Final Government

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Final Government
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2010-12-05 23:26:28
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  1. Bureaucracy:
    namegiven to a large organization that has a structure hierarchy to carry outspecific functions
  2. Bureaucracy Theories:
    • Max Weber
    • Monopolistic
    • ModelGarbage Can Model
  3. Max Weber:
    • empathized the structure & procedure of government
    • 1. Chain of command: hierarchical structure and labor
    • 2. Division of Labor: work divided among many specialized workers
    • 3. Impersonal rules: all persons treated based on"merit"
    • 4. Specification of authority: clear lines of responsibility
    • 5. Goal orientation: determines structure, authority, and rules
  4. Monopolistic Model:
    • Describes bureaucracy asthe sole provider of a service
    • 1. There is seldom competition-leads toinefficient and costly operations
    • 2. There are no incentive to save costs or use resources more productively
    • 3. Red tape & government waste
  5. Article of Confederation:
    • Foreign Affairs
    • War
    • Treasury
  6. Characteristics of growth
    • Base on implements; the development of procedures and activities to carry out polices
    • 1. Regulatory - rule making located in the federal registry
    • 2. Distributive - distribution of benefits
    • 3. Redistributive – adjudication
    • 4. Constituent - general program development
  7. Factors that led to growth of the Federal Bureaucracy:
    • In 1789 Washington headed few bureaucracies
    • 1. There was the department of Foreign affairs which is now State, War, Justice and Treasury
    • 2. The most expansion occurred during times of war, social crisis or
    • economic emergency
  8. The basic unit of a bureaucrat:
    is the department and cabinet
  9. The executive branch has 4 major types of bureaucratic structure
    • 1. Cabinet
    • 2. Independent Executive agency
    • 3. Independent Regulatory Agency
    • 4. Government Corporations
  10. Cabinet:
    major administrative unit that have responsibility for conducting abroad area of government operations
  11. Independent Executive agency:
    • has a single function
    • 1. Created as needed, appointed by the president, and confirmed by the Senate
  12. Independent Regulatory agency
    • Typically responsible for a specific type of public policy.
    • 1. Created as needed, appointed by the president, and confirmed by the Senate.
    • 2. Headed by a commissioner and serve fixed and staggered terms Cannot be removed by President or Congress without "cause"
  13. Mini-Legislatures:
    • 1. Legislative: make rules
    • 2. Executive: provide for enforcement
    • 3. Judicial: decide disputes
  14. Government Corporations:
    • an agency of government that administers a quasi-business enterprise
    • The organizations include
    • 1. Government Sponsored enterprise
    • Fannie Mae and Freddie Mac
  15. The current bureaucracy has over 2.5 million
    employees
    Largest numbers of employees are found in the postal services [25%] and defense (33%)
  16. Political appointee:
    • occupy position for a comparatively brief time "to victor belong the spoils"
    • 1. Spoils system: based on patronage; rewarding those who supported the administration
  17. Civil servants:
    • Civil Service Reform Act/Pendleton Act 1883
    • 1. Created civil service commission to administration the personnel service
    • Hatch Act of 1939/ political Activities Act
    • 1. Civil service employees cannot take an active
    • part in the political management of campaigns
    • The Hatch Act Reform Amendments of 1993
    • 1. Permit most Federal employees to take an active
    • part in partisan political management and partisan political campaigns.
    • 2. Federal employees are still prohibited from
    • seeking public office in partisan elections
  18. Sunshine Law:
    1976 requires that all multi-headed federal agencies conduct their business regulation in public session.
  19. Sunset Laws:
    1976 requires an existing program be regularly reviewed for its effectiveness & terminated unless specifically extended as a result of this review.
  20. Civil Service Reform Act 1978:
    Office of personal Management, Merit System Board, Privatization, and Devolution.
  21. Office of personal Management 9 (OPM):
    1. Empowered to recruit, interview & test potential government workers & determine who should be hired
  22. Merit System Board:
    • 1. Evaluates charges of wrongdoing, hears
    • employee’s appeals from agency decisions & can order corrective action against employees & agencies.
  23. Whistleblowers:
    some who blows the whistle by their on gross government inefficiency or illegal action.
  24. Whistleblower Protection Act 1989
    establish an independent agency to guarantee whistle blowers protection against unjust dismissal, transfer, or demotion
  25. Privatization:
    replacement of government services with contracted services provided by private firms.
  26. Devolution:
    a policy to remove a program from one level of government by delegating it or passing it down to a lower level of government.
  27. Equality of opportunity:
    2nd paragraph of Declaration of Independence
  28. The history of the Welfare system:
    • Distinguishing between 2 classes of poverty
    • 1. Deserving poor:

