AP GOVERNMENT KEY TERMS

Unit 5: PUBLIC POLICY 1. Appropriations Committee: Congressional committee that deals with federal spending 2. Agenda setting: Advocating a set of issues, problems, or subjects that gets the attention of, or is viewed as important by people involved in policymaking 3. Bipartisanship: Support from both parties for policy, e.g., a bipartisan foreign policy 4. Defense Department: Chief executive department responsible for formulation and implementation of US military policy 5. Deficit spending: The federal government’s practice of spending more money than it takes in as revenues 6. Discretionary spending: The portion of the budget that the President requests and Congress appropriates every year. It represents less than 1/3 of the federal budget, while mandatory spending accounts for around 2/3 7. Entitlements: Federal benefit payments to which recipients have a legal right, e.g., Social Security. Also known as uncontrollable spending 8. Federal Reserve Board: A board that sets member banks’ reserve requirements, controls the discount rate, and makes other economic decisions regarding monetary policy for the US government 9. Fiscal policy: Government policy that attempts to manage the economy by controlling taxing, spending, and the federal budget 10. Flat taxation: A tax that requires everyone to pay the same rate, no matter their income level 11. Mandatory spending: Spending not controlled by annual budget decisions (nondiscretionary spending) 12. Means tested spending: Government programs providing benefits only to individuals who qualify based on specific needs 13. Medicaid: Federally funded medical care for the poor 14. Medicare: Federally funded medical care for the elderly 15. Monetary policy: The Federal Reserve Board’s regulation of the supply of money in circulation 16. NAFTA: Also known as the North American Free Trade Agreement. Created to allow the free movement of goods between Canada, Mexico, and the US by lessening and eliminating tariffs 17. National debt: Total debt owed by the federal government due to past borrowing 18. National Security Council (NSC): Created to coordinate the President's foreign and military policy and includes the President, Vice President, Secretary of State, and Secretary of Defense, and is managed by the President's National Security Advisor 19. Progressive taxation: A tax graduated so that people with higher incomes pay a larger fraction of their incomes than people with lower incomes 20. Regressive taxation: A tax whereby people with lower incomes pay a higher fraction of their incomes than people with higher incomes 21. Social welfare policy: Policies that provide benefits to individuals based on their entitlement or means testing 22. State Department: The federal department in the United States that sets and maintains foreign policy 23. Tariff: Tax levied on imports to help protect a nation’s industries, labor, or farmers from foreign competition 24. Treasury Department: The treasury of the United States federal government. It mints all paper currency and coins in circulation. The department also collects all federal taxes and manages the U.S. Government debt 25. Ways and Means Committee: House committee where taxation bills originate

UNIT 5: PUBLIC POLICY

MAIN TOPICS DOMESTIC POLICY FOREIGN & MILITARY POLICY

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DOMESTIC POLICY

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AP AMERICAN GOVERNMENT STUDY GUIDE PUBLIC POLICY DOMESTIC POLICY MAKING POLICY & INFLUENCING POLICY MAKERS

SPECIFIC BROAD CATEGORY DESCRIPTION SEGMENT

A group which attempts to win elections Political Parties so they can control the government. LINKAGE -•Use propaganda to influence society. Interest Groups -•Use PACs to influence elections. INSTITUTIONS -•Hire lobbyist to influence Congress. (THEY INFLUENCE POLICY) Selects stories to cover thus that topic Media gains our attention. (This could place issues at a higher priority on our nation's agenda)

Congress Creates laws.

GOVERNMENT President Issues executive orders. INSTITUTIONS (THEY MAKE POLICY) Bureaucracy Agencies set regulations (rule-making)

Judicial Court sets a precedent.

-•Policy is basically anything a government decides to do. -•Domestic Policy includes everything a government takes care of within U.S. borders. The United States has developed policy to take care of its people, especially the less fortunate, to protect the environment, to finance government, and to enhance that state of the economy. -•Remember linkage institutions connect people to the government.

THEORIES ON THE COST & BENEFITS OF POLICY THE THEORY THE COST EXAMPLE BENEFIT

Distributed Distributed -•Social Security MAJORITARIAN (Everyone pays) (Everyone gets) -•Military Protection

-Congress passes a law Concentrated Distributed that factories can only ENTREPRENEURIAL (Some pay) (Everyone gets) allow so much carbon emissions per year.

Distributed Concentrated -•Food stamps CLIENT POLITICS (Everyone pays) (Some get) -•Medicaid

Congress passes law that Concentrated Concentrated when a factory closes they INTEREST GROUP (Some pay) (Some get) must give the workers 60 days notice.

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AP AMERICAN GOVERNMENT STUDY GUIDE PUBLIC POLICY DOMESTIC POLICY THEORIES ON INFLUENCING POLICY

THEORY DESCRIPTION

MAJORITARIAN They focus on carrying out the will of the majority. POLITICS (Framers wanted to stop the tyranny of the majority)

ELITE THEORY People with more money and influence dominate the policy-•making process.

