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O-K-State POLS 1113 - POLS FINAL REVIEW

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American Government FinalEconomic Policy- Democrats favor greater security within government regulation, taxation, and spending- Republicans favor greater liberty within lower taxes and less spending and regulation- Democratic Weaknesseso Tax increases and progressive rates are hard sells o An effective tool against candidates who support themo Citizens and groups with relatively high incomes fund campaigns- Republican Weaknesseso Tax cuts are popular but require corresponding cuts in spendingo Programs provide valuable and localized benefits to constituentso The cuts necessary to balance budgets are not enacted- Two types of Expenditureso Discretionary Expenditures (39%) Public programs that do not include guaranteed expenditures- Military Services (20%)- Agriculture Subsidies--------->>- Transportation ----------------- >> (39%)- Welfare-------------------- >>o Mandatory Expenditures (55%) Public programs with guaranteed expenditures- Social Security (37%)- Medicare and Medicaid (38%)- Social Security Programo The system is not bankrupt Previous excess revenues where used to pay for deficit spending Remember the SNL “Lock Box” debate- o Program now holds promissory notes from the government Even if these notes are repaid, growing expenditures will require at least some modification of the program- Potential Reforms of Social Securityo Benefit cuts and extending the eligible retirement age for future retireeso Increasing social security revenues by substantially raising the income cap from $110Ko Privatization of portions of social security benefits for future generations Considered during the George W. Bush Administration This would require 2 to 3 trillion in immediate debt to raise the funds It would change the program from a federal guarantee of benefits to a higher risk/reward from equity investments- Medicare and Medicaid Programso Medical care programs are on even worse footing Growing health care costs Increasing numbers of retirees Prescription drug benefit added in 2003- Added to an otherwise growing problem- Obama Administration Reforms to Medicare and Medicaido Marks an effort to both expand coverage and control costsIncludes an insurance mandate for individuals Subsidies for working poor to expand coverage Imposes taxes on plans with high levels of benefits Closes the pre-existing condition loophole for insurers Creates exchange marketplaces for consumers Costs $938 billion over 10 years Potentially reduces budget deficit by $138 billion over 10 years- East Asian Trade Politicso United States Export Deficit- Continuously imports more than it exports- Net effect is billions of $dollars move abroad every year- China and Japan finance our trade deficit but are now tied directly to our economic deficito East Asia Export Surplus- Continuously exports more than it imports- Instead of exchanging they accumulate and invest in $dollar based securities- Maintains an artificially high $dollar and cheap Yen and Won- Trade Deficits and Monetary Policieso The Federal Reserve Overnight Reserve Rates (Fed Funds Rate)- Expands or contracts the amount of money supply in the economy- Acts as the starting point for the prime lending rate maintainedby commercial banks- An important tool to regulate economic growtho Can spur economic growth in times of recessiono Can curtail economic growth in booming economies to prevent inflation- Fiscal Cliff & Sequestrationo Result of divided government and a polarized Houseo The “Grand Bargain” in some form will be back on the table Would have significant increases in taxes and revenues Would have significant cuts in Social Security Sooner the better for your generation System responds to pressure - send an email- Healthcare system is the biggest issueo Trend towards universal coverage will continue Idea is to get everyone into the system first Then use regulation to curtail the excessive growth of costs Expect heavy resistance from healthcare interest groups- Will resist changes to their profit structures- Issue advocacy campaignso Issue ahead is what procedures will be covered Hard choices about who gets what treatment Will be framed as “death panels” Simply necessary and in the end it serves your interestsCivil Liberties and Rights Civil Libertieso Protections of citizens from improper governmental actiono 1st Amendment  “Congress shall make no law respecting an establishment of religiono 4th Amendment “The right of the people to be secure in their persons, houses, papers and effects against unreasonable searches and seizures, shall not be violated” Obligations placed upon governments to guarantee equal citizenship and protect citizens from discriminatory practiceso 14th Amendment “No state shall make or enforce any law which shall abridge the privileges or immunities of citizens” “Nor shall any state deprive any person of life, liberty, or property, without due process of law” “Nor deny to any person within it jurisdiction the equal protection of the laws”  Era of Dual Citizenshipo For most of U.S. History the Bill of Rights applied only to the actions of the U.S. Government Barron v. Baltimore (1833) Matters involving the U.S. Government- Citizens’ liberties were guaranteed by the Constitution Matters involving a state government- Citizens’ liberties were guaranteed by their state constitutions Incorporation of the Bill of Rightso The era of dual citizenship potentially ends along with the Civil War 14th Amendment- “All persons born or naturalized in the United States and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside”- But . . . it wasn’t immediately interpreted this way Civil Rightso Separate but Equal Plessy v. Ferguson (1896)- Decision establishes the separate-but-equal doctrineo Separate facilities for Blacks and Whites satisfied the 14th Amendment so long as they were equal - Public enterprise allowed to maintain segregated accommodationso Pre-Brown Truman - Committee on Civil Rights (1946)- Executive order 9808 Truman – Desegregation of Military (1948)- Executive order 9981 Sweatt v. Painter (1950)- Ruling against segregation at the University of Texas law school Shelley v. Kraemer (1948)- Ruling against racial covenants in real estateo Post-Brown Brown v. Board of Education (1954)-


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