution that refers to welfare is in the preamble stating the government will “promote the general welfare”
--Government intervention increased during the Great Depression with The New Deal
--Food Stamps & Housing also exist for means--based needs (only if they make under a certain amount)
NON--MEANS TESTED VERSUS MEANS--TESTED
NON--MEANS-TESTED
MEANS-TESTED
Meet general requirements
(does not include financial need)
Meets requirement that
shows financial need
--Social Security (OASDI)
--Medicare
--Veterans’ Disability
--Unemployment Benefits
--Medicaid
--Supplemental Security Income
--Temporary Assistance for Needy Families
--Food Stamps
Unemployment appears in wrong category at first glance. But actually if you are fired you can collect regardless of savings.
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AP AMERICAN GOVERNMENT STUDY GUIDE
PUBLIC POLICY
DOMESTIC POLICY
ENVIRONMENTAL POLICY
ITEM
Environmental
Protection Policy Act
(NEPA) (1969)
Clean Air Act
(1970 Amendment to PCA)
Clean Water Act
(1972)
Endangered
Species Act
(1973)
Superfund
(1980)
Environmental
Protection Agency
(EPA) (1970)
Kyoto Protocol
(1997)
DESCRIPTION
Requires any government agency, state or federal,
to file an environmental impact statement with the
federal government every time the agency plans a
policy that might harm the environment, dams,
roads, or existing construction.
Calls for improved air quality and decreased
contaminants.
Regulates the discharges of pollutants into the water
Empowers the National Fish and Wildlife Service to
protect endangered species.
Congress created this to pay for waste cleanup in
the instances in which the company responsible is
unknown or has gone bankrupt.
It along with federal government require states to set
air quality standards, to reduce damage done by
automobiles, to measure city smog, and to set
environmental guidelines.
● A multi--country agreement that committed the
signing nations to reduced greenhouse gas
emissions.
● Bill Clinton liked it but ⅔ of the Senate did not
agree.
--Environment was first being seen as an issue in late 19th century, it was in the 1960’s and 1970’s (with the creation of the
majority of acts and laws listed above) in which the government started regulating business in order to protect the environment.
There has been backlash ever since.
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AP AMERICAN GOVERNMENT STUDY GUIDE
PUBLIC POLICY
DOMESTIC POLICY
LABOR POLICY
ITEM
Wagner Act
(AKA: National Labor
Relations Act) (1935)
National Labor
Relations Board
Fair Labor
Standards Act
(1938)
DESCRIPTION
Created the National Labor Relations Board
A federal executive branch commission:
● Regulates labor organization
● Hears complaints of unfair labor practices
● Ensures workers’ rights to collectively bargain with
management.
● Established minimum wage
● Set 40 hour work week
● Required overtime pay
Favored by the business community:
● Enabled states to outlaw the closed shop (a company policy
Taft--Hartley Act
(1947)
or labor contract that requires all employees to join the local union)
● State could now pass “right to work” laws
● Allowed the federal government to block any labor strike
in an industry that might put into jeopardy the “national
health or safety”
Occupational Safety
Created the Occupational Safety and Health Administration
and Health Act
(1970)
Occupational Safety A federal regulatory agency:
● Inspect factories & workplaces for occupational hazards
and Health
● They can give fines to companies and even close them
Administration
(OSHA)
down until problems are fixed.
We have a mixed economy in the United States. We have a free enterprise system in which people can own the factors of production
(land, labor, capital) instead of the government. But we also have government regulation in order to ensure the production of safe
products and safe working conditions.
--Labor regulation came into effect due to conditions under rapid industrialization.
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AP AMERICAN GOVERNMENT STUDY GUIDE
PUBLIC POLICY
DOMESTIC POLICY
EXECUTIVE INFLUENCE ON ECONOMIC POLICY
PRESIDENTIAL ECONOMIC
ADVISORS
DESCRIPTION
Council of
Economic Advisors
Three person panel in the White House Executive Office that
forecasts economic trends and makes predictions on the
economy.
Director of the Office of
Management and Budget (OMB)
Is the President’s chief accountant charged with determining
how much the federal government should spend year to
year.
Secretary of the Treasury
The Treasury Department carries out tax laws, enforces
economic sanctions, advises the president, and maintains
the country’s financial infrastructure.
--Obviously we have already talked about how Congress is influenced by interest groups. Americans public blames politicians for a bad
economy (regardless of the fact that there are many economic influences that our government does not truly control) at election time. (The President is held most accountable)
--The American people do belief that presidential philosophy and the collective attitude of Congress can influence the value of the dollar,
trade relationships with foreign nations, taxes paid into the federal purse, and the federal budget.
--People want lower taxes, no national debt, and enhanced government services (all three together is impossible)
ECONOMIC IDEOLOGY
THEORY
DESCRIPTION
●
●
KEYNESIAN
ECONOMICS
This theory believes the government should get involved to ensure the right
amount of demand. (This is referring to how much money is in the economy)
When demand is too low, the government should put more money into the
economy by reducing taxes and/or increasing government spending (Even if we
need to borrow the money)
●
If demand is too high, the government should take money out of the economy
by taking more and/spending less.
●
Multiplier Effect: Best explained with an example: a $10 billion increase in government spending
could cause the total output to rise by 15 billion (a multiplier of 1.5) because when the government
spends money to begin a construction project they hire builders who also hire bricklayers,
electricians, and plumbers who purchase supplies for their jobs who take portions of their earnings
to pay for food, shelter, transportation and clothing.
●
This theory represents a fiscally conservative approach (Also known as supply
side theorists, or supply--siders)
SUPPLY--SIDE
THEORY
●
●
This approach believes that less taxes will cause people to have more money
to spend (which they will spend) and this spending will increase purchasing, jobs,
and manufacturing. The states will collect more money in sales taxes.
If people do not spend more they will then invest their savings to make
more money thus boosting the economy.
Other books include theories:
--Monetarism: The belief that inflation occurs when too much money is chasing too few of goods. They want a predictable increase in the
money supply at a rate about equal to the growth in the economy’s productivity.
--Economic Planning: The belief that government plans, such as wage and price controls or the direction of investment can improve the
economy.
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AP AMERICAN GOVERNMENT STUDY GUIDE
PUBLIC POLICY
DOMESTIC POLICY
MONETARY POLICY VERSUS FISCAL POLICY
POLICY
DESCRIPTION
MONETARY
● How the government manages the supply and demand of its
currency and thus the value of the dollar.
● This is done by the Federal Reserve Board (The Fed).
● How the government decides to tax and spend money.
FISCAL
● This is done by primarily by Congress (President signs)
THE FEDERAL RESERVE BOARD, AKA: THE FED (MONETARY
POLICY)
POWER OF THE FED
DESCRIPTIONS
BOND RATES
This is when American citizens and foreign
governments purchase government bonds & treasury
notes (securities) with the promise the U.S. government
will pay them back with a certain amount of interest.
●
DISCOUNT RATE
The interest rate at which the government loans actual
dollars to commercial banks.
●
RESERVE
REQUIREMENTS
The Fed decides what rate those bonds pay out.
The Fed sets that interest rate
Commercial banks must have a certain amount of cash
in their vaults. This affects how much money that bank
can loan out (put into economy).
●
The Fed decides how much money banks keep on
hand
--Federal Reserve System created by Congress in 1913, is made up 3 components: Federal Reserve Board (most powerful),
Federal Open Market Committee, and 12 Regional Federal Reserve Banks.
--The Federal Reserve Board is an independent agency (Presidents can appoint (with consent) and remove with cause (although
no one ever has). The elections of board governors (members) are staggered as to not become a presidential election issue.
CONGRESS (FISCAL
POLICY)
FISCAL POLICY
DESCRIPTION
REVENUE
Taxes (primarily income) and borrowing
SPENDING
Congress (with President) creates policy which costs money
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AP AMERICAN GOVERNMENT STUDY GUIDE
PUBLIC POLICY
DOMESTIC POLICY
TAX PHILOSOPHY (FISCAL
POLICY)
TYPE OF TAX
DESCRIPTION
EXAMPLE
PROGRESSIVE TAX
The more you make the more
you pay.
Income Tax
FLAT TAX
Everyone pays the same rate.
Sales Tax
--Some people think a progressive tax is fair because the rich can afford to pay more money than the poor.
--Some people think a progressive tax is unfair because they worked harder to make more money so they should not be penalized
and also people could invest more money into the economy if they were taxed less.
--Some AP Tests include questions in which they expect you to know that a Regressive Tax affects a poorer person’s pocketbook
more than a richer person even though they are paying a flat rate (or the same percent). Example: Person A and Person B are
both paying an excise tax on cigarettes. If Person A makes 100 dollars a year and spends 1 dollar on cigarette tax that is 1% of
their income. But if Person B makes 10 dollars a year and spends 1 dollar on cigarette tax that is 10% of their income.
TAX POLICIES (FISCAL
TAX ORIGIN
NATIONAL
(Federal)
POLICY)
TYPE OF TAX
DESCRIPTION
Income Tax
Tax on money earned from working.
Estate Tax
Also known as death tax. When people inherit
money from a relative it can be taxed.
Companies pay money for obtaining profits.
(Varies between 15--35%)
Corporate Tax
Excise Tax
Pay money to purchase certain items like alcohol,
tobacco, gasoline, and airline fees.
Sales Tax
Pay money to purchase something.