INTEREST GROUP Interest groups organize PACs to influence elections POLITICS and hire lobbyists to influence policy creation.

PLURALIST THEORY Viewpoints are so scattered no group can control all the levels of government.

Other textbooks refer to other theories: -•Class View (theory) government is dominated by capitalists. -•Bureaucratic View (theory) in which appointed officials have too much control of the government. -•Power Elite View (theory) government is dominated by a few top leaders (many outside of government).

BASIC OF POLICY DEVELOPMENT PHASE DESCRIPTION

The agenda is a set of issues to be discussed or given attention. Presidents recommend legislation. AGENDA SETTING Congress members propose bills in their house. Polls and media show government officials how the people feel about policy.

POLICY FORMATION Political leaders look at the cost benefit analysis to decide if policy is worthy.

POLICY ADOPTION Congress creates policy (law) with presidential approval.

POLICY An agency within the executive branch that deals with IMPLEMENTATION that topic is selected.

The public and government react to new policies to POLICY EVALUATION decide if any changes are needed. Congress is the tool used to change budgets or alter policy laws.

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AP AMERICAN GOVERNMENT STUDY GUIDE PUBLIC POLICY DOMESTIC POLICY SOCIAL WELFARE POLICY

PROGRAM DESCRIPTION

● The Social Security Act of 1935 created an insurance program that required the employed to pay a small contribution via a payroll tax into an insurance fund designed to assist the unemployed to help financially strapped retirees.

SOCIAL ● It also helps blind, elderly, and less fortunate people.

SECURITY ● Officially called Old Age, Survivors, and Disability Insurance and it is administered by the Social Security Administration.

● Most employed citizens pay 12.4 percent (6.2 by employer, and 6.2 by employee) of which they can start collecting at age 65.

● Although it was one of FDR’s plans the Medicare law was passed in 1965 and it is administered by the Department of Health and Human Services.

MEDICARE ● It is funded by a payroll tax of 1.45 percent paid by both employee and employer. (People who make over 200,000 by 3.8 percent)

● Must be 65 years old to collect benefits.

● Health insurance coverage for the poorest Americans MEDICAID ● Eligibility requires minimum-•income thresholds or being disabled or pregnant.

● Citizens purchase their own health care coverage. HEALTH CARE ● Patient Protection and Affordable Care Act in 2010 attempts to expand coverage.

-•The only portion of the Constitution that refers to welfare is in the preamble stating the government will “promote the general welfare” -•Government intervention increased during the Great Depression with The New Deal -•Food Stamps & Housing also exist for means-•based needs (only if they make under a certain amount)

NON-•MEANS TESTED VERSUS MEANS-•TESTED

-•Social Security (OASDI) NON-•MEANS-• Meet general requirements -•Medicare TESTED (does not include financial need) -•Veterans’ Disability -•Unemployment Benefits

-•Medicaid MEANS-• Meets requirement that -•Supplemental Security Income TESTED shows financial need -•Temporary Assistance for Needy Families -•Food Stamps

Unemployment appears in wrong category at first glance. But actually if you are fired you can collect regardless of savings.

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AP AMERICAN GOVERNMENT STUDY GUIDE PUBLIC POLICY DOMESTIC POLICY ENVIRONMENTAL POLICY

ITEM DESCRIPTION

Requires any government agency, state or federal, Environmental to file an environmental impact statement with the Protection Policy Act federal government every time the agency plans a (NEPA) (1969) policy that might harm the environment, dams, roads, or existing construction. Clean Air Act Calls for improved air quality and decreased (1970 Amendment to PCA) contaminants.

Clean Water Act Regulates the discharges of pollutants into the water (1972)

Endangered Empowers the National Fish and Wildlife Service to Species Act protect endangered species. (1973)

Congress created this to pay for waste cleanup in Superfund the instances in which the company responsible is (1980) unknown or has gone bankrupt.

Environmental It along with federal government require states to set air quality standards, to reduce damage done by Protection Agency automobiles, to measure city smog, and to set (EPA) (1970) environmental guidelines.

● A multi-•country agreement that committed the signing nations to reduced greenhouse gas Kyoto Protocol emissions. (1997) ● Bill Clinton liked it but ⅔ of the Senate did not agree.

-•Environment was first being seen as an issue in late 19th century, it was in the 1960’s and 1970’s (with the creation of the majority of acts and laws listed above) in which the government started regulating business in order to protect the environment. There has been backlash ever since.

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AP AMERICAN GOVERNMENT STUDY GUIDE PUBLIC POLICY DOMESTIC POLICY LABOR POLICY

ITEM DESCRIPTION Wagner Act (AKA: National Labor Created the National Labor Relations Board Relations Act) (1935)

A federal executive branch commission: National Labor ● Regulates labor organization ● Hears complaints of unfair labor practices Relations Board ● Ensures workers’ rights to collectively bargain with management.