    • 2. Undeserving poor:
    • Able bodied individuals unwilling to work.
    • Transients new to the community
  29. Foundation of Welfare state
    • Social security act 1935: 2 categories
    • 1. contributory
    • 2. noncontributory
  30. Contributory [forced savings]
    • Social
    • Unemployment
    • Medicare
  31. Social Security
    • Social Security - redistributes wealth
    • Individual: 7.65% tax rate
    • Self – employed: 15.30% tax rate in 2009 & 12.4% tax in 2010

    • ·OASDI – old age survive disability insurance
    • 6.20% on 1st $106,800

    • ·Cost of Living Adjustment [COLA]- set by legislature until 1975
    • 2009 was 5.8% but there is none for 2010 so the amounts remain until 1975

    • ·Medicare: No maximum pay set/table earnings
    • 1.45% on individuals
    • 2.90% on self – employed individuals
  32. Unemployment Compensation
    • ·Unemployed though no fault of their own
    • ·Dept. of labor oversees this part but it is administered by the state
    • · State sets the tax rate
    • Texas: min-.72% and max 8.20% on the first $9000 of each employee earnings annually
    • · National average is #275 per week up to 26/39 weeks
  33. Medicare
    • (1965) substantial medical services to elderly persons who are already eligible to receive old age 65, survivor and disability insurance under the original security system.
    • · Part A: Health Maintenance Organization: helps pay the cost of hospital inpatient and skilled nursing care for up to 100 days (Hospital Care)
    • ·Part B: supplemental medical insurance and optional add-on taken by virtually all those covered by Part A. It pays 80% of doctors and outpatient charges (Medical Care)
    • · Part C: Preferred provider Organization combines A & B with private insurance companies: may have a monthly premium because of extra benefits (Advantage Plan)
    • Part D: prescription drug coverage
  34. Noncontributory Programs:
    • also know as “public assistance” or “welfare”
    • 1. Family Assistance: AFDC replaced in 1996 w/ TANF through block grants
    • ·Medicaid: Program provides comprehensive health care, including hospitalization, physician services, prescription drugs, and long-term nursing home care to all
    • who qualifies as needy under TANF and SSI
    • ·Who qualifies Medicaid: pregnant women
    • and children in low-families whose total earnings were less than 133 percent of
    • the official poverty level
    • ·Supplemental Security Income [SSI].
    • ·Food stamps
    • Goldberg v. Kelley (1970)
  35. How do we pay for the welfare state?
    • Federal income taxes
    • 1. Personal Income
    • 2. Corporate Income
    • 3. Social security
  36. Who actually bears the heaviest burden of a tax?
    • 1. Progressive
    • 2. Regressive
    • 3. Flat
  37. Managing the Economy
    Employment Act 1946
  38. Protecting the Welfare & Property of Individuals
    • 1. Maintenance of law and order
    • 2. Regulating competition to level playing field
  39. Regulating Competition to level playing field
    • 1. Stop monopolies
    • 2. Uniform regulations
    • 3. Externalities:
    • 4. Financial reforms: FDIC, Securities Act
    • 5. Agriculture Adjustment Act – farm income by restricting agriculture production in order to bring it into better balance with demand.
    • 6. Labor: national labor relations act, fair labor standards act
  40. Should government be involved in the Economy
    • A. Classical/Laissez-faire capitalism
    • B. Keynesian Theory
    • C. Monetarists Theory
  41. Economic decision making
    • A. Fiscal policy: congress & president
    • B. Federal reserve system
