Econ policy

apgov/Ideology_and_Economic_Policy.md

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+# Ideology & Economic Policy
+
+## Political Ideology and the Marketplace
+using government policy to further economic development by using taxes, spending programs etc.
+## Keynessian Economics
+Deal with economic policy related to gov spending and taxation. 
+Beleif that economy wont operate on 100% cap without government involvement
+Gov should step in and do demand if it is falling too low
+## Fiscal Policy
+economic policy related to gov spending ant taxes
+## Multiplier effect
+mechanism where increasing spending causes economic growth greater than the amount of spending
+## Supply-Side Economics
+(fiscal conservatives) belif that the gov should leave as much of money supply to the people and let laws of economics deal with the market. laissez-faire market theory
+## Taxing
+article 1 of constitution gives congress taxation powers
+## Sixteenth Amendment
+allowed congress to tax people's incomes 
+## Internal Revenue Service (IRS)
+goverment agency that manegess collection process of taxes 
+## Progressive Tax
+as one gets better so does one's taxes 
+## Flat Tax
+all citizens should be taxed the same amount
+## Spending
+government spends its budget on different things depending on the party. Both parties need to vote on the acutal budget. 
+## Federal Suprlus and Deficit Chart
+often we have a lot less surplus government spending. especially since the 2008 financial crisis.
+## Monetary Policy 
+how the goverment manages supply and demend of its currency and the value of the dollar. 
+## Inflation
+too much dollars in circulation and then ricing prices and devaluation of the dollar occurs 
+## Federal Reserve Board
+gov agency that manages the monetary policy by buying and selling securities and bonds, as well as the amount of money reqiired at reserves as well as setting interest rates.
+## Discount Rate
+the interest rate at which the government loans actual dollars to comerical banks. tends to set the interest rates for consumers as well
+## Reserve Requirement
+every bank needs to keep a certain amount of money in their reserves in order to prevent a great depression. effects how much the bank can loan out.
+## Bonds
+government IOSs - promise that the US will pay back later with interest.
+
+-- note to self: i need to buy a bond
+## Federal Reserve and the Economy
+???
+
+## Think as a Political Scientist
+
+Study the graphics and answer the questions that follow
+
+1. What inferences can be made from the data?
+
+that as the economy has declined the discount rate has lowered in order to help boost the economy 
+2. What additional information about the government's economic activity over this period might make this graphic more valuable in understanding
+
+showing different historical events relating to the us history, vietnam war, cold war, economic bubbles etc
+
+## Differing Views on Monetary Policy Globalization 
+people view money very differently as it is a political discussion. 
+
+some thing easy-money is good while others look back at history and state that it is a contributing factor to bad events
+## Trade Balance
+nation that exports more than it imports
+## NAFTA (North American Free Trade Agreement)
+1994 agreement between US, Canada, Mexico. Removed import taxes between in order to make a more competative continent compared to the EU and Europe
+## Essential Question: What are the differing political ideologies in the government's role in regulating the marketplace, and what impact do those ideologies have?
+
+1. Conservative Ideology (Regulating the Marketplace, Fiscal Poilicy, Monetary Policy, Trade)
+Do not like to regulate the market, government should make the economy handle eveythign itself and that the banks should manage money so make interest rates low
+2. Liberal Ideology (Regulating the Marketplace, Fiscal Poilicy, Monetary Policy, Trade)
+regulate and incentivise programs in order to further social progress, taxes should be different for people so that money is fairly used