Policies vs. Theories (Economic)

Political Science 1100 with Overby at University of Missouri- Columbia

About this deck

By: Katie Baerveldt
Textbook:

American Government: Institutions and Policies

Printed Study Guide: Used with ...Wilson-American Government: Dolphin Edition; Wilson-American Government: Institutions and Policies
Created: 2012-05-09
Size: 8 flashcards
Views: 41

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Monetarism (ec. theory)

Suggests that the proper thing for government to do is to have a steady, predictable increase in the money supply at a rate about equal to the growth in the economy's productivity

Belief that inflation occurs when too much money is chasing to few goods

Keynesianism (ec. theory)

Key is to create the right level of demand

Belief that the government must manage the economy by spending more money when in a recession and cutting spending when there is inflation

Planning (ec. theory)

Ex.; price and wage controls

Belief that government plans like the direction of investment can improve the economy

Supply-side (ec. theory)

What is needed is not more planning but less government interference

Belief that lower taxes and fewer regulations will stimulate the economy

Majoritarian Politics (ec. policy)

Involve making appeals to large blocs of voters and their representatives in hopes of finding a majority

Policy in which almost everybody benefits and almost everybody pays

Distributed benefits, Distributed costs

Interest Group Politics (ec. policy)

A proposed policy will confer benefits on some relatively small, identifiable group and impose costs on another small group

Policy in which one small group benefits and another small group pays

Concentrated benefits, Concentrated costs

Client Politics (ec. policy)

Some identifiable small group will benefit, but many will pay the cost

Policy in which a small group benefits and almost everyone else pays

Concentrated benefits, Distributed costs

Entrepreneurial Politics (ec. policy)

Society as a whole or some large part of it benefits from a policy that imposes substantial costs on a small segment of society

Policy in which almost everybody benefits and a small group pays the cost

Distributed benefits, Concentrated costs