Fair Labor ● Established minimum wage Standards Act ● Set 40 hour work week (1938) ● Required overtime pay

Favored by the business community: ● Enabled states to outlaw the closed shop (a company policy or labor contract that requires all employees to join the local union) Taft-•Hartley Act ● State could now pass “right to work” laws (1947) ● Allowed the federal government to block any labor strike in an industry that might put into jeopardy the “national health or safety”

Occupational Safety and Health Act Created the Occupational Safety and Health Administration (1970)

Occupational Safety A federal regulatory agency: and Health ● Inspect factories & workplaces for occupational hazards Administration ● They can give fines to companies and even close them (OSHA) down until problems are fixed.

We have a mixed economy in the United States. We have a free enterprise system in which people can own the factors of production (land, labor, capital) instead of the government. But we also have government regulation in order to ensure the production of safe products and safe working conditions. -•Labor regulation came into effect due to conditions under rapid industrialization.

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AP AMERICAN GOVERNMENT STUDY GUIDE PUBLIC POLICY DOMESTIC POLICY EXECUTIVE INFLUENCE ON ECONOMIC POLICY

PRESIDENTIAL ECONOMIC DESCRIPTION ADVISORS

Three person panel in the White House Executive Office that Council of forecasts economic trends and makes predictions on the Economic Advisors economy.

Is the President’s chief accountant charged with determining Director of the Office of how much the federal government should spend year to Management and Budget (OMB) year.

The Treasury Department carries out tax laws, enforces Secretary of the Treasury economic sanctions, advises the president, and maintains the country’s financial infrastructure.

-•Obviously we have already talked about how Congress is influenced by interest groups. Americans public blames politicians for a bad economy (regardless of the fact that there are many economic influences that our government does not truly control) at election time. (The President is held most accountable) -•The American people do belief that presidential philosophy and the collective attitude of Congress can influence the value of the dollar, trade relationships with foreign nations, taxes paid into the federal purse, and the federal budget. -•People want lower taxes, no national debt, and enhanced government services (all three together is impossible)

ECONOMIC IDEOLOGY THEORY DESCRIPTION

● This theory believes the government should get involved to ensure the right amount of demand. (This is referring to how much money is in the economy) ● When demand is too low, the government should put more money into the economy by reducing taxes and/or increasing government spending (Even if we need to borrow the money) KEYNESIAN ● If demand is too high, the government should take money out of the economy ECONOMICS by taking more and/spending less. ● Multiplier Effect: Best explained with an example: a $10 billion increase in government spending could cause the total output to rise by 15 billion (a multiplier of 1.5) because when the government spends money to begin a construction project they hire builders who also hire bricklayers, electricians, and plumbers who purchase supplies for their jobs who take portions of their earnings to pay for food, shelter, transportation and clothing.

● This theory represents a fiscally conservative approach (Also known as supply side theorists, or supply-•siders) SUPPLY-•SIDE ● This approach believes that less taxes will cause people to have more money to spend (which they will spend) and this spending will increase purchasing, jobs, THEORY and manufacturing. The states will collect more money in sales taxes. ● If people do not spend more they will then invest their savings to make more money thus boosting the economy.

Other books include theories: -•Monetarism: The belief that inflation occurs when too much money is chasing too few of goods. They want a predictable increase in the money supply at a rate about equal to the growth in the economy’s productivity. -•Economic Planning: The belief that government plans, such as wage and price controls or the direction of investment can improve the economy.

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AP AMERICAN GOVERNMENT STUDY GUIDE PUBLIC POLICY DOMESTIC POLICY MONETARY POLICY VERSUS FISCAL POLICY

POLICY DESCRIPTION

● How the government manages the supply and demand of its MONETARY currency and thus the value of the dollar. ● This is done by the Federal Reserve Board (The Fed).

● How the government decides to tax and spend money. FISCAL ● This is done by primarily by Congress (President signs)

THE FEDERAL RESERVE BOARD, AKA: THE FED (MONETARY POLICY) POWER OF THE FED DESCRIPTIONS

This is when American citizens and foreign

governments purchase government bonds & treasury BOND RATES notes (securities) with the promise the U.S. government will pay them back with a certain amount of interest. ● The Fed decides what rate those bonds pay out.

The interest rate at which the government loans actual DISCOUNT RATE dollars to commercial banks. ● The Fed sets that interest rate

Commercial banks must have a certain amount of cash RESERVE in their vaults. This affects how much money that bank REQUIREMENTS can loan out (put into economy). ● The Fed decides how much money banks keep on hand

-•Federal Reserve System created by Congress in 1913, is made up 3 components: Federal Reserve Board (most powerful), Federal Open Market Committee, and 12 Regional Federal Reserve Banks. -•The Federal Reserve Board is an independent agency (Presidents can appoint (with consent) and remove with cause (although no one ever has). The elections of board governors (members) are staggered as to not become a presidential election issue.

