1. AP Government Policy Unit
Social Welfare Policy
Domestic Policy
Foreign Policy

2. Social Welfare Policy is the intent of the government to improve the quality of life for its citizens. There are 4 different types of public policy theories:
1. Elite Theory (unequal distribution is normal)
2. Bureaucratic Theory (gov’t so big bureaucrats
are the dominant power)
3. Interest Group Theory (gov’t is equilibrium
between all competing groups at all levels)
4. Pluralist Theory (no single elite group)

3. 1. Problem recognition and definition 2. Agenda Setting
Public Policy is determined in stages:
1. Problem recognition and definition
2. Agenda Setting
3. Policy Formation
4. Policy Adoption
5. Budgeting
6. Policy Implementation
7. Policy Evaluation

4. The stages of public policy

5. pluralist elite bureaucratic interest group democratic
______ theory assumes that no single group could ever gain monopoly control over any substantial area of policy.
pluralist
elite
bureaucratic
interest group
democratic

6. pluralist elite bureaucratic interest group democratic
______ theory assumes that no single group could ever gain monopoly control over any substantial area of policy.
pluralist
elite
bureaucratic
interest group
democratic 6

7. SOCIAL WELFARE POLICY
Panic of 1893 makes America 1st start to think gov”t has responsibility to help those in need.
Depression of 1930s greatly expanded upon this belief and led to the formation of the permanent welfare state in America. It’s highlighted by the Social Security Act of 1935.

8. SOCIAL SECURITY HAS THREE PARTS:
1. Old Age Protection
2. Aid for the blind, needy, injured, families w/kids
3. Unemployment insurance/compensation
Old Age Protection is a “pay as you go system” meaning you are paying now for others who are receiving it and that in the future others will pay for you when you are receiving it. (“good luck”)

9. Old Age Protection (con’t):
In 1940 maximum pension was $85 per month
In 2012 maximum pension was $2,513 per month
In 2013 a social security tax is imposed upon the first $113k of an employees wages. The employer and the employee are normally each required to contribute 6.2% of the tax amount due.
If self-employed you need to pay the entire 12.4%
yourself.

10. Aid for Blind, Needy, Families with dependent children and disabled (SSI)
This is supplemental money provided by the federal government as a “safety net” to prevent disaster
In 2012 poverty line in America for a family of 4 was established at $22,350 up to $41, 348
Unemployment Insurance was initially set up by the federal government but it was “assumed” by the states. Employers pay 3% of a worker’s salary into an insurance fund. The amount received by each worker varies by state and there is a cap.

11. EXPANSION OF GOVERNMENT’S ROLE IN SOCIETY
1. Education (vouchers and charter schools)
Supreme Ct. has ruled that issue of inequality of spending on education is a state matter since education is NOT a fundamental right
2. Health Insurance
Medicare (older citizens)
Medicaid (poorer citizens)
3. Food Programs (ex: food stamps aka “snap”)
4. Earned Income Credit (encourage work
even if earning low wages)

12. Energy policy Environmental policy
By 1970s, U.S. dependent on foreign oil
Oil embargo crisis (OPEC)
Government set conservation and efficiency standards; creates DOE
Environmental policy
National Environmental Policy Act of 1970
Clean Air Act of 1970
Clean Water Act of 1970
Safe Drinking Water Act of 1974

14. Where do U.S. oil imports come from?

15. The Kyoto Protocol, which committed countries to reducing greenhouse gas emissions, was ratified by the U.S. in ________.
It was never ratified.
1997
1998
2000
2008

16. The Kyoto Protocol, which committed countries to reducing greenhouse gas emissions, was ratified by the U.S. in ________.
It was never ratified.
1997
1998
2000
2008 16

17. Today, most of the electricity in the United States is generated by
wind farms.
hydroelectric dams.
nuclear power plants.
natural gas.
coal burning plants.

18. Today, most of the electricity in the United States is generated by
wind farms.
hydroelectric dams.
nuclear power plants.
natural gas.
coal burning plants. 18

19. NCLB intends to promote all of the following EXCEPT
privatization of education
school choice
success educational methods
flexible use of national funding
results-oriented accountability

20. NCLB intends to promote all of the following EXCEPT
privatization of education
school choice
success educational methods
flexible use of national funding
results-oriented accountability 20

21. A National insurance was first seriously considered in ________.
the 1930s
the Reagan administration
the 1960s
1912 under President Wilson
2008

22. A National insurance was first seriously considered in ________.
the 1930s
the Reagan administration
the 1960s
1912 under President Wilson
2008 22

23. MEANS TEST = No aid given unless the recipient qualifies based on income. NON-MEANS TEST = A program which gives the aid regardless of the income of the recipient. ENTITLEMENT PROGRAM= If you meet the eligibility criteria you are to receive the benefit and spending on the program is mandatory