Pay money to have your property (Even if you
own your house) (This is how a state raises
largest amount of revenue)
Property Tax
STATE
Business License
Pay money to operate a business.
Drivers’ License
Pay money to take test and have permission to
drive.
Marriage License
Pay money to legally wed another.
Hunting & Fishing Permits
Pay for the right to hunt or fish for a period of time.
--The United States did not have the right collect income taxes until the 16th Amendment in 1913. This amendment also allows the
government to tax incomes from successful investments, gambling winnings, earned interest, and stock dividends.
--The average U.S. citizen pays about 25.4% of income in various taxes (combining Federal and State)
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AP AMERICAN GOVERNMENT STUDY GUIDE
PUBLIC POLICY
DOMESTIC POLICY
THE FEDERAL BUDGET (FISCAL
BRANCH OF
GOVERNMENT
POLICY)
SPECIFIC AREA
Federal Agencies
EXECUTIVE
BRANCH
DESCRIPTION
Submit spending desires to
department secretaries.
Department Secretaries
Department heads may tweak
requests and send them to OMB.
Office of Management and
Budget (OMB)
Headed by a director (President’s
accountant) that considers the
needs and wants of all the federal
departments and agencies.
● The Budget Director
(in consultation with the President)
●
Council of Economic
Advisors
● Treasury Secretary.
Congress
Congressional Budget Office
(CBO)
LEGISLATIVE
BRANCH
Government Accountability
Office (GAO)
They finalize and submit the
President's budget proposal to
Congress.
Sets overall levels or revenues and
expenditures, the size of the budget
surplus or deficit, and spending
priorities.
Nonpartisan accountants that
examine and analyze the budget
proposal.
Independent and nonpartisan…it
acts as watchdog of congressional
funds and keeps track of where and
how money is spent (headed by U.S.
Comptroller General)
Congressional Committees
They examine the President’s
budget. They take up & pass
appropriation bills (spending bills).
Congress
Passes the overall budget bill then
goes to the President for a
signature.
--In summary the President submits a budget to Congress who controls the purse strings.
--Budgets have been done in this matter since the Congressional Budget and Impoundment Control Act (1974). This law also
makes it illegal for a President to impound funds (not spend them).
--The fiscal year is October 1 through September 30.
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AP AMERICAN GOVERNMENT STUDY GUIDE
PUBLIC POLICY
DOMESTIC POLICY
DEBT AND DEFICITS (FISCAL
POLICY)
TERM
DEBT
(NATIONAL DEBT)
(PUBLIC DEBT)
DESCRIPTION
The grand total that the United States owes at any one time.
DEFICIT
When the United States spends more than it takes in as revenue.
SURPLUS
When the United States spends less than it takes in as revenue.
--The United States owes money in the forms of bonds and securities (treasury notes) to American citizens and foreign governments.
--The United States is seen as a good investment because it has a strong economy and it pays it debts. It is sort of like the United States
has a huge credit card bill but it always makes some payments (when someone pays the minimum payment every month VISA is
happy).
--The United States has been in debt since 1836. It owed over 18 trillion in 2015.
--in 2006 the United States paid 226 billion for interest on the debt (this was the 3rd largest area of spending).
--The last budget surplus was under Bill Clinton (and that was super rare).
--It is difficult to compare deficits from budgets through history because of inflation. This is why economists compare this as a
percentage of the U.S GDP (gross domestic product: the total value of all goods and services produced in the United States in one
year).
--Budget related legislation:
Gramm--Rudman--Hollings Act (1985): initial deficit reduction effort (not effective).
Budget Enforcement Act (1990): Set limits on discretionary spending and created a “pay as you go system”.
Omnibus Budget Reconciliation Act (1993): incorporated a mix of tax increases and entitlement reductions.
--9/11 retaliation and housing collapse in recent history has appeared to justify deficit spending again.
ENTITLEMENT PROGRAMS (FISCAL
POLICY)
DEFINITION
Government services Congress has promised to citizens that meet
a requirement.
EXAMPLES
Social Security, Medicare, Medicaid, block grants, financial aid,
food stamps, money owed on bonds and other contractual
obligations.
PERCENT
OF BUDGET
This makes up ⅔ of the budget.
There is no way to know for sure how many people will meet the requirement that qualifies them for food stamps in January versus
February, or March. The point is the government cannot possibly know how much money it will need to pay the benefits to these
recipients. Thus spending becomes mandatory and uncontrollable.
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AP AMERICAN GOVERNMENT STUDY GUIDE
PUBLIC POLICY
DOMESTIC POLICY
TYPES OF SPENDING IN THE BUDGET (FISCAL
TYPE
UNCONTROLLABLE
SPENDING
CONTROLLABLE
SPENDING
ALSO KNOWN AS
POLICY)
AMOUN T
OF
BUDGET
MANDATORY
SPENDING
DISCRETIONARY
SPENDING
DESCRIPTION
Entitlement programs must
be funded according to
federal law. (Lawmakers do
2/3
1/3
not know how many people will
qualify month to month so they
do not actually know how much
money they are allocating to
each program)
Government writes
checks for specific items
that could always be
altered or decreased.
(Lawmakers have complete
control over how much money
they are allocating to each
program)
--Social Security makes up 20% of budget. Medicare and Medicaid make up nearly 20%. Although Congress could change the
requirements to qualify for benefits it is considered politically unsafe to suggest or make such changes.
--Defense spending makes up 20% of budget and is considered discretionary spending.
--One study claims there are reasons money is unnecessarily spent: 1) fraud and abuse 2) waste 3) pork
GLOBALIZATION
ITEM
DESCRIPTION
EFFECT OF IT
TRADE SURPLUS
When a country exports (sells)
more than it imports (purchases).
Wealth from other nations
enters the economy.
When a country imports
(purchases) more good than it
exports (sells).
The wealth leaves your
economy to enter another
country’s economy.
An agreement between the
United States, Mexico, and
Canada (it basically removes all
import taxes).
This created a battle
between corporations and
labor unions.
(FAVORABLE TRADE BALANCE)
TRADE DEFICIT
NORTH AMERICAN
FREE TRADE
AGREEMENT (NAFTA)
--Globalization: is the process of an ever--expanding and increasingly interactive world economy.
--The business community favors free trade to create a free flow of goods and services on a global scale. They also believe that the
process has decreased poverty and enhances the general quality of life in foreign nations.
--Laborers fear that American firms will outsource their labor requirements (which many have done)
144
FOREIGN
&
MILITARY
POLICY
145
FOREIGN POLICY
CONSTITUTIONAL FRAMEWORK REGARDING FOREIGN POLICY
BRANCH
FOREIGN/MILITARY POWERS
Congress has the power to declare war.
Congress funds the military, foreign endeavors, and foreign aid.
The Senate must approve appointed ambassadors and high--ranking military personnel.
CONGRESS
The Senate must ratify treaties with other nations by a two--thirds vote.
Congress has oversight of the State and Defense Departments and relevant agencies.
Congress can institute a mandatory military draft to staff the Armed Forces.
The President is Commander-in-Chief of the Armed Forces.
The President appoints ambassadors and receives foreign ministers.
THE
PRESIDENT
The President negotiates treaties with other nations.
The President issues executive orders that can impact foreign policy.
The President makes executive agreements with other heads of state.
The President commissions the military officers of the United States.
Due to constitutional principles: separation of powers and checks & balances the powers regarding foreign policy are spread out over
numerous branches. These powers has had a tremendous impact on foreign policy in the United States.
GENERAL PHASES OF FOREIGN & DEFENSE POLICY
PHASE OF POLICY
DESCRIPTION
ISOLATIONISM
The policy of avoiding participation in foreign affairs.
UNILATERALISM
A national policy of acting without consulting others.
MORALISM
PRAGMATISM
(Isolation was rarely absolute)
The policy of emphasizing morality in foreign affairs.
(Most Americans believed their country had higher moral standards than
other countries)
Taking advantage of a situation for national gain.
(When European nations went to war, we sold arms to both sides. When
opportunities to acquire more land arose, it was aggressively pursued.)
--The United States reasoning for invoking policy has shifted over the years.
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AP AMERICAN GOVERNMENT STUDY GUIDE
PUBLIC POLICY
FOREIGN POLICY
FOREIGN POLICY INFLUENCE FROM INSIDE THE GOVERNMENT
INFLUENCER
SPECIFIC
SEGMENT
DESCRIPTION
THE PRESIDENT
The president has exclusive sources of information (Department of State
diplomats, military attaches working for the Department of Defense, CIA
agents and satellites). The president has a lot of power when acting as
the Commander--in--Chief.
30,000 people work gathering information on foreign political, economic,
social, and military situations. They also staff American embassies in
over 180 countries. 30 billion was spent in 2008 in order to fund
economic development, disease prevention, nuclear proliferation,
anti--terrorism, the Peace Corps, and global peacekeeping capabilities.
DEPARTMENT
OF STATE
(Primarily Diplomacy)
THE
EXECUTIVE
BRANCH
DEPARTMENT
OF DEFENSE
The Pentagon contributes to policy formulation and provides forces to
undertake military operations. Thousands of civilians and millions of
active duty military. (Includes JCS, NSA, CIA, NSC, Dep of Homeland
Security)
JOINT CHIEFS
OF STAFF
Provides a link between senior civilian leadership in the Department of
Defense and the military. They also help coordinate between various
branches of military.
