Ch.

17 Economic Policymaking
__________________________, the first US secretary of the Treasury, laid the basis of capitalism but created a mixed economy. Capitalism is an economic system in which ____________ and ____________, not the ________ own the principal means of production and seek profits __________ economy an economic system in which the govt is deeply involved in economic decisions through its role as regulator, consumer, subsidizer, taxer, employer, and borrower ________________________ businesses with vast holdings in many countries, many of which have annual budgets exceeding that of many foreign govts Govt, Politics, and the Economy Securities and Exchange Commission (SEC) federal agency created during the New Deal that regulates stock ________, stock ______________, and the stock __________ _________ ____________ an organization of workers intended to engage in collective bargaining Collective bargaining negotiations between _________________ of ____________ ____________ and ____________ to determine pay and acceptable working conditions Voters, Politicians, and Economic Policy What type of conditions profoundly affect voters electoral decisions?

These conditions are the best single predictor of voters evaluation of what? Democrats appeal to what groups of people?

__________________________ as measured by the Bureau of Labor Statistics (BLS), the proportion of the labor force actively seeking work but unable to find jobs Republicans appeal to what groups of people? Inflation the _______ in prices for consumer goods ________________________ the key measure of inflation that relates the rise in prices over time Policies for Controlling the Economy Which historical event triggered the governmens involvement in steering the economy? Which president clung the principle that govt should not meddle in the economy? What is this concept of not meddling in the economy called? What was FDRs principle in government involvement? Monetary Policy and the Fed ___________________ the manipulation of the supply of money in private hands by which the govt can control the economy _______________ an economic theory holding that the supply of money is the key to nationss economic health; monetarists believe that too much cash and credit in circulation produces inflation

What is the Federal Reserve System? When was the Federal Reserve System created and for what purpose? Why are the 7 members of the Feds Board of Governors given 14-year terms? Describe briefly how the Fed works. Fiscal Policy of Presidents and Parties _________ ________ is a policy that describes the impact of the federal budget taxes, spending, and borrowing on the economy. This is determined by ____________ and ____________ Describe the economic theory that the Democratic president FDR followed. Describe the economic theory that the Republican president Reagan followed. Why is it hard to Control the Economy? Politics, Policy, and the International Economy Most emerging economies want to follow an economic policy of protection; the policy of _________________________________. Hamilton supported __________on foreign products After WWII, the worlds govts moved to _____________ ___________ and reductions of tariffs Clinton passed the __________ __________ __________________ ___________, creating the ______________ Organization Arenas of Economic Policy Making: Business and Public Policy

What happened in 1980s between corporations and economic policy? What was the antitrust policy designed to do?

The Sarbanes-Oxley Act of 2002 was a law passed that provided tougher criminal penalties for __________ _________. It also created the _____________ ____________ ________ within the SEC to regulate industry practices. Arenas of Economic Policy Making: Consumer Policy __________________ Act of ____ (year) prohibited the interstate transportation of dangerous or impure foods and drugs. It paved the way for the creation of the Food and Drug Administration the federal agency formed in 1913 and assigned the task of approving all food products and drugs sold in the US. All drugs, with the exception of tobacco, must have FDA authorization ______________________ Act of ______ (year) created the Consumer Product Safety Commission (CPSC). The CPSC has broad powers to ban hazardous products from the market. The _________________ ___________ commission has become a defender of consumer interests in truth in advertising by making new rules about product labeling, exaggerated product claims, and the use of celebrities in advertising.

Labor and Government The National Labor Relations Act of 1935 (Wagner Act) guarantees workers the right of _____________ _______________ and sets down rules to protect unions and organizers, and created the ________________ ______________ ___________ Board to regulate labor-management relation Taft-Hartley Act of 1947 guaranteed unions the right of ________________ ___________, but prohibited various unfair practices by unions as well. It also gave the president power to halt major strikes