24. RISING COST OF ENTITLEMENT PROGRAMS
Amounts Spent in Billions of Dollars: (FEDERAL)
(est.)
S.S
Defense
Means-Test
(entitlements)

25. WHAT SHOULD GOVERNMENTS ROLE IN THE ECONOMY BE?
Business Cycles
Laissez-Faire
Adam Smith and the Invisible Hand Theory of the Marketplace
John Maynard Keynes and the Theory of Deficit Spending
Ronald Reagan and the Theory of Deregulation

26. Question: Keynesian economic contends that:
the market works best when left to the invisible hand
government spending is necessary to reduce the deficit
governments work best when they work the least
government intervention is always an obstacle to efficiently functioning economies.
government intervention is often necessary to resolve the inefficiencies of the private sector. 26

27. Question: Keynesian economic contends that:
the market works best when left to the invisible hand
government spending is necessary to reduce the deficit
governments work best when they work the least
government intervention is always an obstacle to efficiently functioning economies.
government intervention is often necessary to resolve the inefficiencies of the private sector. 27

28. the Great Depression and the New Deal the 1960s the 1980s
During which era did the U.S. government first adopt interventionist policies?
the 19th century
the Progressive era
the Great Depression and the New Deal
the 1960s
the 1980s 28

29. the Great Depression and the New Deal the 1960s the 1980s
During which era did the U.S. government first adopt interventionist policies?
the 19th century
the Progressive era
the Great Depression and the New Deal
the 1960s
the 1980s 29

30. FDR CHANGES EVERYTHING
The Depression of the 1930s required drastic action and the following was done:
1. Glass-Steagall Act (FDIC)
2. SEC
3. AAA
4. Wagner Act (collective bargaining and right to organize)
THE NEW DEAL MEANS THAT GOVERNMENT WOULD NOW BE PRIMARY SOURCE OF ECONOMIC SOLUTIONS INSTEAD OF THE MARKETPLACE

31. Economic Regulation is government regulation of business practices
Social Regulation is government regulation of safety of products and conditions of production
Four Reasons for surge of these regulations:
s/70s increase in activism
2. More public awareness of dangers and safety
3. Congress wants visibility and prominence
4. Presidents support them
BUT IN THE 1980S A REVERSE TREND WILL TAKE PLACE (Deregulation)

32. Income Security Programs Today
Many income security programs are entitlement programs
Non-means-tested programs
Social security
Unemployment insurance
Means-tested programs
Supplemental security income (SSI)
TANF and SNAP
Earned Income tax credit program

33. How many Americans benefit from income security programs?

34. Which of the following is a non-means-tested program?
TANF
SSI
SNAP
unemployment insurance
earned income tax credit program 34

35. Which of the following is a non-means-tested program?
TANF
SSI
SNAP
unemployment insurance
earned income tax credit program 35

36. Fiscal Policy in a Global Context
Globalization and income
minimum wage v. wages abroad
Increasing interdependence
2008 economic crisis spread swiftly abroad

37. Growth (economic stability) Inflation Recession Depression
THE BUSINESS CYCLES
Growth (economic stability)
Inflation
Recession
Depression
THE TOOLS USED TO COMBAT OR ASSIST THESE ARE:
MONETARY POLICY (Federal Reserve Bank)
FISCAL POLICY (Executive Branch)

38. Monetary and Fiscal Policy
Gross Domestic Production (GDP) is the total market value of all goods and services produced in one year in a country
(a negative GDP is an indication of no economic growth)
Revenue is how much the government has taken in
Expenditures is how much the government has spent

39. How does the federal government raise and spend money?

40. MONETARY POLICY The Federal Reserve System
12 Regional Banks (private but leaders appointed by government and stock owned by large commercial banks) ---These are the bankers bank
Establish monetary policy by:
Setting Reserve Requirements for Banks;
Controlling the Discount and FOMC rates for lending;
Open Market Operations (buying and selling of government securities-bonds)
Controlling supply of money (paper) existing

41. Question: The discount rate is?
the rate at which discounts are given to Federal Reserve member banks when purchasing goods and services.
the interest rate at which the Federal Reserve lends money to member banks.
the discount given to citizens on welfare when they purchase goods and services.
the normal discount given to U.S. banks over foreign banks when borrowing money from the Federal Reserve
the reserve requirements for Federal Reserve member banks. 41

42. Question: The discount rate is
the rate at which discounts are given to Federal Reserve member banks when purchasing goods and services.
the interest rate at which the Federal Reserve lends money to member banks.
the discount given to citizens on welfare when they purchase goods and services.
the normal discount given to U.S. banks over foreign banks when borrowing money from the Federal Reserve
the reserve requirements for Federal Reserve member banks. 42