    • C. Monetary policy – a form of government regulation in which the nation’s money supply and interest rates are controlled
  42. Protection the Welfare & Property of Individuals
    • Maintenance of law and order
    • Regulation competition to level playing field
    • Uniform regulations
    • Externalities
    • Financial reforms
    • Labor
    • Agriculture adjustment Act 1938
  43. Maintenance of law and order
    • Federal racketeering laws aimed at ending criminal efforts to control business thru extortion/kickbacks:
    • Influence and Corrupt Organizations Act RICO
  44. Regulationcompetition to level playing field
    • Stop monopolies
    • Sherman Anti-Trust Act (1890) to prevent all
    • restrains on trade, including price-fixing, bid-rigging, and market allocation agreements
    • Deregulation: Carters administration transportation
  45. Uniform regulations: to remove inconsistence among state
    • Motor Carrier Act 1935
    • Federal Communications Commission [FCC] 1934
    • 1. Charged with regulation interstate and
    • international communications by radio, television, wire, satellite and cable.
    • 2. Has jurisdiction covers the 50 states, the District of Columbia, and U.S. possessions.
  46. Externalities:
    • Burden that society incurs when firms fail to pay the full costs of production
    • EPS created to monitor and regulate air-and water qualities
    • 1. Superfund 1980 clean up waste sites
    • OSHA
  47. Financial reforms:
    • Federal Deposit and Insurance Corporation [FDIC] 1933 to insure deposits in banks [up to $250,000 per depositor]
    • 60 minutes: FDIC
    • Securities Act: 1933 requires investors be given full and accurate information about the stocks/securities being offered to them
  48. Agriculture adjustment Act 1938
    • Provides subsidies/payments to farmers who grew no more than their allotted acreage
    • Controlled supply of 7 basic crops; corn, wheat, cotton, rice, peanuts, tobacco and milk
  49. Labor
    • National labor relations Act/ Wagner Act 1935 guaranteed workers’ rights to organize and bargain collectively thru unions of their own choosing
    • Fair labor standards Act 1938: protect interest of low paid workers $7.25
  50. Classical/Laissez-faire capitalism
    • o Adam Smith, “Wealth of Nation” 1776
    • o Invisible hand of market
    • o Government should focus on”
    • 1. National defense
    • 2. Establish law & order (including protecting private property)
    • 3. Provide basic public good by maintaining roads
    • that facilitates commerce
    • Keynesian Theory
    • 1. John Maynard Keyes
    • 2. Instability was product of fluctuation DEMAND
    • o Monetary Theory
    • o Milton Friedman
    • o Regulating the supply of $ Federal Reserve System
    • o Control Inflation
  51. Economic decision making
    • o Fiscal policy (taxing spending)
    • 1. Economy policies involving taxing, spending and
    • deficit levels
    • 2. Congress: Article 1 sec, 8: lay collect taxes, to borrow $ on the credit of U.S. [CBO]
    • 3. President: recommends to Congress OMB, CEA
  52. Federalreserve system
    • central bank of bankers
    • 1. Regulate supply of $, both currency in circulation and bank deposits
    • 2. 7 members, serve 16 years term
    • 3. Oversee the 12 reserves” of banks
    • 4. Lend $ to banks @discounts rates
    • 5. Buy and sell U.S. government Treasury bonds on
    • the open market
    • 6. Loose monetary policy: supply of credit increases and its cost falls
    • 7. Tight monetary police: supply credit falls and its cost increases to control inflation

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