NATIONAL SECURITY
AGENCY (NSA)
CONGRESS
Intelligence agency responsible for gathering intelligence from electronic
sources and for breaking foreign information transmission codes
CENTRAL
INTELLIGENCE
AGENCY (CIA)
Executive agency responsible for collection and analysis of information
and intelligence about foreign countries and events.
NATIONAL SECURITY
COUNCIL (NSC)
Executive agency responsible for advising the president about foreign
and defense policy and events. (Include President, Vice-President, Sec
of State, Sec of Defense, Joint Chiefs of Staff, and the CIA director.
DEPARTMENT OF
HOMELAND SECURITY
Cabinet department created after the 9/11 attacks to coordinate
domestic U.S. security efforts against terrorism. (Include Coast Guard,
FEMA, TSA, Customs & Border Protection and Immigration Services)
CONGRESSIONAL
LEADERSHIP
Congress usually agrees/changes/rejects the president's policy.
Congress decided Soviet’s Sputnik was a threat so they created NASA.
CONGRESSIONAL
OVERSIGHT
Congress conducts hearings on foreign policy. Trying to force President
and CIA to inform congressional committees on covert missions. Both
houses have Foreign Relations Committees & Armed Services
Committees.
⅔ of Senate approves treaties made by Department of State.
TREATIES
APPOINTMENTS
Majority of Senate must approve presidential appointments.
APPROPRIATIONS
THE WAR POWERS ACT
OF 1973
147
Appropriation committees in Congress decide how much money
agencies and programs receive. (Step after authorization)
Limits the president (60 days) for troop deployment during peacetime
unless Congress approves an extension. Constitutional???
AP AMERICAN GOVERNMENT STUDY GUIDE
PUBLIC POLICY
FOREIGN POLICY
FOREIGN POLICY INFLUENCE FROM OUTSIDE THE GOVERNMENT
INFLUENCER
BUSINESS
(AKA: MILITARY
INDUSTRIAL COMPLEX)
THE NEWS MEDIA
THE PUBLIC
NON--GOVERNMENT
ORGANIZATIONS
(ALSO THINK TANKS)
DESCRIPTION
After World War II, the United States was in an arms
race and space race with the Soviet Union. This era led
to a relationship in which business and the military got
very close (Like more than just friends) and is known as
the Military--Industrial Complex. Because of their
shared interests in money and power they have become
influential in foreign and military policy making.
The media influences foreign policy but it does not
determine it. Vietnam is the classic example in which as
the war continued on the media coverage continued and
showed Americans the agony of war.
The American public affects foreign and military policy
through expressions of public opinion, elections, and
public action. (Example of action: protesting the draft)
There are 2,000 U.S. think tanks (400 in Washington
D.C.) that deal with foreign policy. One of the most
influential is the Council on Foreign Relations, which is
a nonpartisan think tank that studies issues of trade,
security, and relationships.
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PUBLIC POLICY
FOREIGN POLICY
FOREIGN POLICY INFLUENCE FROM OUTSIDE THE UNITED STATES
INTERNATIONAL
ORGANIZATION
CAFTA
(Central Atlantic Free Trade Agreement)
EUROPEAN ECONOMIC UNION
(EEU, EU)
G--8 SUMMITS
INTERNATIONAL MONETARY
FUND (IMF)
MULTINATIONAL
CORPORATIONS
NAFTA
(North American Free Trade Agreement)
NATO
(North Atlantic Treaty Organization)
UNITED NATIONS
WORLD BANK
WORLD TRADE ORGANIZATION
DESCRIPTION
Free trade zone (no tariffs) for this region.
Now the U.S. deals with a united Europe (They are united
on policies that affect trade and defense)
Strong economic countries meet to improve
international cooperation and economic development
(countries include: the U.S., Great Britain, Russia, China, Germany, France,
Japan, and Canada)
Group attempts to promote stable currency exchange
rates, favorable balances of payments, and economic
development through the enforcement of economic
policies.
Multinational ownership of property, financial
instruments, and companies is becoming influential.
Free trade zone (no tariffs) for Canada, Mexico, U.S.
Originally formed to protect the West from Communism.
Now includes former communist nations.
This attempts to promote world peace and human
rights. There are 192 nations in it.
This organization gives loans to developing nations.
Its main goal is to expand free trade.
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PUBLIC POLICY
FOREIGN POLICY
THE DEFENSE BUDGET
COMPONENT
DESCRIPTION
TRENDS IN SPENDING
1960’s: 40% 1980’s: 25% 1989: 20% (Post-Cold War) 2015:16%
(% of budget)
GOLD PLATING
EVIL COMPANIES
BASES
PARTISAN DIVIDE
The Pentagon pressures Congress for premium war
machines.
Private companies bid low so they can get the job. Then
they are like, “oh sorry Uncle Sam, it cost more than I
thought...so here is your new bill”
All over the United States. They create jobs. Congress
members like bringing that pork home to their districts.
Today the partisan divide is more noticeable than during Cold
War for spending. Republicans are more willing to spend on
military.
MILITARY CONFLICTS VERSUS DECLARATION OF WAR
WARS DECLARED BY
CONGRESS
1812: Against the United
Kingdom
1846: Against Mexico
1898: Against Spain
1917: Against Germany,
Austro--Hungary, Turkey
1941: Against Japan (Germany and
Italy declared on U.S. after December 8,
1941)
MILITARY CONFLICTS
(NO DECLARATIONS OF WAR)
1801: Barbary Coast
1817: Florida, Spain
1845: Mexico: Border Fight
1861: Civil War
1899: Philippines
1899: Cuban Insurgents
1900: China (Boxer Rebellion)
1917: Mexico (Pancho Villa)
1918: Russian Revolution
1950: Korea (until 1953)
1954: Guatemala
1958: Lebanon
1961: Cuba (Bay of Pigs)
1962: Vietnam (until 1972)
1965: Dominican Republic
1970: Cambodia
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1980: Iran (hostage crisis)
1983: Grenada
1983: Lebanon
1987: Persian Gulf
1989: Panama (Noriega)
1991: Iraq/Kuwait
1992: Somalia
1999: Bosnia/Kosovo
2001: Afghanistan
2003: Iraq
AP AMERICAN GOVERNMENT STUDY GUIDE
PUBLIC POLICY
FOREIGN POLICY
BRIEF HISTORY OF WAR AND DIPLOMACY (INDEPENDENCE--WWI)
PHASE
GAINING &
MAINTAINING
INDEPENDENCE
EVENT/POLICY
REVOLUTIONARY WAR
(1775--1783)
British colonies fought for independence. With the financial and
military help of British enemies, the United States successfully
becomes a nation.
WAR OF 1812 (1812--1814)
The United States fought against Britain (with Canadian colonies
and Indian support) Although the Treaty of Ghent signed in
December of 1814 ended the war the Battle of New Orleans was
fought in January of 1815 (no tech like cell phones). The United
States won defending its new(ish) sovereignty.
PURCHASING LAND
--Louisiana Purchase (1803) from France 828,000 square feet
west of Mississippi River for 15 million, nearly tripled the size of
the United States
--Texas (1845) annexed (Considered a nation at time)
--Florida (1819) from Spain
--Oregon (1846) from Great Britain
--New Mexico & Arizona (1853) Gadsden Purchase from Mexico
MANIFEST
DESTINY
(God wanted
America to spread
across the continent)
INDIAN REMOVAL ACT
(1830)
MEXICAN AMERICAN
WAR (1846--1848)
Allowed President to put Indians on unsettled lands west of the
Mississippi River in exchange for their current land. Some
tribes went peacefully but most resisted. In 1838--1839 Trail of
Tears: Cherokees were forced to relocate. 4,000 died on the
trip.
Mexico and the U.S. disagreed where Texas border ended. The
United States declared war and acquired not only the disputed
territory but also most of the land stretching from Texas to
California.
MONROE DOCTRINE
The United States would continue to stay out of European affairs,
but Europe should also avoid further colonization of lands in the
Western Hemisphere.
SPANISH--AMERICAN
WAR (1898)
Short war in which ended with Spain giving the United States
Puerto Rico, and Guam. It also gave Cuba independence.
IMPERIALISM
WORLD WAR &
ISOLATIONISM
DESCRIPTION
PHILIPPINES
The United States purchased the Philippines from Spain for 20
million. People in Philippines did not like this.
ROOSEVELT
COROLLARY
Added on to Monroe Doctrine, specifically, advocating a more
interventionist posture for the United States. “Speak softly and
carry a big stick” The U.S. would intervene in Latin American
affairs whenever it wanted.
WORLD WAR I
(1914--1918)
A global conflict with the Triple Entente versus the Central Powers
in which about 11 million military members and 7 million civilians
died. By the end of the war the German Empire, Russian Empire,
Austro--Hungarian Empire and the Ottoman Empire had ceased to
exist.
LEAGUE OF NATIONS
Senate refused to sign treaty that would have made the United
States a member of the League of Nations (like United Nations).
ISOLATIONISM
KELLOGG--BRIAND PACT
(1928)
The U.S. went back to wanting to stay out of European affairs
(last time thus far).
65 countries (one being U.S.) agree to settle disputes peacefully
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PUBLIC POLICY
FOREIGN POLICY
BRIEF HISTORY OF WAR AND DIPLOMACY (WW2--COLD WAR HEATS UP)
PHASE
EVENT/POLICY
DESCRIPTION
WORLD WAR II
(1939--1945)
In 1941, U.S. declared war against Japan following the bombing of
Pearl Harbor. The U.S. joined the Allies including the Soviet
Union, the United Kingdom, France and China. Nazi Germany
surrendered in 1945. Japan surrendered after President Truman
dropped atomic bombs on Hiroshima and Nagasaki. The United
States emerged as the leader of the free world. The Soviet Union
was the other world superpower.
