PPO - Public Policy Module Overview

Public Policy

Public Policy consists of political decisions for implementing programs to achieve societal goals.

Introduction

Because power is widely distributed and checks prevent one branch from usurping powers from the others, institutional actors are in the position where they must both compete and cooperate in order to govern.

Key Terms

  • Laissez-faire: Economic system in which transactions between private parties are free from government interference.
  • Monetarism: The practice of controlling the money supply in order to stabilize the economy.
  • GDP: The value of all of the finished goods and services produced within a country's borders in a specific time period.
  • WTO: The organization that deals with all of the rules and trades that go on between different countries.
  • NAFTA: Regional trade agreement that was signed by Canada, Mexico, and the U.S.. 
  • Federal Reserve System: The central banking system of the United States.
  • Mandatory Spending: The type of spending where Congress has no means of control because it has already been passed.
  • Discretionary Spending: Spending by the government that is implemented through a bill that is passed.
  • Budget Deficit: The status of the economy in which we spend more than we take in revenue.
  • Antitrust Policy: Legislation preventing or controlling trusts or other monopolies, with the intention of promoting competition.
  • Social Security: Government system in which they provide monetary assistance to people who have no income or an inadequate income.
  • Medicare: Federal health insurance program for people who are 65 and older, and certain young people with disabilities.
  • Entitlement: Right to benefits specified especially by law or contract.
  • Tax Expenditures: Revenue losses attributable to tax provisions that often result from the use of the tax system to promote social goals.
  • Coalition: A temporary group of entities that agree to work together in order to achieve a common goal.
  • Tax revenues: Income that is collected by the government through taxation.
  • Ideology: A system of economic or political ideals or beliefs. 
  • Gridlock: Inability of the government to act since differing political parties control different parts of the government.
  • Keynesian economics: Advocates an increase in government expenditures and lower taxes to stimulate the economy.
  • Supply Side economics: Advocates a decrease in taxes and regulation to stimulate economic growth while providing an increase in the supply of goods and services at lower prices.
  • Monetary policy: The Federal Reserve carries out this policy in order to positively impact the economy through the money supply and interest rates.
  • Fiscal Policy: The government carries out this policy in order to positively impact the economy through government spending and taxation.
  • Tariff: Tax levied on imported goods.

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