Where the Money Goes – Fiscal Policy  1.) Entitlement Programs These payments are required by law and are given to people meeting particular eligibility requirements.  1.) Entitlement Programs – These payments are required by law and are given to people meeting particular eligibility requirements.  Ex: Social Security, Unemployment Insurance, and Medicare.  2.) National Defense  3.) National Debt – paying the interest on the debt.

The Budgetary Process  Budgetary Politics  Stakes and Strategies  All political actors have a stake in the budget.  All actors try and tie their budget needs to national or political needs.  The Players  Lots of players, with the President and Congress playing important roles.  Almost all committees are involved in the budget. Standing Agriculture, Nutrition, and Forestry Appropriations Armed Services Banking, Housing, and Urban Affairs Budget Commerce, Science, and Transportation Energy and Natural Resources Environment and Public Works Finance Foreign Relations Health, Education, Labor, and Pensions Homeland Security and Governmental Affairs Judiciary Rules and Administration Small Business and Entrepreneurship Veterans' Affairs Special, Select, and Other Indian Affairs Select Committee on Ethics Select Committee on Intelligence Special Committee on Aging Joint Joint Committee on Printing Joint Committee on Taxation Joint Committee on the Library Joint Economic Committee Agriculture, Nutrition, and Forestry Appropriations Armed Services Banking, Housing, and Urban Affairs Budget Commerce, Science, and Transportation Energy and Natural Resources Environment and Public Works Finance Foreign Relations Health, Education, Labor, and Pensions Homeland Security and Governmental Affairs Judiciary Rules and Administration Small Business and Entrepreneurship Veterans' Affairs Indian Affairs Select Committee on Ethics Select Committee on Intelligence Special Committee on Aging Joint Committee on Printing Joint Committee on Taxation Joint Committee on the Library Joint Economic Committee

The Budgetary Process  The President’s Budget  Presidents did not originally play a role in the budget.  Now budget requests are directed through the OMB and President before going to Congress.  The budget process is time consuming- starting nearly a year in advance.  Some negotiation between OMB, the president and the agencies about their requests. SHAUN DONOVAN – DIRECTOR OF THE OMB DIRECTOR THE OFFICE OF MANAGEMENT AND BUDGET (OMB) – PREPARES THE BUDGET THAT THE PRESIDENT PROPOSES TO CONGRESS.

Date: April 6, 2016 Topic: Monetary Policy. Aim: How does monetary policy help shape the US economy? Do Now: Handout.

Monetary Policy  Monetary policy is the governments control of the money supply.  The Federal Reserve dictates monetary policy.  Monetary Policy – management of the economy through the supply of money and interest rates.  Federal Reserve System is controlled by the Federal Reserve Board. Reserve BoardReserve Board  Federal Reserve Board is designed to operate with a great deal of independence from government control. Federal Reserve Board Federal Reserve Board  The FED adjusts interest rates to encourage or discourage borrowing. JANET YELLEN – CHAIRMAN OF THE FEDERAL RESERVERESERVE

Federal Reserve Board  Seven members who are appointed by the President for 14 year, non-renewable terms.  The President may not remove them from office except for cause.  The chair is elected by the board for four years and may be reelected.  The Board heads the Federal Reserve System – 12 regional banks which supervise 5,000 member banks across the country. country.

Done Now.

 Definition of 'Gross Domestic Product - GDP'  The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory. GDP = C + G + I + NX where: "C" is equal to all private consumption, or consumer spending, in a nation's economy "G" is the sum of government spending "I" is the sum of all the country's businesses spending on capital "NX" is the nation's total net exports, calculated as total exports minus total imports. (NX = Exports - Imports)

 Unanimous Consent Agreements (Senate)  Unanimous Consent Agreements (Senate) – on a particular bill “rules” are set aside for what amendments (additions to a bill – specific to the bill, not pork/earmarks – benefits to constituents) will be added to a bill, time for debate, and when the bill will come up for a vote.