We the People Presentation by Eric Miller, Blinn College, Bryan, Texas. Chapter 15 Economic and Environmental Policy: Contributing to Prosperity

McGraw-Hill ©2006 by The McGraw-Hill Companies, Inc. All rights reserved. Preamble, U.S. Constitution We the people of the United States, in order to… insure domestic tranquility… 15-2

McGraw-Hill ©2006 by The McGraw-Hill Companies, Inc. All rights reserved. Government as Regulator of the Economy Economy Laissez-faire Doctrine Adam Smith Karl Marx Regulation 15-3

McGraw-Hill ©2006 by The McGraw-Hill Companies, Inc. All rights reserved. Government as Regulator of the Economy Efficiency Through Government Intervention Preventing Restraint of Trade Making Business Pay for Indirect Costs Externalities Overregulation Deregulation 15-4

McGraw-Hill ©2006 by The McGraw-Hill Companies, Inc. All rights reserved. Government as Regulator of the Economy Equity Through Government Intervention The Politics of Regulatory Policy The Reforms of the Progressive and New Deal Eras The Era of New Social Regulation 15-5

McGraw-Hill ©2006 by The McGraw-Hill Companies, Inc. All rights reserved. Government as Protector of the Environment Conservationism: The Older Wave Dual use policy Environmentalism: The Newer Wave Earth Day EPA Kyoto Agreement 15-6

McGraw-Hill ©2006 by The McGraw-Hill Companies, Inc. All rights reserved. Government as Promoter of Economic Interests Promoting Business Loans, tax breaks, and services Promoting Labor National Labor Relations Act Promoting Agriculture Crop subsidies 15-7

McGraw-Hill ©2006 by The McGraw-Hill Companies, Inc. All rights reserved. Fiscal Policy: Government as Manager of Economy, I Taxing and Spending Policy Deficit Spending Economic Depression Economic Recession Demand-Side Stimulation Budget Deficit National Debt Balanced Budget Budget Surplus 15-8

McGraw-Hill ©2006 by The McGraw-Hill Companies, Inc. All rights reserved. Fiscal Policy: Government as Manager of Economy, I Taxing and Spending Policy (continued) Supply-Side Stimulation Reagan Capital-Gains Tax Controlling Inflation 15-9

McGraw-Hill ©2006 by The McGraw-Hill Companies, Inc. All rights reserved. Fiscal Policy: Government as Manager of Economy, I The Process and Politics of Fiscal Policy The Budgetary Process OMB President and Congress Partisan Differences Republicans Democrats 15-10

McGraw-Hill ©2006 by The McGraw-Hill Companies, Inc. All rights reserved. Monetary Policy: Government as Manager of Economy, II The Fed Federal Reserve System Reserve Requirements Interest rates The Politics of the Fed 15-11

McGraw-Hill ©2006 by The McGraw-Hill Companies, Inc. All rights reserved. States in the Nation 15-12

McGraw-Hill ©2006 by The McGraw-Hill Companies, Inc. All rights reserved. States in the Nation 15-13