WORLD WAR II
UNITED NATIONS
CONTAINMENT
TRUMAN DOCTRINE
COLD WAR
Committed to limiting Soviet Union influence (communism)
Enacted in 1947, a policy to halt Soviet Union expansion by
providing aid to all democratic nations threatened by
communism.
DOMINO THEORY
If one country becomes communist adjacent countries would
follow.
MARSHALL PLAN
(1948)
European Recovery Act. Over 2 years the United States provided
$12 billion in economic aid to Europe. Economic aid has become
the cornerstone of American foreign policy.
MUTUALLY ASSURED
DESTRUCTION (MAD)
In 1949, the Soviet Union conducted its first successful detonation
of a nuclear bomb. This lead to an arms race. Neither nation
wanted a catastrophe like Hiroshima and Nagasaki. Thus both
sides refrained from using such weapons.
KOREAN WAR
(1950--1953)
COLD WAR
HEATS UP
46 nations gathered to form group that focused on maintaining
peace while fostering cooperation but committed to using force if
necessary to stop aggressor nations.
CUBAN MISSILE CRISIS
VIETNAM WAR
(1964--1973)
The United State is allied with South Korea to defend south of the
38th parallel from the communist North Korea. Today 25,000 help
defend the line dividing North and South.
In 1962, there was standoff between the United States and Soviet
Union when the Soviet Union had installed missiles in Cuba (90
miles from the United States). It resulted in an executive
agreement and eventual treaties on disarmament.
North Vietnamese Communists defeated their colonial parent,
France. It was a long defensive war characterized by television
coverage of deaths and public dissent back home. The U.S.
eventually pulled out and lost Vietnam to communism.
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PUBLIC POLICY
FOREIGN POLICY
BRIEF HISTORY OF WAR AND DIPLOMACY (COLD WAR TO CONCLUSION)
PHASE
EVENT/POLICY
DETENTE
COLD WAR
COOLS BACK
DOWN
In 1963, this treaty prohibited nuclear weapon tests under water,
in the atmosphere, or in outer space.
NUCLEAR
NON--PROLIFERATION
TREATY
The United States and Britain agreed not to transfer nuclear
technology from one country to another.
ANTI--BALLISTIC
MISSILE TREATY
(ABM) (1972)
It barred the U.S. and the Soviet Union from deploying nationwide
defenses against strategic ballistic missiles.
SALT I (Strategic arms
limitation talks I) (1972)
It essentially froze the military balance between the two nations.
SALT II (Strategic arms
limitation talks II) (1979)
The Senate never ratified this treaty. The treaty called for both
nations agreeing to ban the manufacture of new weapons
systems and encourage more weapons reduction.
NORMALIZATION
By 1971, the United States began recognizing China as a country
instead of Taiwan
SHANGHAI
COMMUNIQUE
It was a “One China” Policy. This refers to keeping a close bond
with the Republic of China (Taiwan) while cooperating with
mainland China. (Carter followed up by establishing full
diplomatic relations with China)
CAMP DAVID ACCORDS
In 1978, Carter brought Egyptian President Anwar al--Sadat and
Israeli Prime minister Menachem Begin together at Camp David.
Israel agreed to withdraw from the Sinai Peninsula.
IRAN HOSTAGE CRISIS
The United States sided with the shah of Iran (Dictator of Iran).
Radical revolutionaries overthrew the regime in 1979 and took
members of U.S. Embassy hostage. All hostages were returned
the day Reagan was sworn into office.
STRATEGIC
DEFENSE INITIATIVE
(SDI) (STAR WARS)
Reagan had harsher rhetoric with Soviet Union. He want to
spend more on arms. This multi--billion dollar plan was envisioned
to intercept Soviet missiles for U.S. targets. It never happened.
IRAN--CONTRA SCANDAL
PERESTROIKA (1980’s)
FALL OF THE
SOVIET UNION
(USSR)
A softening of tensions between the U.S. and the Soviet Union..
Cooperation instead of competition.
LIMITED NUCLEAR
TEST BAN TREATY
NIXON & CHINA
COLD WAR
UNDER
CARTER &
REAGAN
DESCRIPTION
GLASNOST (1980’s)
FALL OF BERLIN WALL
PEACE DIVIDEND
A 1980 revolution in Nicaragua left a Marxist regime, the
Sandanista government, in control. The Reagan administration
helped the Contras overthrow this Marxist government. The U.S.
secretly sold arms to Iran in exchange for American hostages in
Iran. The money from the sale went to the Contra rebels.
Economic reconstruction in USSR (Premier Mikhail Gorbachev)
Understanding or openness between USSR and U.S.
In 1989, the wall that separated East and West Berlin came down.
The payoff of peace after so much investment to win the
ideological and political struggle. U.S. can act as humanitarian.
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PUBLIC POLICY
FOREIGN POLICY
BRIEF HISTORY OF WAR AND DIPLOMACY (GULF WAR--GEORGE W. BUSH)
PHASE
GULF WAR
(GEORGE H. W.
BUSH)
BILL CLINTON &
ENLARGEMENT
EVENT/POLICY
OPERATION
DESERT STORM (1991)
POWELL DOCTRINE
ENLARGEMENT
DAYTON ACCORDS
9/11
SEPTEMBER 11
AND AFTER
(GEORGE W.
BUSH)
DESCRIPTION
45 day war in which the United States forced Iraqi dictator
Saddam Hussein to withdraw out of Kuwait.
Have a clear objective, use overwhelming force, get out quickly.
Colin Powell (Joint Chiefs of Staff Chairman).
Providing diplomatic and humanitarian engagement in the world in
order to increase the zone of democracy.
A peace treaty between the presidents of Bosnia, Croatia, and
Serbia to end the conflict in the Balkans.
September 11th 2001, al Qaeda sought revenge on the United
States for its presence in the Middle East and its involvement in
the Muslim world. Four commercial planes were hijacked. Two
planes hit the World Trade Center towers in New York City,
another hit the Pentagon in Washington, and the fourth crashed in
a field near Shanksville, Pennsylvania after passengers stormed
the cockpit. Nearly 3,000 people were killed in these attacks.
WAR ON TERRORISM
Unofficial “War on Terror” declared by George W. Bush. He
blamed the Taliban of Afghanistan for allowing al Qaeda to
operate there. He also expressed concern about the Axis of
Evil (Iran, Iraq and North Korea).
OPERATION
ENDURING
FREEDOM (2001--2014)
The U.S. military entered Afghanistan (October of 2001) and
quickly ousted the Taliban regime. Troops continue to look for
enemies and rebuild the country. In December of 2014, U.S. and
NATO ended their combat mission. They were still some troops
training Afghanistan soldiers.
OPERATION
IRAQI FREEDOM
(2003--2011)
SIDENOTE:
in September 2010 it was renamed:
OPERATION NEW
DAWN (2010--2011)
BUSH DOCTRINE
Saddam Hussein would refuse to allow UN weapon inspectors
into Iraq. Iraq was bound to international treaties that did not
allow that country to have weapons of mass destruction. Hussein
did have a weapons program and he did have thousands of his
own people killed, but he ended his weapon program in the late
1990’s. But he would not let weapon inspectors in. The United
States invaded in spring of 2003, took Baghdad within a few
months (Mission Accomplished banner). Then Saddam’s troops
went into hiding in civilian population. In December of 2011, the
last U.S. troops left the nation to return home.
It defends the United States and U.S. interests at home and
abroad by identifying and destroying the threat before it reaches
U.S. borders. It also centers on preemption, nation building, and
humanitarian endeavors.
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PUBLIC POLICY
FOREIGN POLICY
BRIEF HISTORY OF WAR AND DIPLOMACY (OBAMA--TODAY)
PHASE
BARACK
OBAMA
EVENT/POLICY
DESCRIPTION
REDUCING
GUANTANAMO
He promised emptying Guantanamo Bay (a prison for
suspected terrorists in Cuba) during the election of 2008. As
of 2016 it was still open.
KILLING
OSAMA BIN LADEN
Plan partly designed by CIA and carried out by Navy SEALS,
the United States killed Osama Bin Laden in Pakistan on May
2, 2011.
USE OF DRONES
The United States has hundreds of drones or UAVS (Unmanned
Aerial Vehicles). They are either driven by a computer program
or a pilot on the ground in the United States.
NATIONAL SECURITY
AGENCY SPYING
PROGRAMS
This probably came into effect after 9/11 during the Bush
presidency. But there are reports that Obama’s administration
uses the program as well. Defenders of the government say that
we must use information to protect the United States from
terrorists. Opponents of the program question if it violates our
civil liberties.
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Unit 6: Public Policy
(2006 Q 2) In recent decades, entitlement programs have constituted a substantial portion of the United States
federal budget. Social Security is the largest entitlement program in the United States. From the information in
the chart above and your knowledge of United States government and politics, perform the following tasks.
A. Define entitlement program.
B. What is the primary source of revenue for the Social Security program?
C. Identify one threat to the future of the Social Security program should the trends depicted in the chart below
continue.
D. Describe one demographic trend that threatens the future of the Social Security program AND explain how it
is responsible for the threat that you identified in (c).