CONGRESS (FISCAL POLICY) FISCAL POLICY DESCRIPTION

REVENUE Taxes (primarily income) and borrowing

SPENDING Congress (with President) creates policy which costs money

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AP AMERICAN GOVERNMENT STUDY GUIDE PUBLIC POLICY DOMESTIC POLICY

TAX PHILOSOPHY (FISCAL POLICY)

TYPE OF TAX DESCRIPTION EXAMPLE

The more you make the more PROGRESSIVE TAX Income Tax you pay.

FLAT TAX Everyone pays the same rate. Sales Tax

-•Some people think a progressive tax is fair because the rich can afford to pay more money than the poor. -•Some people think a progressive tax is unfair because they worked harder to make more money so they should not be penalized and also people could invest more money into the economy if they were taxed less. -•Some AP Tests include questions in which they expect you to know that a Regressive Tax affects a poorer person’s pocketbook more than a richer person even though they are paying a flat rate (or the same percent). Example: Person A and Person B are both paying an excise tax on cigarettes. If Person A makes 100 dollars a year and spends 1 dollar on cigarette tax that is 1% of their income. But if Person B makes 10 dollars a year and spends 1 dollar on cigarette tax that is 10% of their income.

TAX POLICIES (FISCAL POLICY) TAX ORIGIN TYPE OF TAX DESCRIPTION

Income Tax Tax on money earned from working.

Also known as death tax. When people inherit Estate Tax money from a relative it can be taxed. NATIONAL

Companies pay money for obtaining profits. (Federal) Corporate Tax (Varies between 15-•35%)

Pay money to purchase certain items like alcohol, Excise Tax tobacco, gasoline, and airline fees.

Sales Tax Pay money to purchase something.

Pay money to have your property (Even if you Property Tax own your house) (This is how a state raises largest amount of revenue)

Business License Pay money to operate a business. STATE

Pay money to take test and have permission to Drivers’ License drive.

Marriage License Pay money to legally wed another.

Hunting & Fishing Permits Pay for the right to hunt or fish for a period of time.

-•The United States did not have the right collect income taxes until the 16th Amendment in 1913. This amendment also allows the government to tax incomes from successful investments, gambling winnings, earned interest, and stock dividends. -•The average U.S. citizen pays about 25.4% of income in various taxes (combining Federal and State)

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AP AMERICAN GOVERNMENT STUDY GUIDE PUBLIC POLICY DOMESTIC POLICY

THE FEDERAL BUDGET (FISCAL POLICY)

BRANCH OF SPECIFIC AREA DESCRIPTION GOVERNMENT

Submit spending desires to Federal Agencies department secretaries.

Department heads may tweak Department Secretaries requests and send them to OMB. Headed by a director (President’s EXECUTIVE Office of Management and accountant) that considers the BRANCH Budget (OMB) needs and wants of all the federal departments and agencies.

● The Budget Director (in consultation with the President) They finalize and submit the ● Council of Economic President's budget proposal to Advisors Congress. ● Treasury Secretary.

Sets overall levels or revenues and

expenditures, the size of the budget Congress surplus or deficit, and spending priorities.

Nonpartisan accountants that Congressional Budget Office examine and analyze the budget (CBO) proposal.

Independent and nonpartisan…it LEGISLATIVE Government Accountability acts as watchdog of congressional funds and keeps track of where and BRANCH Office (GAO) how money is spent (headed by U.S. Comptroller General)

They examine the President’s Congressional Committees budget. They take up & pass appropriation bills (spending bills).

Passes the overall budget bill then Congress goes to the President for a signature.

-•In summary the President submits a budget to Congress who controls the purse strings. -•Budgets have been done in this matter since the Congressional Budget and Impoundment Control Act (1974). This law also makes it illegal for a President to impound funds (not spend them). -•The fiscal year is October 1 through September 30.

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AP AMERICAN GOVERNMENT STUDY GUIDE PUBLIC POLICY DOMESTIC POLICY

DEBT AND DEFICITS (FISCAL POLICY)

TERM DESCRIPTION DEBT (NATIONAL DEBT) The grand total that the United States owes at any one time. (PUBLIC DEBT)

DEFICIT When the United States spends more than it takes in as revenue.

SURPLUS When the United States spends less than it takes in as revenue.

-•The United States owes money in the forms of bonds and securities (treasury notes) to American citizens and foreign governments. -•The United States is seen as a good investment because it has a strong economy and it pays it debts. It is sort of like the United States has a huge credit card bill but it always makes some payments (when someone pays the minimum payment every month VISA is happy). -•The United States has been in debt since 1836. It owed over 18 trillion in 2015. -•in 2006 the United States paid 226 billion for interest on the debt (this was the 3rd largest area of spending). -•The last budget surplus was under Bill Clinton (and that was super rare). -•It is difficult to compare deficits from budgets through history because of inflation. This is why economists compare this as a percentage of the U.S GDP (gross domestic product: the total value of all goods and services produced in the United States in one year). -•Budget related legislation: Gramm-•Rudman-•Hollings Act (1985): initial deficit reduction effort (not effective). Budget Enforcement Act (1990): Set limits on discretionary spending and created a “pay as you go system”. Omnibus Budget Reconciliation Act (1993): incorporated a mix of tax increases and entitlement reductions. -•9/11 retaliation and housing collapse in recent history has appeared to justify deficit spending again.

