Chapter 17 Economic Policymaking

Is corporate lingo for moving operations and obs to another country.

-President George H.W. Bush bargained the North American Free Trade Agreement, President Clinton strong-armed his own party to get an agreement creating the World Trade Oraganization, and President Gerge W.Bush repeated in 2004 State of the Union address that his administration was "promoting free & fair trade to open up markets for American manufacturers & farmers."

An economic system in which individuals and corporations, not the government, own the principal means of production and seek profits.

An economic system in which the government is deeply involved in the economic decisions through its role as regulator, consumer, subsidizer, taxer, employer, and borrower.

Large business with vast holdings in many countries, many of which have annual budgets exceeding that of many foreign governments. Many of these companies are larger than most governments. Ex. Disney, Coca-Cola, & Microsoft.

-The federal agency created during the New Deal that regulates stock fraud. It regulates the stock market.

An economic theory holding that the supply of money is the key to a nations economic health. Monetarists believe that too much cash and credit in circulation produces inflation.

-Monetary Policy: Based on monetarism, monetary policy is the manipulation of the supply of money in private hands by which the government can control the economy.
-Fiscal Policy: The policy that describes the impact of the federal budget- taxes, spending, and borrowing, on the economy. Fiscal policy is almost entirely determined by Congress and the president, who are the budget makers.

The principle that government should not meddle in the economy. Ever since the New Deal, policymakers have been concerned with controlling the economy.

-The key measure of inflation that relates the rise in prices over time. *It is an imperfect index.

-As measured by the Bureau of Labor statistics, the proportion of the labor force actively seeking work but unable to find jobs.
-Would be higher if it counted discouraged workers : people who have become so frustrated that they stop looking for jobs.

-The rise in prices for consumer goods.

-People who think they and their family are doing well vote for the incumbent, and those who think they are not benefiting vote for someone new.

A political concept that sees voters casting their election ballots based on how they percieve their personal economic cirumstances.
Are older people and younger people proctected from age discrimination?
SC decided in the case General Dynamics Land Systems Inc. V Cline Case, ADEA protects workers over 40 from age discrimination but does not proctect younger people.

-"sociotropic" voting, where educated voters look at employment and unemployment rates as a whole rather than their own circumstances.