Domestic Policies Odds and Ends

▪ Establishes interest rates for member banks to borrow ▪ Sets percentage of “cash on hand” for member banks ▪ Attempts to regulate the supply of currency in the economy ▪ Too much is bad, too little is bad ▪ WHY? The government attempts to influence the economy to maintain steady growth.

▪ Came as a result of the banking crisis of 2007 ▪ Need for regulations on loans; banks were giving loans too leniently ▪ Dodd-Frank Bill was designed to prevent sketchy business practices ▪ Banks received “bail-outs” to stay afloat.

Affordable Care Act

Why did we need reform? ▪ 50.7 Million of uninsured Americans (September, 2010) ▪ Expensive Prescriptions ▪ Increasing cost of medical care – for businesses and individuals… ▪ Questionable practices of insurance providers ▪ Increasing costs of Medicare and Medicaid

Basic Provisions: ▪ Health insurance companies can't discriminate because of a pre-existing condition – or drop you when you get sick… ▪ No lifetime caps for insurance payments… ▪ Dependents can remain on parents' insurance until age 26… ▪ If one doesn’t buy insurance, pay $695 to the government… ▪ Businesses required to offer insurance, or pay $2,000 per worker who receive subsidies… ▪ Expansion of Medicaid and Medicare services… ▪ Encouragement of preventative care and research…

▪ This is a social insurance program ▪ Social Security is not a federal “handout”, people put in to the system and then the expectation is to get that money back – like a retirement program. ▪ Social Security was NOT designed to be the sole retirement program for people, just a supplement. ▪ In case of death, the money is distributed to the “survivors”. ▪ Money that is collected as Social Security is not used for other programs - but many people believe the system is in trouble!

1.The aging population 2.A greater percentage of Americans have met the requirements to be entitled for benefits 3.Inflation compounds the problem

▪ This is also a social insurance tax ▪ It is designed to assist with medical care with the elderly ▪ Medicare helps pay for prescription medications as well as hospitalization and doctor visits. ▪ Like Social Security, Medicare is facing similar challenges as people live longer and the cost of health care continues to rise!

▪ This program is designed to give cash payments to those in society who need a “hand out” to survive. ▪ The Federal Government gives grants to the individual states to finance welfare programs, but the state establishes the stipulations for receiving these funds. ▪ Most states, like Virginia, limit the amount of time a person may draw welfare and place other requirements; such as education, seeking employment, and potentially other behaviors.

▪ This system is designed to help the “less fortunate” in our society pay for medical needs. ▪ Like welfare, it is financed from the general tax fund. ▪ The supervision and administration of Medicaid is a concurrent activity, primarily paid for by the national government but programs run at the state level. ▪ Unlike Medicare, many consider Medicaid to be a Federal “handout”

▪ This controversial program was initially part of Lyndon Johnson’s vision of a “Great Society”. ▪ The goal was to combat malnutrition in the United States. ▪ The “stamps” can be used at stores to purchase food goods. ▪ The many abuses in the system (from stamps being sent to the deceased to the sale of the stamps for cash) has made this program much more controversial in recent years.

▪ The government protects workers’ rights to unionize ▪ Minimum wage, safety standards, hours, child labor laws ▪ WHY? Workers historically need the assistance against the economic powers of business

▪ Congress can establish environmental regulations to protect us from pollution, over-development, and to manage the nation’s natural resources. ▪ The Environmental Protection Agency – an Executive Agency – follows up to enforce the regulations. ▪ While many regulations are geared towards businesses, they impact all of our lives.

▪ Tax breaks and subsidies for compliance ▪ Tax breaks and subsidies to encourage development of alternative energy ▪ Establishing environmental regulations on burning fossil fuels ▪ WHY? Break dependence on foreign oil, protect environment and make technological advancement.