ENTITLEMENT PROGRAMS (FISCAL POLICY)

DEFINITION Government services Congress has promised to citizens that meet a requirement.

Social Security, Medicare, Medicaid, block grants, financial aid, EXAMPLES food stamps, money owed on bonds and other contractual obligations. PERCENT This makes up ⅔ of the budget. OF BUDGET

There is no way to know for sure how many people will meet the requirement that qualifies them for food stamps in January versus February, or March. The point is the government cannot possibly know how much money it will need to pay the benefits to these recipients. Thus spending becomes mandatory and uncontrollable.

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AP AMERICAN GOVERNMENT STUDY GUIDE PUBLIC POLICY DOMESTIC POLICY

TYPES OF SPENDING IN THE BUDGET (FISCAL POLICY)

AMOUN T TYPE ALSO KNOWN AS OF DESCRIPTION BUDGET

Entitlement programs must

be funded according to

federal law. (Lawmakers do UNCONTROLLABLE MANDATORY 2/3 not know how many people will SPENDING SPENDING qualify month to month so they do not actually know how much money they are allocating to each program)

Government writes

checks for specific items

CONTROLLABLE DISCRETIONARY that could always be 1/3 SPENDING SPENDING altered or decreased. (Lawmakers have complete control over how much money they are allocating to each program)

-•Social Security makes up 20% of budget. Medicare and Medicaid make up nearly 20%. Although Congress could change the requirements to qualify for benefits it is considered politically unsafe to suggest or make such changes. -•Defense spending makes up 20% of budget and is considered discretionary spending. -•One study claims there are reasons money is unnecessarily spent: 1) fraud and abuse 2) waste 3) pork

GLOBALIZATION ITEM DESCRIPTION EFFECT OF IT

TRADE SURPLUS When a country exports (sells) Wealth from other nations (FAVORABLE TRADE BALANCE) more than it imports (purchases). enters the economy.

When a country imports The wealth leaves your TRADE DEFICIT (purchases) more good than it economy to enter another exports (sells). country’s economy.

An agreement between the NORTH AMERICAN This created a battle United States, Mexico, and FREE TRADE between corporations and Canada (it basically removes all AGREEMENT (NAFTA) labor unions. import taxes).

-•Globalization: is the process of an ever-•expanding and increasingly interactive world economy. -•The business community favors free trade to create a free flow of goods and services on a global scale. They also believe that the process has decreased poverty and enhances the general quality of life in foreign nations. -•Laborers fear that American firms will outsource their labor requirements (which many have done)

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FOREIGN & MILITARY POLICY

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FOREIGN POLICY CONSTITUTIONAL FRAMEWORK REGARDING FOREIGN POLICY BRANCH FOREIGN/MILITARY POWERS

Congress has the power to declare war.

Congress funds the military, foreign endeavors, and foreign aid.

The Senate must approve appointed ambassadors and high-•ranking military personnel. CONGRESS The Senate must ratify treaties with other nations by a two-•thirds vote.

Congress has oversight of the State and Defense Departments and relevant agencies.

Congress can institute a mandatory military draft to staff the Armed Forces.

The President is Commander-in-Chief of the Armed Forces.

The President appoints ambassadors and receives foreign ministers. THE The President negotiates treaties with other nations. PRESIDENT The President issues executive orders that can impact foreign policy.

The President makes executive agreements with other heads of state.

The President commissions the military officers of the United States.

Due to constitutional principles: separation of powers and checks & balances the powers regarding foreign policy are spread out over numerous branches. These powers has had a tremendous impact on foreign policy in the United States.

GENERAL PHASES OF FOREIGN & DEFENSE POLICY PHASE OF POLICY DESCRIPTION

ISOLATIONISM The policy of avoiding participation in foreign affairs. (Isolation was rarely absolute)

UNILATERALISM A national policy of acting without consulting others.

The policy of emphasizing morality in foreign affairs. MORALISM (Most Americans believed their country had higher moral standards than other countries)

Taking advantage of a situation for national gain. PRAGMATISM (When European nations went to war, we sold arms to both sides. When opportunities to acquire more land arose, it was aggressively pursued.)

-•The United States reasoning for invoking policy has shifted over the years.

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AP AMERICAN GOVERNMENT STUDY GUIDE PUBLIC POLICY FOREIGN POLICY FOREIGN POLICY INFLUENCE FROM INSIDE THE GOVERNMENT

SPECIFIC INFLUENCER DESCRIPTION SEGMENT

The president has exclusive sources of information (Department of State diplomats, military attaches working for the Department of Defense, CIA THE PRESIDENT agents and satellites). The president has a lot of power when acting as the Commander-•in-•Chief.