E. Explain how any one of the trends in the chart below would change if the age of eligibility for Social Security
were raised.
http://apcentral.collegeboard.com/apc/public/repository/_ap06_gopo_us_sg.pdf
http://apcentral.collegeboard.com/apc/members/repository/ap06_usgopo_samples_q2.pdf
http://apcentral.collegeboard.com/apc/members/repository/ap06_go-po_us_q&a_final.pdf
(2008 Q 2) A number of factors enable presidents to exert influence over Congress in the area of domestic policy.
However, presidents are also limited in their influence over domestic policymaking in Congress.
A. The Constitution grants the president certain enumerated powers. Describe two of these formal powers
that enable the president to exert influence over domestic policy.
B. Choose two of the following. Define each term and explain how each limits the president’s ability to
influence domestic policymaking in Congress.
 mandatory spending
 party polarization
 lame-duck period
http://apcentral.collegeboard.com/apc/public/repository/ap08_gopo_us_sgs.pdf
http://apcentral.collegeboard.com/apc/public/repository/ap08_us_gopo_q2.pdf
http://apcentral.collegeboard.com/apc/public/repository/ap08_us_gopo_qa.pdf
(2008 Q 3) Fiscal policy and monetary policy are two tools used by the federal government to influence the United
States economy. The executive and legislative branches share the responsibility of setting fiscal policy. The Federal
Reserve Board has the primary role of setting monetary policy.
A. Define fiscal policy.
B. Describe one significant way the executive branch influences fiscal policy.
C. Describe one significant way the legislative branch influences fiscal policy.
D. Define monetary policy.
E. Explain two reasons why the Federal Reserve Board is given independence in establishing monetary policy.
http://apcentral.collegeboard.com/apc/public/repository/ap08_gopo_us_sgs.pdf
http://apcentral.collegeboard.com/apc/public/repository/ap08_us_gopo_q3.pdf
http://apcentral.collegeboard.com/apc/public/repository/ap08_us_gopo_qa.pdf
(2014 Q 3) Congress and the president both have a role in making foreign policy. Despite recent expansions in
presidential power, there are still limits on presidential decision making in foreign policy.
(a) Describe two enumerated powers Congress has in making foreign policy.
(b) Describe two expressed powers the president has in making foreign policy.
(c) Explain how executive agreements expand the president’s ability to implement foreign policy.
(d) Explain how one of the following can limit the president’s ability to implement foreign policy.
 Elections
 Presidential approval ratings
http://media.collegeboard.com/digitalServices/pdf/ap/ap14_united_states_government_and_politics_%20scoring_guidelines.pdf
http://media.collegeboard.com/digitalServices/pdf/ap/apcentral/ap14_us_govt_and_politics_q3.pdf
http://media.collegeboard.com/digitalServices/pdf/ap/apcentral/ap14-us-gov-pol-qa.pdf
CHAPTER 16
POLITICS AND THE ECONOMY
CHAPTER OVERVIEW
Politics and economics make up the foundation of all governments. Without the combined
systems, neither would function. Yet each is an independent system with precise definitions of its
own. Understanding these very basic facts is the theme of this chapter.
There are parts of the economy that are clearly dependent on the political health of the
nation. The American public is beginning to focus even more attention on both politicians and
their management of the nation’s income than in years past.
Examining the budget, debt, income, expenditures, and deficit, the chapter clearly
defines the scope of the nation’s budgetary concerns and the solutions attempted, failed, and
proposed.
CHAPTER THEMES
· Political and economic systems are the foundations of government operations.
· The American economy is stable compared to that of many other nations.
· Uncontrollable expenditures programmed into budgets during years past create almost
impossible tasks for both budget analysts and elected officials.
· The debt burden of the United States is high, but not out of line with earning and production
capacity.
· Taxes are received from relatively few sources.
· Theories of tax methods and their institutionalization vary with both the government and
leaders of the government.
· Political conflict over how the surplus should be spent.
CHAPTER OUTLINE
I. Politics and Economics
A. Economics is defined by Paul Samuelson as “deciding what shall be produced, how, and for
whom.”
1. The definition is similar to Laswell’s definition of politics as “who gets what, when,
and how,” and the relationship is obvious.
a. Both economic and political systems involve collective decisions.
b. Both systems rely on government coercion for implementation.
2. A free market economy involves individual decisions.
3. A free market economy relies on voluntary exchange for implementation.
B. The United States is predominantly a free market economy.
II. Economic Decision Making (involves both fiscal and monetary policy)
A. Both Congress and the president share responsibility for economic policy.
1. The Constitution places all taxing, spending, and borrowing powers in the hands of
Congress in Article I (fiscal policy).
a. For 150 years, the power to spend was seen as limited to identified purposes.
b. The Supreme Court then said Congress may spend on anything that served the
general welfare.
c. The Constitution does not require a balanced budget.
2. The president’s input into economic policymaking is in presenting the budget of the United
States government to Congress.
a. The budget sets out the president’s recommendations for spending based on revenue
estimates
b. Deficits and the need to borrow are projected.
B. The president’s recommendations to Congress are influenced by input from three executive offices.
1. The Office of Management and Budget (OMB) is responsible for:
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Copyright © 2009 Pearson Education, Inc. Publishing as Longman
a. Preparing the budget
b. Ongoing supervision of budget requests
2. The Department of the Treasury and the secretary of the Treasury are
responsible for:
a. Estimating revenues
b. Drawing up new tax proposals
c. Forecasting the amount of revenue new tax proposals might produce
d. Managing the national debt
e. Selling government bonds to pay debts and pay down the deficit
f. Determining interest rates on federal bonds
g. Paying interest charges on the national debt—about 7% of all federal spending
3. The Council of Economic Advisers (CEA) is charged with responsibility for:
a. Forecasting economic conditions
b. Recommending economic policies
C. A major player in directing monetary policy in the nation is the Federal Reserve Board.
1. The Fed is mostly independent of the president and Congress, though members
are appointed by the president and confirmed by the Senate.
a. There are seven board members each appointed for fourteen-year terms.
b. A chairman of the board is appointed for four years.
c. No member or chair may be removed except for a just cause.
d. Since creation of the board in 1913, no member has ever been removed.
2. The job of the Fed is to:
a. Regulate the money supply (private borrowing, interest rates)
b. Oversee the nation’s Federal Reserve Banks
c. Determine reserve requirements of banks
d. Monitor the health of the banking industry
3. The Fed’s influence over the economy is based on its ability to
a. Raise the reserve requirement of banks, which reduces available money to loan
b. Raise discount rates, increasing the cost of borrowing for
c. Sell off government bonds, reducing money that reserve banks have to lend
d. Expand the money supply in times of recession by doing the opposite of
these things
III. Measuring the Performance of the American Economy
A. The United States produces over $16 trillion worth of goods and services each year—more than
$50,000 worth of output for every person.
B. The gross domestic product (GDP) is the primary measure of the economy’s performance.
1. The GDP is the nation’s total production of goods and services in a single year, and may
indicate the nation’s economic health.
2. Economists and politicians do not agree on the meanings of GDP indicators.
C. The unemployment rate is the percentage of people looking for work in the
civilian labor force, or waiting to return to or begin a job.
1. The unemployment rate is measured monthly.
2. Generally unemployment lags behind GDP growth, moving down only after recovery has
begun.
D. Inflation is a general rise in prices of all goods and services.
1. Inflation
a. Erodes savings
b. Reduces purchasing power
c. Reduces savings incentives
2. At present the inflation rate is fluctuating between 1 and 3 percent.
IV. Government Spending, Deficits, and Debt
A. Government spending affects the economy dramatically.
1. All government expenditures combined amount to about 35 percent of the nation’s GDP.
2. The federal government alone spends about 24 percent of the nation’s GDP.
B. Uncontrolled expenditures/mandatory spending are those committed to in
years past and that cannot be ended without serious political consequences.
1. Entitlement programs account for more than half of all federal spending, including
the following groups:
a. Social Security, Medicare, Medicaid
b. Welfare, food stamps
c. Federal employees’ retirement, veterans’ benefits
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Copyright © 2009 Pearson Education, Inc. Publishing as Longman
2. Indexing of benefits is a costly program that increases benefits payments based on the
inflation rate, or tied to the consumer price index; indexed benefits include:
a. Social Security, Supplemental Security Income
b. Food stamps
c. Veterans’ benefits
3. Increasing costs of in-kind benefits programs have risen faster than cash benefit programs.
4. Interest payments on the national debt makes up about 8 percent of total federal spending.
5. Backdoor spending is found in government-guaranteed loans that create obligations, not
direct expenditures.
a. FHA housing
b. Guaranteed student loans
c. Veterans’ loans, etc.
C. Entitlements, as well as other uncontrolled expenditures, could be cut, but the political
consequences are such that no party is even willing to seriously propose such drastic actions.
D. Washington policymakers consider spending that is not previously mandated by law to be
discretionary.
E. Almost 40% of the federal budget is officially designated as discretionary but this includes
spending for national defense.
F. Nondefense discretionary spending is less than 20% of the federal budget and includes
everything from national parks to federal prisons, from highways to air travel.
G. The accumulated national debt is over $16 trillion—interest payments equal 8 percent to
increase total federal spending.
H. Government debt is owed mostly to U.S. banks, financial institutions, and
private citizens who buy Treasury bonds.
I. In only 4 of the last 40 years (1998-2001) has the federal government not incurred a
deficit.
