a strategy in which the federal government allows local areas some flexibility to meet their specific challenges and needs in implementing policy
Congressional Budget Office
the congressional office that scores the spending or revenue impact of all proposed legislation to assess its net effect on the budget
debt
the total amount the government owes across all years
deficit
the annual amount by which expenditures are greater than revenues
discretionary spending
government spending that Congress must pass legislation to authorize each year
distributive policy
a policy that collect payments or resources broadly but concentrates direct benefits on relatively few
entitlement
a program that guarantees benefits to members of a specific group or segment of the population
excise taxes
taxes applied to specific goods or services as a source of revenue
free-market economics
a school of thought that believes the forces of supply and demand, working without any government intervention, are the most effective way for markets to operate
Keynesian economics
an economic policy based on the idea that economic growth is closely tied to the ability of individuals to consume goods
laissez-faire
an economic policy that assumes the key to economic growth and development is for the government to allow private markets to operate efficiently without interference
libertarians
people who believe that government almost always operates less efficiently than the private sector and that its actions should be kept to a minimum
mandatory spending
government spending earmarked for entitlement programs guaranteeing support to those who meet certain qualifications
Medicaid
a health insurance program for low-income citizens
Medicare
an entitlement health insurance program for older people and retirees who no longer get health insurance through their work
policy advocates
people who actively work to propose or maintain public policy
policy analysts
people who identify all possible choices available to a decision maker and assess the potential impact of each
progressive tax
a tax that tends to increase the effective tax rate as the wealth or income of the tax payer increases
public policy
the broad strategy government uses to do its job; the relatively stable set of purposive governmental behaviors that address matters of concern to some part of society
recession
a temporary contraction of the economy in which there is no economic growth for two consecutive quarters
redistributive policy
a policy in which costs are born by a relatively small number of groups or individuals, but benefits are expected to be enjoyed by a different group in society
regressive tax
a tax applied at a lower overall rate as individuals’ income rises
regulatory policy
a policy that regulates companies and organizations in a way that protects the public
safety net
a way to provide for members of society experiencing economic hardship
Social Security
a social welfare policy for people who no longer receive an income from employment
supply-side economics
an economic policy that assumes economic growth is largely a function of a country’s productive capacity
top-down implementation
a strategy in which the federal government dictates the specifics of public policy and each state implements it the same exact way