30,000 people work gathering information on foreign political, economic, DEPARTMENT social, and military situations. They also staff American embassies in OF STATE over 180 countries. 30 billion was spent in 2008 in order to fund (Primarily Diplomacy) economic development, disease prevention, nuclear proliferation, anti-•terrorism, the Peace Corps, and global peacekeeping capabilities.

DEPARTMENT The Pentagon contributes to policy formulation and provides forces to undertake military operations. Thousands of civilians and millions of OF DEFENSE active duty military. (Includes JCS, NSA, CIA, NSC, Dep of Homeland Security) THE JOINT CHIEFS Provides a link between senior civilian leadership in the Department of Defense and the military. They also help coordinate between various EXECUTIVE OF STAFF BRANCH branches of military.

NATIONAL SECURITY Intelligence agency responsible for gathering intelligence from electronic AGENCY (NSA) sources and for breaking foreign information transmission codes

CENTRAL Executive agency responsible for collection and analysis of information INTELLIGENCE and intelligence about foreign countries and events. AGENCY (CIA)

NATIONAL SECURITY Executive agency responsible for advising the president about foreign and defense policy and events. (Include President, Vice-President, Sec COUNCIL (NSC) of State, Sec of Defense, Joint Chiefs of Staff, and the CIA director.

DEPARTMENT OF Cabinet department created after the 9/11 attacks to coordinate domestic U.S. security efforts against terrorism. (Include Coast Guard, HOMELAND SECURITY FEMA, TSA, Customs & Border Protection and Immigration Services)

CONGRESSIONAL Congress usually agrees/changes/rejects the president's policy. LEADERSHIP Congress decided Soviet’s Sputnik was a threat so they created NASA.

Congress conducts hearings on foreign policy. Trying to force President CONGRESSIONAL and CIA to inform congressional committees on covert missions. Both OVERSIGHT houses have Foreign Relations Committees & Armed Services Committees.

CONGRESS TREATIES ⅔ of Senate approves treaties made by Department of State.

APPOINTMENTS Majority of Senate must approve presidential appointments.

Appropriation committees in Congress decide how much money APPROPRIATIONS agencies and programs receive. (Step after authorization)

THE WAR POWERS ACT Limits the president (60 days) for troop deployment during peacetime OF 1973 unless Congress approves an extension. Constitutional???

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AP AMERICAN GOVERNMENT STUDY GUIDE PUBLIC POLICY FOREIGN POLICY FOREIGN POLICY INFLUENCE FROM OUTSIDE THE GOVERNMENT

INFLUENCER DESCRIPTION

After World War II, the United States was in an arms race and space race with the Soviet Union. This era led BUSINESS to a relationship in which business and the military got (AKA: MILITARY very close (Like more than just friends) and is known as INDUSTRIAL COMPLEX) the Military-•Industrial Complex. Because of their shared interests in money and power they have become influential in foreign and military policy making.

The media influences foreign policy but it does not THE NEWS MEDIA determine it. Vietnam is the classic example in which as the war continued on the media coverage continued and showed Americans the agony of war.

The American public affects foreign and military policy THE PUBLIC through expressions of public opinion, elections, and public action. (Example of action: protesting the draft)

There are 2,000 U.S. think tanks (400 in Washington NON-•GOVERNMENT D.C.) that deal with foreign policy. One of the most ORGANIZATIONS influential is the Council on Foreign Relations, which is (ALSO THINK TANKS) a nonpartisan think tank that studies issues of trade, security, and relationships.

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AP AMERICAN GOVERNMENT STUDY GUIDE PUBLIC POLICY FOREIGN POLICY FOREIGN POLICY INFLUENCE FROM OUTSIDE THE UNITED STATES

INTERNATIONAL DESCRIPTION ORGANIZATION

CAFTA Free trade zone (no tariffs) for this region. (Central Atlantic Free Trade Agreement)

EUROPEAN ECONOMIC UNION Now the U.S. deals with a united Europe (They are united (EEU, EU) on policies that affect trade and defense)

Strong economic countries meet to improve G-•8 SUMMITS international cooperation and economic development (countries include: the U.S., Great Britain, Russia, China, Germany, France, Japan, and Canada)

Group attempts to promote stable currency exchange INTERNATIONAL MONETARY rates, favorable balances of payments, and economic FUND (IMF) development through the enforcement of economic policies.

MULTINATIONAL Multinational ownership of property, financial CORPORATIONS instruments, and companies is becoming influential.

NAFTA Free trade zone (no tariffs) for Canada, Mexico, U.S. (North American Free Trade Agreement)

NATO Originally formed to protect the West from Communism. (North Atlantic Treaty Organization) Now includes former communist nations.

This attempts to promote world peace and human UNITED NATIONS rights. There are 192 nations in it.

WORLD BANK This organization gives loans to developing nations.

WORLD TRADE ORGANIZATION Its main goal is to expand free trade.

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AP AMERICAN GOVERNMENT STUDY GUIDE PUBLIC POLICY FOREIGN POLICY THE DEFENSE BUDGET

COMPONENT DESCRIPTION TRENDS IN SPENDING 1960’s: 40% 1980’s: 25% 1989: 20% (Post-Cold War) 2015:16% (% of budget)

The Pentagon pressures Congress for premium war GOLD PLATING machines.