43. Seeking to Repair the Economy in 2009

44. Where did the economic stimulus funds go?

45. Question: The purpose of TARP was to:
stimulate the economy.
reduce the federal debt.
help families unable to make their mortgage payments.
buy “clunker” cars to trade for newer, more fuel efficient cars.
set limits on CEO pay 45

46. Question: The purpose of TARP was to:
stimulate the economy.
reduce the federal debt.
help families unable to make their mortgage payments.
buy “clunker” cars to trade for newer, more fuel efficient cars.
set limits on CEO pay 46

47. The Key Players in Fiscal Policy
OMB= Office of Management and Budget works for the executive branch
CBO= Congressional Budget Office works for legislative branch
Entitlement Spending has grown at a much faster pace than discretionary spending
Balanced Budget- Probably will no longer see it in your lifetime

48. Who holds U.S. debt as of 2010?

49. ENVIRONMENTAL REGULATION
Used to be controlled by states but now controlled by Federal Government
Change began with creation of EPA in 1970 and the power of this agency has grown so large that it now is directly involved in almost all matters of potential governmental spending for construction or production

50. HISTORY Isolationism Unilateralism (act w/o talking to others)
Washington’s Farewell Address
Isolationism
Unilateralism (act w/o talking to others)
Moralism (Democracy and belief in “right” )
Pragmatism (taking advantage for nationalistic gain)

51. The Doctrines Monroe Roosevelt Corollary Truman (containment)
Nixon ($ not troops and deterrence theory)
Carter (“strategic and vital interests will be
militarily protected”)
Reagan (military assistance to fight pro-Soviet
governments)
Bush (preemptive strikes against potentially
dangerous nations)

52. Key Terms Protective Tariffs and Most Favored Nation Status (MFN)
Smoot-Hawley (1930)
Tariff of Abominations
Embargo Act of 1807
NAFTA
Globalization and Free Trade
WTO

53. Spanish-American War and the rise of Imperialism (1898)
Bretton-Woods Agreement (1945)
IMF
World Bank
US Dollar replaces gold as the world’s currency
Internationalism/Multilateralism
GATT (general agreement on trade & tariffs)

54. The United States’ growing interest in Asian affairs was the result of:
the attack on Pearl Harbor in 1941.
the Spanish American War of 1898.
the Monroe Doctrine.
the League of Nations.
the Paris Peace Conference.

55. The United States’ growing interest in Asian affairs was the result of:
the attack on Pearl Harbor in 1941.
the Spanish American War of 1898.
the Monroe Doctrine.
the League of Nations.
the Paris Peace Conference. 55

56. NATO and the end to isolationism forever
Deterrence Theory (Nixon)
First Strike Capability and Nuclear Weapons
Cuban Missile Crisis (1962)
SALT TREATIES (Nixon)
ANTI-BALLISTIC TREATY (Nixon)
STAR WARS (Reagan)
WAR POWERS ACT (“Consequence of Vietnam”)

57. Iron Curtain (falls in 1989)
USSR (falls in 1991)
CIA and NSC (created in 1947 in response to the growing Soviet threat)
EXECUTIVE AGREEMENTS (no Senate needed)
IKE and the Military-Industrial Complex
UNITED NATIONS (and the use of “peace keepers”)

58. Enlargement was a foreign policy objective of ___________.
Clinton
Reagan
Carter
Nixon
Bush II

59. Enlargement was a foreign policy objective of ___________.
Clinton
Reagan
Carter
Nixon
Bush II 59

60. The Department of State The Supreme Court The intelligence community
All of the following officials or bodies tend to play a decisive role in foreign policy EXCEPT
Congress
The president
The Department of State
The Supreme Court
The intelligence community

61. The Department of State The Supreme Court The intelligence community
All of the following officials or bodies tend to play a decisive role in foreign policy EXCEPT
Congress
The president
The Department of State
The Supreme Court
The intelligence community 61

62. Defensive weapons systems Covert operations Border blockades
Which of the following is a foreign policy strategy to deal with nuclear proliferation?
The open door policy
Free trade agreements
Defensive weapons systems
Covert operations
Border blockades

63. Defensive weapons systems Covert operations Border blockades
Which of the following is a foreign policy strategy to deal with nuclear proliferation?
The open door policy
Free trade agreements
Defensive weapons systems
Covert operations
Border blockades 63

64. How defense spending changed over time

65. Who are the United States’ major trading partners?

66. The U.S. became the world’s primary superpower after ___________.
WWII
Vietnam
WWI
9/11
the end of the Cold War

67. The U.S. became the world’s primary superpower after ___________.
WWII
Vietnam
WWI
9/11
the end of the Cold War 67