J. Congress by law sets a ceiling for the national debt thus forbidding the U.S. Treasury
Department form exceeding this dollar limit.
K. During the Obama administration, Republican Congresses threatened not to raise the
debt ceiling.
L. Failure to raise the debt ceiling would result in the U.S. defaulting on its bonds coming
due for the first time ever in its history.
M. The ability to float such a huge debt depends on confidence in the U.S. government’s
ability to pay interest on its debt, that it will pay off the principal of bonds when they
come due, and the value of those bonds will not decrease due to inflation.
N. As long as banks, governments, and individuals are willing to buy U.S. Treasury bonds,
the national debt can be financed forward.
V. The Tax Burden
A. Federal revenues are derived from a limited number of resources.
1. Individual income taxes account for the largest percent of the federal government’s
income: six rates – 10, 15, 28, 33, and 35 percent.
a. Tax expenditures are revenues the government loses because of
exemptions, exclusions, deductions, and special treatment provisions in tax laws.
b. Tax avoidance and tax evasion are estimated to cost the government about $200 billion a
year in revenue
2. Corporate income taxes provide 10 percent of the amount of the federal government’s
total income.
3. Social Security taxes provide the second largest source of federal government’s
income.
4. Estate and gift taxes begin on estates over $1 million dollars, levying a tax range of 18–45
percent.
5. Excise taxes on liquor, tobacco, gasoline, telephones, air travel, and customs taxes on imports
provide about 3 percent of total federal revenues.
B. The possibilities of further taxes are often made because Americans’ tax burden is comparatively
modest relative to the burdens on other nation’s citizens.
VI. Tax Politics
A. The politics of taxation centers on which group should bear the most responsibility for
taxes.
1. Progressive taxation requires that higher income groups pay higher percentages of
income in taxes. Arguments against such taxes include:
a. Progressivity penalizes initiative, enterprise, and risk taking.
b. By taking more income from high-income groups, governments take the
money that is most likely to go back into business.
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B.
C.
D.
E.
F.
2. Reagan’s program reduced upper income taxes to stimulate the economy.
3. George H. W. Bush’s agreement with the Democratic-controlled Congress to raise taxes cost
him the election.
4. Proposals to “soak the rich” are always politically popular.
5. Regressive taxes take a larger portion of income from lower-income earners.
6. Proportional (flat) taxation requires all income groups to pay the same
percentage of income in taxes.
George W. Bush’s tax cuts.
1. A tax cut would revive the economy.
2. The 2003 tax package contained new credits and special treatments (examples — 25
percent tax on dividends, $1,000 child tax credit).
3. Democrats believed cuts would benefit the rich and add to the deficit.
Upper-income Americans pay a much larger share of federal income tax even though their rates are
lower.
The top half of income earners pay virtually all of the nation’s income tax.
Capital gains tax taxation—the top marginal rate is 15 percent—raises the question of why
working income should be taxed at a higher rate than“investing” income.
Republicans favor low capital gains tax rates.
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CHAPTER 17
POLITICS AND SOCIAL WELFARE
CHAPTER OVERVIEW
Social welfare triggers more political reactions than almost any other domestic issue.
Government is expected to respond, and politicians know their constituents expect support, or
their jobs may be at stake.
However, one sector of society, amounting to as much as 20 to 25 percent, has little voice of
its own. Those living on or near the poverty line must rely on others to make their cases for
assistance. Lobbyists, both those working for purely charitable considerations and those working
to maintain their security by serving the poor, regularly speak on behalf of the underclass.
Responses vary, with leadership, but since the 1930s an increased amount of federal expenditure
has been committed to assist the poor improve their lives, or even in survive. The poor are not
limited to any one age nor to any one race, but are found throughout the nation in varying
degrees of poverty. Too little has been accomplished in directly addressing the problems, though
some argue that too much assistance is, itself, the cause of the poverty.
Another group in American society has a much different set of concerns, but they do have
political clout. Senior citizens have been successful in achieving benefits, and they intend to
maintain their security even at the cost of severing politicians from their positions — a threat they
are capable of implementing given the ever-increasing number of senior citizens.
Finally, addressing health care concerns provokes heated debate in present-day political
scenes, especially in a nation of citizens with a growing awareness of the government’s failure to
provide access to high quality, cost-efficient health care.
This chapter addresses all of these concerns, detailing the causes and resolutions proposed
for each of the major groups associated with social welfare in the United States.
CHAPTER THEMES
· Social welfare programs are divided into the groups of social insurance programs and social
welfare programs.
· Poverty in America is not defined by age, race, or gender, though the experience is apparent in
each of the groups.
· Senior citizens may be part of the group defined as poor, but they are not a group without
extensive political power.
· The quality of health care in America does not equal the quality found in other major, less
wealthy democracies.
· Health care provision is particularly lacking in access and cost-effectiveness.
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CHAPTER OUTLINE
I. Power and Social Welfare
A. Social welfare policy determines who gets what from government.
1. Social welfare activity constitutes the largest and most rapidly growing
expenditure in the federal budget.
a. More than half of federal outlays go to direct, or transfer payments to
individuals.
b. Government payments to individuals account for a substantial percent of the GDP.
2. An estimated 45 to 50 million Americans live below the poverty line.
B. The poor are not the primary recipients of social welfare spending.
1. Most social welfare spending goes to Social Security and Medicare
recipients—the nonpoor.
2. Less than one-third of federal social welfare spending is means-tested spending, that
is, distributed on the basis of the recipient’s income
3. The middle class are the major beneficiaries of the social welfare system.
II. Poverty in the United States
A. In 2011 the poverty line for a family of four was approximately $22,350 per year.
B. Most poverty is not long term, though for some there is persistence of poverty.
1. In the past ten years, 11 to 15 percent of the total population were declared poor in any
year.
2. About 6 to 8 percent of the population remains in poverty for over five years.
a. Prolonged poverty creates a permanent “underclass” with social ills
including teen pregnancy, family instability, drugs, crime, apathy, etc.
b. Government programs such as job training, etc., rarely reach the
underclass.
3. Poverty is more frequent among female-headed households.
a. Births to teenage mothers have actually declined in recent years.
b. Illegitimacy has added to the roles of poverty for both single mothers and their children.
4. Inner cities have concentrations of disadvantaged people because:
a. Jobs are not available
b. Working and middle-income families have left inner cities
c. Role models for youth are infrequent
d. Poor schools weaken the work ethic
e. Crime activities are high
f. Family units are disorganized
III. Social Welfare Policy
A. Today almost one-third of the U.S. population receives some form of government
benefit.
1. Major social welfare programs are either:
a. Social insurance
b. Public assistance
2. The distinction between social insurance and public assistance is often a political
issue, because:
a. Social insurance is awarded if contributions toward its receipt were made—
Social Security, Medicare, etc.
b. Public assistance is defined as welfare, because recipients did not
contribute directly to the assistance programs.
B. Programs supporting social insurance and public assistance are separately titled.
1. Social insurance programs
a. Social Security is the largest of all entitlements, regularly adjusted for cost of living
and derived from contributions by workers and employers
b. Unemployment compensation temporarily replaces part of wages upon loss of a job.
c. Medicare provides health care insurance to the elderly and disabled
2. Public assistance programs
a. Supplemental Security Income (SSI) provides monthly cash payments to the needy,
those 65 years or older, the blind, and the disabled
b. Aid to Families with Dependent Children (AFDC)—now called Temporary
Assistance to Needy Families (TANF)—provides monies to states for use in aiding
families with needy children
c. Food stamps provide low-income households with coupons redeemable for food
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3. Earned income tax credit is a “negative” income tax that helps the poor.
4. Medicaid provides health care to the poor.
IV. Senior Power
A. Senior citizens are the most politically powerful age group in the United States.
1. Senior citizen influence is associated with being:
a. 28 percent of the voting population
b. About one-third of voters on election day — turnout rates that give senior citizens
almost twice the power of voters between 18 and 21.
c. Well represented in Washington by powerful lobbyists—AARP, etc.
d. A group that no elected officials can afford to offend
2. The influence of seniors will continue and even increase as baby boomers reach
retirement ages in 2010. By 2030 they will comprise about 20 percent of the population.
B. The Social Security Act of 1935 was created as a trust fund to be built up with contributions paid
by working people.
1. Plans for building a reserve fund for Social Security began to fail because
a. Americans live longer than they did in 1935, thus drawing more benefits
b. There were ten workers to each retiree, now the figure is three workers for
each retiree. Today the dependency ratio is closer to two workers for each retiree.
2. Cost-of-living adjustments are given annually. Because most workers don’t receive the
same protection, COLAs improve seniors’ economic well-being in relation to that of the
general population.
3. Affluent citizens receive more than they paid in, and they don’t need the income for
survival.
C. Social Security is the most expensive program in the federal budget, but it is also the most
politically risky to touch.
1. Though lawmakers can reduce entitlements, including Social Security and Medicare,
their potential for “de-election” is risked.
2. Suggestions for reductions in seniors’ concerns can prompt extensive outcrys and a
carefully listening public—each of whom either is a senior or will become one in the near
future.
D. Can Social Security be “saved”? The population is aging and there will be increases in
the dependency ratio. One idea: private investment accounts.
V. Politics and Welfare Reform
A. The clash of values in welfare policy is a regular feature of heated political debate.
1. Americans worry that welfare encourages dependency.
2. Americans also believe government should aid those unable to care for themselves.
B. A political consensus grew over the years that long-term social dependency
had to be addressed in welfare policy.