Private companies bid low so they can get the job. Then EVIL COMPANIES they are like, “oh sorry Uncle Sam, it cost more than I thought...so here is your new bill”

All over the United States. They create jobs. Congress BASES members like bringing that pork home to their districts.

Today the partisan divide is more noticeable than during Cold PARTISAN DIVIDE War for spending. Republicans are more willing to spend on military.

MILITARY CONFLICTS VERSUS DECLARATION OF WAR WARS DECLARED BY MILITARY CONFLICTS CONGRESS (NO DECLARATIONS OF WAR)

1801: Barbary Coast 1980: Iran (hostage crisis) 1812: Against the United 1817: Florida, Spain 1983: Grenada Kingdom 1845: Mexico: Border Fight 1983: Lebanon 1861: Civil War 1987: Persian Gulf 1899: Philippines 1989: Panama (Noriega) 1846: Against Mexico 1899: Cuban Insurgents 1991: Iraq/Kuwait 1900: China (Boxer Rebellion) 1992: Somalia 1898: Against Spain 1917: Mexico (Pancho Villa) 1999: Bosnia/Kosovo 1918: Russian Revolution 2001: Afghanistan 1917: Against Germany, 1950: Korea (until 1953) 2003: Iraq Austro-•Hungary, Turkey 1954: Guatemala 1958: Lebanon 1941: Against Japan (Germany and 1961: Cuba (Bay of Pigs) Italy declared on U.S. after December 8, 1962: Vietnam (until 1972) 1941) 1965: Dominican Republic 1970: Cambodia

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AP AMERICAN GOVERNMENT STUDY GUIDE PUBLIC POLICY FOREIGN POLICY

BRIEF HISTORY OF WAR AND DIPLOMACY (INDEPENDENCE-•WWI)

PHASE EVENT/POLICY DESCRIPTION

REVOLUTIONARY WAR British colonies fought for independence. With the financial and military help of British enemies, the United States successfully (1775-•1783) becomes a nation. GAINING &

MAINTAINING The United States fought against Britain (with Canadian colonies INDEPENDENCE and Indian support) Although the Treaty of Ghent signed in WAR OF 1812 (1812-•1814) December of 1814 ended the war the Battle of New Orleans was fought in January of 1815 (no tech like cell phones). The United States won defending its new(ish) sovereignty.

-•Louisiana Purchase (1803) from France 828,000 square feet west of Mississippi River for 15 million, nearly tripled the size of the United States PURCHASING LAND -•Texas (1845) annexed (Considered a nation at time) -•Florida (1819) from Spain MANIFEST -•Oregon (1846) from Great Britain -•New Mexico & Arizona (1853) Gadsden Purchase from Mexico DESTINY (God wanted Allowed President to put Indians on unsettled lands west of the America to spread INDIAN REMOVAL ACT Mississippi River in exchange for their current land. Some across the continent) (1830) tribes went peacefully but most resisted. In 1838-•1839 Trail of Tears: Cherokees were forced to relocate. 4,000 died on the trip.

MEXICAN AMERICAN Mexico and the U.S. disagreed where Texas border ended. The United States declared war and acquired not only the disputed WAR (1846-•1848) territory but also most of the land stretching from Texas to California.

The United States would continue to stay out of European affairs,

MONROE DOCTRINE but Europe should also avoid further colonization of lands in the Western Hemisphere.

SPANISH-•AMERICAN Short war in which ended with Spain giving the United States

Puerto Rico, and Guam. It also gave Cuba independence. WAR (1898) IMPERIALISM PHILIPPINES The United States purchased the Philippines from Spain for 20 million. People in Philippines did not like this.

Added on to Monroe Doctrine, specifically, advocating a more ROOSEVELT interventionist posture for the United States. “Speak softly and COROLLARY carry a big stick” The U.S. would intervene in Latin American affairs whenever it wanted.

A global conflict with the Triple Entente versus the Central Powers

WORLD WAR I in which about 11 million military members and 7 million civilians died. By the end of the war the German Empire, Russian Empire, (1914-•1918) Austro-•Hungarian Empire and the Ottoman Empire had ceased to exist.

WORLD WAR & LEAGUE OF NATIONS Senate refused to sign treaty that would have made the United ISOLATIONISM States a member of the League of Nations (like United Nations).

ISOLATIONISM The U.S. went back to wanting to stay out of European affairs (last time thus far).

KELLOGG-•BRIAND PACT 65 countries (one being U.S.) agree to settle disputes peacefully (1928)

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PHASE EVENT/POLICY DESCRIPTION

In 1941, U.S. declared war against Japan following the bombing of Pearl Harbor. The U.S. joined the Allies including the Soviet

WORLD WAR II Union, the United Kingdom, France and China. Nazi Germany surrendered in 1945. Japan surrendered after President Truman (1939-•1945) dropped atomic bombs on Hiroshima and Nagasaki. The United WORLD WAR II States emerged as the leader of the free world. The Soviet Union was the other world superpower.

