| A | B |
|---|
| block grants | grants of money from the federal government that state and local governments may spend on any programs serving the general purpose of the grant |
| categorical grants-in-aid | grants of money from the federal government to pay for specific state and local government activities under strict federal guidelines |
| direct democracy | mechanisms such as the initiative, referendum, and recall-powers that enable voters to use the ballot box to set government policy |
| dual federalism | an interpretation of federalism that held that national governent was supreme within those areas specifically assigned to it in the Constitution, and the states were supreme in all other areas of public policy |
| executive amendment | a procedure allowing governors to reject a bill by returning it to the legislature with changes that would make it acceptable; the legislature must agree to the changes for the bill to become law |
| fiscal federalism | the principle that the federal government should pay a major role in financing some state and local government activities |
| general revenue sharing | a program giving federal money to state and local governments with no restrictions on how it will be spent |
| initiative | a proposed law or amendment placed on the ballot by citizens, usually through a petition |
| lame duck | an officeholder whose political power is weakened because his or her term is coming to an end |
| line-item veto | the ability of an executive to delete or veto some provisions of a bill, while allowing the rest of the bill to become law |
| mandates | laws Congress passes that require state and local governments to undertake specified actions |
| picket-fence federalism | the tendency of federal, state, and local agencies concerned with the same issues to coordinate their efforts with each other and to be insulated from other government agencies that deal with different issues |
| privatization | turning government programs over to private companies to run, or selling government assets to the private sector |
| rainy day fund | surplus revenue a state government holds in reserve for budget emergencies and shortfalls |
| referendum | an election held allowing voters to accept or reject a proposed law or amendment passed bya legislative body |
| balanced budget | a federal budget in which spending and revenues are equal |
| Budget and Accounting Act of 1921 | an act of Congress that created the Bureau of the Budget and allowed the president to review and coordinate the spending proposals of federal agencies and departments |
| budget deficit | the amount by which government spending exceeds government revenues in a single year |
| budget surplus | the amount by which government revenues exceed government spending in a single year |
| Congresssional Budget and Impoundment Control Act of 1974 | an act of Congress that created the new budget and process and the Congressional Budget Office and curtailed the president's power to impound funds |
| continuing resolutions | temporary laws Congress passes to keep the government running when Congress misses the deadline for passing the budget |
| corporate welfare | government subsidies of tax breaks of questionable value to private corporations |
| cost-of-living adjustment (COLA) | an increase in Social Security or other benefits designed to keep pace with inflation |
| discretionary spending | federal spending on programs that can be controlled through the regular budget process |
| entitlement programs | programs, created by legislation, that require the government to pay a benefit directly to any individual who meets the eligibility requirements the law establishes |
| flat tax | any income tax system in which taxable income is taxed at the same percentage rate, regardless of the taxpayer's income |
| national debt | the total amount of money the federal government owes to pay for accumulated deficits |
| non-discretionary spending | federal spending on programs such as Social Security that cannot be controlled through the regular budget process |
| office of management and budget (OMB) | the agency in charge of assisting the president in reviewing and coordinating budget requests to Congress from federal agencies and departments; formerly the bureau of the budget |
| pork barrel | legislation that appropriates government money for local projects of quesitonable value that may ingratiate a legislator with his or her constituents |
| progressive tax | a tax system in which those with high incomes pay a higher percentage of their income taxes that those with low incomes |
| regressive tax | a tax system in which those with high incomes pay a lower percentage of their incomes in taxes that those with low incomes |
| revenue neutral | the quality of any tax reform plan that will neither increase nor decrease government revenues |
| Social Security Act of 1935 | the act of Congress that created the Social Security tax (Federal Insurance Contribuion Act--FICA) and Social Security programs |
| Aid to Families with Dependent Children (AFDC) | a public-assistance program that provides government aid to low-income families with children |
| economic regulation | laws and governmental rules that affect the competitve practices of private business |
| environmental impact statement | a document federal agencies must issue that analyzes the environmental impact of any significant actions they plan to take |
| federal reserve system | an independent regulatory commission that Congress created in 1913 to oversee the nation's money supply |
| fiscal policy | using the federal government's control over taxes and spending to influence the condition of the national economy |
| food stamp program | a public assistance program established in 1964 that provides stamps (or coupons) to low-income people to buy food |
| Gross Domest Product (GDP) | a measure of a country's total economic output in any given year |
| industrial policy | the policy of seeking to strengthen selected industries by targeting them for governmental aid rather than letting the forces of the free market determine their fates |