C. In the mid 1990’s the Republican-controlled Congress sponsored a welfare
reform bill to end Aid to Families with Dependent Children (AFDC)
D. The Republicans devised a “devolution” of responsibility to the states
federal block grants and the program became known as Temporary Assistance to Needy
Families (TANF)
E. Under this program, lump-sum allocations are given to states for cash
welfare payments, with benefits and eligibility requirements decided by the states.
F. Furthermore, conservatives in Congress imposed tough-minded “strings” to
state aid
1. 2 year limit on continuing cash benefits
2. 5 year lifetime limit
3. “Family cap” that would deny additional cash benefits to women already on welfare who
bear more children
4. Denial of cash welfare to unwed parents under 18 years of age unless they live with an
adult and attend school
VI. Health Care in America
A. The United States ranks well below other advanced democracies in measures of the health of its
people.
1. The leading causes of death today are associated with factors over which doctors and
hospitals have no direct control.
2. Better health is likely to be found in better personal habits and lifestyle, rather than in
medical care.
B. About 85 percent of all Americans are covered by government or private health insurance.
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1. Government covers about 27 percent of the nation’s population through:
a. Medicare
b. Medicaid
c. Military and veteran care
d. Other programs
2. Private insurance accounts for about 58 percent of health costs.
3. Forty-five million Americans have no health insurance.
C. About 15 percent of the population does not have medical insurance, including:
1. Workers and dependents with employers who do not offer insurance
2. Unemployed people not eligible for Medicare or Medicaid
D. Even those with coverage may not have sufficient coverage to avoid personal financial disasters
if major costs develop.
1. Deductibles exist in all programs, and can add up with low income or with high medical
expenses.
2. Many doctors do not accept Medicare as full payment.
3. Many programs do not cover costs for eyeglasses, hearing aids, dental work, etc.
4. Long-term care is seriously short or underfunded.
5. Nursing home care insurance is too costly for many.
6. Medicare has tried to control rising costs
E. Costs of medical care have spiraled for many reasons:
1. Advances in medical technology
2. Malpractice insurance
3. Multiple consultation requirements
4. Unnecessary expansion of hospital facilities
F. Managed care controversies
1. Development of discounts with doctors, etc., in preferred provider organizations
(PPOs)
2. Managed care units
3. Health maintenance organizations (HMOs) — Over 30 percent of Americans are enrolled
G. Medicare is a two-part program that helps elderly and disabled persons pay health costs.
1. Part A is hospital insurance.
2. Part B is optional supplemental medical insurance that pays 80 percent of covered doctor
and outpatient charges.
H. The federal government provides funds under Medicaid to enable states to
provide medical services for low-income persons.
I. Unlike Medicare, Medicaid is a welfare program designed for needy persons; no prior
contributions are required and Medicaid recipients are typically welfare recipients also.
J. Medicaid is the costliest of all public assistance programs with states paying
about 45 percent of Medicaid costs, with the federal government paying the remainder.
K. Under the State Children’s Health Insurance Program (SCHIP), the federal government
provides grants to the states to extend health insurance to children who would not otherwise
qualify for Medicaid.
VII. Obama’s Health Care Transformation
A. In 2010, President Obama and a Democratic-controlled Congress acted to transform
health care in America with the comprehensive Patient Protection and Affordable
Care Act of 2010.
B. National health care reform had been attempted unsuccessfully by past presidents, including
FDR, Truman, and Clinton.
C. There were many provisions in the Affordable Care Act of 2010:
1. Individual mandate
a. Every American required to purchase health insurance
b. If not they will get a tax penalty up to 2.5% of their household income
c. IRS enforces this mandate
2. Employer mandate
a. Employers with 50 or more workers are obliged to provide health
insurance to their employees
b. Companies that fail to do so will face substantial fines
c. Small businesses are offered tax credits for offering their employees
health insurance
3. Medicaid expansion
4. Health insurance exchanges
5. Taxes
D. Congress rejected President Obama’s proposed “public option” a government-run nonprofit
health insurance agency that would compete with private insurers
E. The Congressional Budget Office estimated the cost of health care reform at nearly $1
trillion.
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VIII. Challenges to “Obamacare”
A. Republicans in Congress were unanimously opposed to the Patient Protection and
Affordable Care Act of 2010
B. They promised to repeal it, if possible, of if not, to obstruct its implementation
C. Since its passage in 2010, multiple court challenges to Obamacare have been heard,
however none have succeeded yet in overturning the law
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CHAPTER 18
POLITICS AND NATIONAL SECURITY
CHAPTER OVERVIEW
The struggle for power among nations has consumed the energies and economic
resources of nations since their existence. Though such struggles may take the form of
military actions, diplomatic activities, and the most intense maneuvering skills of political
leaders, it is the people of the nation who are threatened when national security is at stake in
quests for power.
How is power among nations distributed, used, and abused? This chapter summarizes
the theories of power struggles and how they have failed and succeeded.
A historical perspective moves the reader through each phase of the twentieth century’s
wars or military actions, and assesses how they have fit into the power struggle among
nations. From World War I to the present, when the struggle is to learn to live with the
consequences of peace, the security of the United States has been threatened. We, as
citizens, have faced war, military action, “face-downs,” and now the fragility of peace.
CHAPTER THEMES
· The struggle for power is global.
· Involvement in acquiring power from another nation as the superior force in the world
is costly in time, manpower, and money.
· There have been many tools used in attempts to maintain peace and end war.
· The United States and the Soviet Union confronted each other for almost a half-century
in a nonshooting Cold War.
· Confrontation without war is almost as costly, in dollars and nerves, as war.
· With nerves of steel, American presidents stood down the threats of Soviet
leaders.
· The Cold War ended with the dissolution of the Soviet Union.
· Threats to national security have still not been eliminated; for the moment, their source is
from a variety of nations.
· Consequences of peace are today unknown.
CHAPTER OUTLINE
I.
Power among Nations
A. With the end of World War II, attempts to maintain global peace resulted in creation of
the United Nations.
1. Collective security ideas guided creation of the charter of the United Nations, which
provides for:
a. A Security Council composed of member nations: five permanent members,
with power to veto any action by the Security Council
b. A General Assembly composed of all member nations, each holding a single vote
c. A Secretariat headed by a secretary-general headquartered in New York
d. Special bodies to handle specialized affairs
2. During the Cold War—after World War II until the early 1970s—the UN was ineffective
in dealing with U.S. and USSR conflicts.
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3. Regional security grew out of the general failures of the UN to attain global stability. So
regional security developed, with nations aligning under mutual protection pacts/treaties.
a. The North Atlantic Treaty Organization (NATO) was composed of fifteen
Western nations pledging to protect one another.
b. NATO has expanded to include Poland, Hungary, and the Czech Republic. In
2004, Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia, and Slovenia
were admitted.
c. NATO forces have been sent to Bosnia and Kosovo.
d. The Warsaw Pact was an alignment of Eastern European satellite nations pledging to
secure one another from threats of NATO nations.
4. In 1989 the Warsaw Pact disintegrated with the collapse of communism in Eastern
Europe.
a. The Berlin Wall fell, and Germany was reunified in 1990.
b. Communism was ousted from power in Moscow, and the USSR collapsed in
1991.
5. With the Cold War over, the United Nations is viewed as a potential global organization
for ordering relations among nations.
a. The UN has displayed cooperation in dealing with regional conflicts.
b. The UN has also become a costly bureaucracy.
II. The Legacy of the Cold War
A. The United States and the Soviet Union were engaged in an extended struggle for world
dominance for forty years.
1. After World War II, during which the U.S. and USSR were allies, the U.S. reduced its
military forces; the USSR increased its Red Army to maintain communism in Eastern
Europe.
a. Germany was divided between east and west.
b. Churchill identified an iron curtain between the allies of the two superpowers.
c. USSR forces threatened expansion into Greece and Turkey.
2. In response to USSR expansion, President Truman announced a policy of
containment—advocated by scholar George F. Kennan—of USSR expansion.
a. Implementation of containment introduced the Marshall Plan, named
after Secretary of State George Marshall.
b. The Marshall Plan provided financial aid to help build infrastructure in nations likely
to be takeover targets of the USSR.
B. A series of military actions between the two superpowers, and their allies, began in the 1950s and
continued through the 1960s.
1. The Korean War began when North Korean armies invaded South Korea.
a. The USSR supported the north; the U.S., the south.
b. The UN called for member nations to repel the USSR-sponsored advances
into the south.
c. The Chinese Army entered the military fray, and U.S. troops were driven back.
d. The U.S. military leader, General Douglas MacArthur, wanted to drive forces to China;
Truman wanted a limited war. Truman fired MacArthur, and the war dragged on in a
stalemate.
2. Eisenhower became president in 1952 and sought to end the war quickly.
a. He threatened to use nuclear weapons in the conflict.
b. The UN intervened, settling the war by drawing the line on the same parallel over
which the conflict began—after two years and a stalemate that cost 38,000 American
lives.
3. The most serious nuclear threat during the Cold War was the Cuban missle crisis.
a. In 1962, U.S. intelligence photos showed installation of missiles in Cuba.
b. Kennedy blockaded Cuba, telling Khrushchev he would blockade USSR
ships.
c. Khrushchev ordered the missiles withdrawn from Cuba.
