Download US Policy

US Policy
Domestic: internal issues – laws, government planning and actions
Economic: money issues
Foreign: dealing with other nations
The Policy Process
Opening: Immigration
• What method for enforcing immigration law do you believe
would be most effective: holding employers who employ
illegal immigrants or other ineligible workers accountable,
holding individuals accountable through criminalization,
requiring proof of citizenship or legal status for all services,
or some other method. Why did you make that choice?
Economic Terms
• Inflation: prices and wages rise
• Consumer Price Index (CPI) – measures change in prices over time
• Recession: economy in bad shape for 2 consecutive quarters
• Depression: severe recession
• Unemployment: Those actively looking for job but can’t find one
• Full employment: 5% unemployment
• Laissez-faire: government does not get involved with economy
• Instead of government – have free competition in markets = capitalism
• Business cycle: Growth and slowdown in economy
Government Involvement
• Keynesian Economic Theory (Democrats – percolate up: help needy)
• John Maynard Keynes – Great Depression
• Government should tax and spend to support the economy
• Ex: Government spending on infrastructure
• Supply-Side Economics (Republicans – trickle down: help rich)
• 1980s – Ronald Reagan - recession
• Reduce government regulation and cut taxes = businesses produce more
products and hire more people
• Oversupply of products will drive prices down
• Government will get more taxes from businesses and individuals
Economics and Politics
• President in office is blamed/credited with economy
• Federal Reserve System (The Fed): INDEPENDENT regulatory agency
the regulates the amount of money in circulation:
• Board of Governors – 7 people appointed by president
• Federal Open Market Committee – decides how monetary policy
should be carried out
• Controls money supply
• Lower interest rates = more borrowing and stimulates
businesses and buying
• Loose – low interest rates
• Tight – high interest rates (bring down inflation)
Globalization: Economics and the World
• Companies have outsourced – make products in other countries
• Issues: Wages of workers overseas, Environmental standards, Lost US jobs
• Balance of trade is often negative – US imports more than exports
• 2013: Imports: $2.7 trillion/Imports $2.3 trillion
• Free Trade: no tariffs or import quotas
• North American Free Trade Agreement (NAFTA) 1993 – Canada, US, Mexico
• Central American-Dominican Republic Free Trade Agreement (CAFTA-DR)2005
• World Trade Organization (WTO) 1997 – 159 member nations
• Settle trade disputes