| Keynesian economics | an economic theory, based on the work of British economist John Maynard Keynes, that contends that the national government can manage the economy by running surpluses and budget deficits |
| laissez faire | an economic theory, dominant at the start of the twentieth century, that argued that the federal government's only role in the economy was to ensure a stable supply of money |
| lucas critique | an economic theory that contends that if people act rationally, then their reactions to changes in government policy will often negate the intent of those changes |
| means test | a requirement that people must fall below certain income and wealth requriements to qualify for government benefits |
| medicaid | a public assistance program that provides publicly subsidized health care to low-income Americans |
| medicare | a social insurance program that provides basic hospital insurance and supplementary insurance for doctor's bills and other health care expenses for people over the age of 65 |
| monetary theory | an economic theory that contends that a nation's money supply, or the amount of money in circulation, is the primary if not sole determinant of the health of the national economy |
| public assistance | government programs, such as medicaid and food stamps, that are funded out of general tax revenues and that are designed to provide benefits only to low-income people |
| regulatory policy | laws and government rules targeting private business for the purpose of protecting consumers and other business from what the government deems unfair business practices; protecting workers from unsafe or unhealthy working conditions; protecting consumers from unsafe products; and protecting a number of groups from discrimination |
| social insurance | government programs such as Social Security and Medicare that require those who will receive benefits to make contributions (otherwise known as taxes) and that distribute those benefits without regard to the recipient's level of income |
| social regulation | laws and governmental rules designed to protect Americans from dangers or unfair practices associated with how private businesses produce their products as well as from dangers associated with the products themselves |
| social welfare policy | government programs that provide goods and services to citizens for the purpose of improving the quality of their lives |
| supply-side economics | an economic theory that argues that if the government cuts taxes, reduces spending, and eliminates regulations, resources will be freed up to fuel the economy to produce even more goods and services |
| Cold War | a phrase used to describe the high level of tension and distrust that characterized relations between the Soviet Union and the United States from the late 1940's until the early 1990's |
| containment | a bedrock principle of U.S. foreign policy from the 1940's to the 1980's that emphasized the need to prevent communist countries, especially the Soviet Union, from expanding the territory they controlled |
| detente | a policy the Nixon administration followed to develop more cordial relations with the Soviet Union |
| enlargement | the policy of President Bill Clinton proposed as a substitute for containment; it calls on the U.S. to promote the emergence of market democracies; that is, countries that combine a free market economic system with a democratic policy system |
| executive agreements | international agreements that, unlike treaties, do not require the approval of two-thirds of the Senate to become binding in the U.S. |
| free trade | an economic policy that holds that lowering trade barriers will benefit the economies of all the countries involved |
| General Agreement on Tariffs and Trade (GATT) | an international organization that existed between 1947 and 1995; GATT was used by its member countries to set many of the rules governing world trade; in 1995, it gave way to the World Trade Organization |
| globalism | the idea that the U.S. should be prepared to use military force around the globe to defend its political and economic interests |
| intermestic issues | issues such as trade, the environment, and drug trafficking that affect both domestic and foreign interests |
| isolationism | a foreign policy built on the principle of avoiding formal military and political alliances with other countries |
| Marshall Plan | a multibillion-dollar U.S. aid programing the late 1940's and early 1950's that helped Western European countries rebuild their economies in the wake of World War II |
| Monroe Doctrin | a basic principle of U.S. foreign policy that dates back to a warning President James Monroe issued in 1823 that the United States would resist further European efforts to intervene in the affairs of the Western Hemisphere |
| multilateralism | an approach in which three or more countries cooperate for the purpose of solving some common problem |
| national interest | the idea that the U.S. has certain interests in international relations that most Americans agree on |
| neo-isolationalism | the idea that the U.S. should reduce its role in world affairs and return to a foreign policy similar to the one it pursued before World War II |
| North Atlantic Treaty Organization (NATO) | a military alliance founded in 1949 for the purpose of defending Western Europe from attack; members of NATO include the United States, Canada, and fourteen European countries |
| sovereignty | the power of self-rule |
| third world | a term loosely defined to mean the developing countries in Asia, Africa, and Latin America |
| Truman Doctrine | a policy, announced by President Truman in 1947, that the U.S. would oppose communist attempts to overthrow or conquer non-communist countries |
| two presidencies | the argument that presidents have much greater influence over the content of foreign policy than the content of domestic policy |
| unilateralism | the tendency of the U.S. to act alone in foreign affairs without consulting other countries |
| World Trade Organization (WTO) | the international trade agency that began operation in 1995 as the successor to the General Agreement on Tariffs and Trade |