C. U.S. involvement in Vietnam grew out of the containment policy.
1. Following the defeat of French forces by Chinese leader Ho Chi Minh, and failure to
intervene in 1954, the nation of Vietnam was divided into north and south portions.
a. North Vietnam was supported by communist nations.
b. South Vietnam was U.S. backed.
c. Kennedy sent troops to train the South Vietnamese armies in the early 1960s.
d. Congress supported American entry into the civil war in Vietnam after the Gulf of
Tonkin resolution.
e. Following Kennedy’s death, Johnson increased the number of U.S. troops in
Vietnam.
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D.
E.
F.
G.
H.
I.
III.
f. With battles continuing and no clear winners, North Vietnam’s troops attacked the
U.S. embassy in Saigon in 1968.
g. Johnson decided not to run for president again, and did not provide further troops
as requested by General Westmoreland.
In 1968, Nixon was elected president, largely on his promise to resolve the Vietnam
conflict.
1. On the advice of his secretary of state, Kissinger, Nixon entered into negotiations
toward finding a peaceful resolution to the conflict.
2. The process initiated a policy of force and diplomacy.
a. In 1972, the U.S. bombed Hanoi in North Vietnam.
b. Peace terms were later worked out, based on proposals by Kissinger.
c. Each nation would remain as it was.
d. American troops withdrew.
e. South Vietnam was overrun by North Vietnamese armies and the nation became one
under communist rule.
President Gerald Ford opted against further U.S. involvement in Vietnam and sent no troops.
America’s failure in Vietnam had far-reaching international and national consequences.
1. The U.S. military lost more than 47,000 soldiers.
2. In Cambodia, after Vietnam was reunited, more than two million people were
murdered.
3. More than half a million boat people fled Vietnam to other nations of the world.
4. The U.S. took in more than 250,000 Vietnamese refugees.
5. America became more isolationist in its foreign policy.
6. The USSR expanded its political and military presence throughout the world.
7. Following the American decline in military strength, President Carter sought to rejuvenate
the armed forces and power in 1979.
a. NATO advocated a new defense buildup.
b. Reagan took office in 1981, after the buildup had already begun.
c. Reagan’s military buildup pressure continued through 1985, as he sought negotiations
with USSR leaders.
d. Reagan advocated a military show of power equal to the USSR’s as a means of
aiding negotiations.
In 1985 Gorbachev, new premier of the USSR, announced reductions in the nation’s
military.
1. The U.S. and USSR reached an agreement, in treaties, to reduce nuclear buildups.
2. In 1988 Gorbachev announced that USSR troops would no longer be used to keep power in
Eastern European nations.
3. Eastern nations quickly threw off the suppressive communists, and became independent or,
in the case of East and West Germany, reunited.
By 1991, all fifteen republics of the USSR had declared their independence, and the USSR
ceased to exist.
1. There was a lengthy struggle for power between Gorbachev and Yeltsin for leadership.
2. Yeltsin became president of the new Russian Republic, winning election again in 1996.
3. Unrest continues in all of the fifteen republics, struggling to resolve economic,
political, and social changes that have suddenly taken place.
Vladimir Putin succeeded Yeltsin as the Russian president in 2000. Problems with the
economy, Chechnya, and democracy continue today in Russia.
Nuclear Threats
A. Widespread and massive nuclear weaponry made the Cold War more dangerous than any
other confrontation in human history.
B. The existence of such devastating capabilities may have been the reason for
nonconfrontation between the two superpowers—U.S. and USSR—as many other
conflicts took place throughout the world.
1. To maintain peace, the U.S. relied on a policy of deterrence.
a. Deterrence is based on the premise of a second-strike capability.
b. Second-strike capability means that the U.S. would be able to retaliate effectively
against a USSR first strike and inflict serious damage to the offensive nation.
c. Deterrence is a psychological defense.
2. By the early 1970s, there was a balance of nuclear power between the U.S. and the USSR.
a. Neither side could be confident of defeating the other because of the balance of
weapons.
b. World populations were held hostage to a “mutual assured destruction” (MAD)
policy.
C. A series of negotiations, prompted by Nixon and Kissinger, resulted in several nuclear arms
reductions treaties and agreements between 1972 and 1993.
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1. SALT I resulted in 1972 from Kissinger’s negotiations over nuclear arms reductions
between the U.S. and USSR.
a. Limits were placed on the numbers of antiballistic missiles (ABMs).
b. The U.S. and USSR missile numbers were frozen at the total number of offensive
missiles, and each side had to dismantle an equal number of older missiles.
2. SALT II was signed in 1979 after years of negotiations for renewal of the first SALT.
a. Limits were again established.
b. The U.S. Senate never signed the treaty, as Carter withdrew it when the USSR invaded
Afghanistan.
c. Both nations agreed to abide by SALT II, as if it had been signed by the Senate.
D. Reagan’s administration began a new series of negotiations designed around three principles
of arms control.
1. Reductions of nuclear capacity was critical to further discussion.
2. Equality between the two nations had to be reached in nuclear and weapon capabilities.
3. On-site verification of compliance to all negotiated agreements was to be a part of each
agreement.
E. A series of agreements and treaties were again initiated and completed between 1987 and 1993.
1. With the START I agreement of 1991, Bush and Gorbachev reduced the total number
of nuclear delivery systems (missiles).
2. START II of 1993 was completed after Gorbachev was replaced by Yeltsin. He and Bush
agreed to eliminate all multi-warheaded, land-based missiles (MIRVs) by 2003.
3. The Treaty of Moscow, together with the START treaties, will reduce the nuclear arsenals
of the U.S. and Russia by over 80 percent from Cold War levels.
F. Today, there is a real threat of nuclear terrorism as countries like Iran and North Korea are likely
to find access to nuclear weapons; the U.S. still pursues a BMD system.
IV. The War on Terrorism
A. Global terrorism has evolved over the years into highly sophisticated networks operating in
many countries.
1. Attacks date back thirty years, but the death and destruction has dramatically increased.
a. Prior to 9/11, most Americans thought of terrorism as a foreign issue.
b. Terrorist attacks on U.S. soil were rare.
c. The Oklahoma City bombing was an isolated event of domestic terrorism.
2. Al Qaeda is now engaged in global terrorism
a. Osama bin Laden leads this loose-knit network
b. Their political grievances include American support of Israel.
B. On the evening of September 11, President Bush outlined a broad “response to terrorism.”
1. The war on terrorism would be a long and sustained effort.
2. New restrictions on the lives of Americans would be in place.
3. Airport security measures would be instituted.
4. The Department of Homeland Secutiry was created.
a. Designed to coordinate federal, state, and local law enforcement agencies in dealing with
acts of terror.
C. The military phase of the war on terrorism began October 7, 2001, when U.S. Air Force and
Navy aircraft began attacks on known Al Qaeda bases in Afghanistan.
1. Operation “Enduring Freedom”included a coalition of troops.
a. United States
b. Britian
c. Canada
d. The Northern Alliance (local tribal groups)
2. Other nations allowed forces to base operations on their land.
a. Pakistan
b. Saudi Arabia
c. Uzbekistan
3. Kabul was occupied by anti-Taliban forces on November 13, 2001.
4. By April 2002, Al Qaeda and Taliban forces were either destroyed or
dispersed into scattered groups in the Afghan mountains.
5. Osama bin Laden, however, escaped capture until being
killed by U.S. special forces in 2011.
D. The war on terror requires the United States to reshape its military
planning to confront unconventional (or asymmetrical) wars-lightly
armed, irregular enemy forces engaging in tactics such as ambushes,
hidden explosives, suicide bombings, and hostage takings.
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V. The War in Iraq
A. Americans demand quick victory in war.
B. Following the capture of Baghdad by U.S. forces, the post-war insurgency apparently
surprised Secretary of Defense Donald Rumsfeld.
C. Public support for continued conflict in light of mounting casualties waned despite
assurances that an abrupt U.S. withdrawal would encourage terrorists around the world.
D. In the presidential campaign of 2008, Barack Obama pledged to end the war in Iraq
“responsibly.”
E. U.S. forces officially ceased combat missions in Iraq in August 2010
F. The American public remains unconvinced that military intervention in Iraq was worth the
heavy price paid: over 4,500 American service members killed and 35,000 wounded.
G. Violence continues in Iraq, the Islamic State has emerged as a force to be dealth with, and
the future of democracy in Iraq remains in doubt.
VI. The War in Afghanistan
A. The Taliban regime in Afghanistan provided al-Qaeda with safe haven and on September 11, 2001,
al-Qaeda executed the attacks on the World Trade Center and the Pentagon.
B. On October 7, 2001, U.S. Air Force and Navy aircraft began attacks on al-Qaeda bases in Afghanistan
C. U.S. Special Operations Forces aided the anti-Taliban fighters in that country, and Kabul, the capital,
fell to these forces on November 13, 2001.
D. The United States and NATO created an International Security Assistance Force (ISAF) in 2002 to
provide for a legitimate government in Afghanistan leading to the installation of Hamid Karzai as
leader of Afghanistan
E. The Karzai government exercises less than full control over Afghanistan’s various tribal chiefs (or
“warlords”), who exercise substantial independent power throughout the country.
F. Afghanistan became the Obama administration’s principal military effort
G. As Obama finishes his presidency he is struggling to meet his goal of having all American troops out
of Afghanistan by the end of his term in 2017.
H. The American people appear to be divided over the wisdom of continuing military operations in
Afghanistan
I. Majorities oppose the war itself and oppose increasing American troop levels
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