policy mid-term part 1

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  1. Left
    • Democrat
    • Liberal/Neo-liberal
    • Keynesian economics
    • institutional social welfare
    • more government: public
  2. Right
    • Republican
    • Conservative/Free market
    • Adams/Friedman
    • Supply Side economics
    • Residual economics
    • less government: private
  3. What have advocates of liberalism argued for?
    advancing the public good by promoting an expanding economy coupled with the growth of universal, non-means-tested socail welfare and health programs
  4. New Deal: Social Security Act of 1935
    The government taxes the wealthy, thereby securing the necessay revenues to fund social programs for workers and the poor
  5. Liberalism led to
    Federal Housing Administration, Medicare, Veterans' pensions, and federally insured student loans
  6. What was left of traditional liberalism was replaced by _____ that was
    • Neoliberalism
    • more cautious of government, less antagonistic toward big business, and more skeptical about the value of universal entitlements
  7. postliberal formulation replaced social welfare entitlements with investments in _____
    Human capital
  8. after the replacement of social welfare entitlements; public spending was divided into "_____" and "_____" categories.
    good and bad
  9. "bad":
    • unproductive expenditures on welfare and price supports
    • investments in human capital, such as education, research, and job training
  10. Keynesian economics _____.
    drives liberalism and most welfare state ideologies.
  11. Keynes' economic theories _____.
    formed the substructure and foundation of the modern welfare state, and virtually all welfare societies are built along his principles.
  12. Keynesian economics are sometimes called ____.
    Demand economics
  13. Keynes saught and economic balance. During a recession he believed in the need to
    print money and spend it then when it's over stop printing and spending to prevent inflation
  14. Whereas liberalism is guided by Keynesian economics, the conservative view of social welfare is guided by ____.
    free market economics
  15. Conservative or free market economics believe that ______.
    government is the cause of economic problems
  16. Milton Friedman called for a government that _____.
    inactive in economic affairs that did not try to manage of intervene in the business cycle
  17. In relavance to conservative or free market, supply side economics (popular in the 1980s) was an idea to ______.
    cut taxes, especially for the wealthy, believing they would have incentive to make more money, thus pay more in taxes, creating revenue
  18. Conservatives believe that large social welfare programs are _____, because they_____.
    • detrimental to society
    • erode work ethic and divert money that could be invested in the private sector
  19. The public choice theory states that ____.
    public sector bureaucrats are self-interested utility-maximizers, and that strong incentives exist for interst groups to make demands on government
  20. Public choice theory was _____.
    misnamed, does not represent the public, rather represents the lobbyist and interest groups
  21. Flaws in free market economy
    • unregulated free markets did not yeild superior economic gain
    • collapse of the housing market
    • foreclosures
    • subprime loans
    • risky investments
Card Set:
policy mid-term part 1
2012-02-24 18:45:15
policy mid term part

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