46 nations gathered to form group that focused on maintaining UNITED NATIONS peace while fostering cooperation but committed to using force if necessary to stop aggressor nations.

CONTAINMENT Committed to limiting Soviet Union influence (communism)

TRUMAN DOCTRINE Enacted in 1947, a policy to halt Soviet Union expansion by providing aid to all democratic nations threatened by communism.

DOMINO THEORY If one country becomes communist adjacent countries would COLD WAR follow.

MARSHALL PLAN European Recovery Act. Over 2 years the United States provided $12 billion in economic aid to Europe. Economic aid has become (1948) the cornerstone of American foreign policy.

In 1949, the Soviet Union conducted its first successful detonation MUTUALLY ASSURED of a nuclear bomb. This lead to an arms race. Neither nation DESTRUCTION (MAD) wanted a catastrophe like Hiroshima and Nagasaki. Thus both sides refrained from using such weapons.

KOREAN WAR The United State is allied with South Korea to defend south of the 38th parallel from the communist North Korea. Today 25,000 help (1950-•1953) defend the line dividing North and South.

In 1962, there was standoff between the United States and Soviet

COLD WAR CUBAN MISSILE CRISIS Union when the Soviet Union had installed missiles in Cuba (90 miles from the United States). It resulted in an executive HEATS UP agreement and eventual treaties on disarmament.

North Vietnamese Communists defeated their colonial parent, VIETNAM WAR France. It was a long defensive war characterized by television (1964-•1973) coverage of deaths and public dissent back home. The U.S. eventually pulled out and lost Vietnam to communism.

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PHASE EVENT/POLICY DESCRIPTION

DETENTE A softening of tensions between the U.S. and the Soviet Union.. Cooperation instead of competition.

LIMITED NUCLEAR In 1963, this treaty prohibited nuclear weapon tests under water, in the atmosphere, or in outer space. TEST BAN TREATY

NUCLEAR The United States and Britain agreed not to transfer nuclear NON-•PROLIFERATION technology from one country to another. COLD WAR TREATY COOLS BACK DOWN ANTI-•BALLISTIC It barred the U.S. and the Soviet Union from deploying nationwide MISSILE TREATY defenses against strategic ballistic missiles. (ABM) (1972)

SALT I (Strategic arms It essentially froze the military balance between the two nations. limitation talks I) (1972)

SALT II (Strategic arms The Senate never ratified this treaty. The treaty called for both nations agreeing to ban the manufacture of new weapons limitation talks II) (1979) systems and encourage more weapons reduction.

By 1971, the United States began recognizing China as a country NORMALIZATION instead of Taiwan

NIXON & CHINA It was a “One China” Policy. This refers to keeping a close bond SHANGHAI with the Republic of China (Taiwan) while cooperating with COMMUNIQUE mainland China. (Carter followed up by establishing full diplomatic relations with China)

In 1978, Carter brought Egyptian President Anwar al-•Sadat and

CAMP DAVID ACCORDS Israeli Prime minister Menachem Begin together at Camp David. Israel agreed to withdraw from the Sinai Peninsula.

The United States sided with the shah of Iran (Dictator of Iran).

IRAN HOSTAGE CRISIS Radical revolutionaries overthrew the regime in 1979 and took members of U.S. Embassy hostage. All hostages were returned COLD WAR the day Reagan was sworn into office. UNDER CARTER & STRATEGIC Reagan had harsher rhetoric with Soviet Union. He want to REAGAN DEFENSE INITIATIVE spend more on arms. This multi-•billion dollar plan was envisioned (SDI) (STAR WARS) to intercept Soviet missiles for U.S. targets. It never happened.

A 1980 revolution in Nicaragua left a Marxist regime, the Sandanista government, in control. The Reagan administration IRAN-•CONTRA SCANDAL helped the Contras overthrow this Marxist government. The U.S. secretly sold arms to Iran in exchange for American hostages in Iran. The money from the sale went to the Contra rebels.

PERESTROIKA (1980’s) Economic reconstruction in USSR (Premier Mikhail Gorbachev)

FALL OF THE GLASNOST (1980’s) Understanding or openness between USSR and U.S. SOVIET UNION (USSR) FALL OF BERLIN WALL In 1989, the wall that separated East and West Berlin came down.

PEACE DIVIDEND The payoff of peace after so much investment to win the ideological and political struggle. U.S. can act as humanitarian.

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PHASE EVENT/POLICY DESCRIPTION

OPERATION 45 day war in which the United States forced Iraqi dictator GULF WAR DESERT STORM (1991) Saddam Hussein to withdraw out of Kuwait. (GEORGE H. W. BUSH) POWELL DOCTRINE Have a clear objective, use overwhelming force, get out quickly. Colin Powell (Joint Chiefs of Staff Chairman).

ENLARGEMENT Providing diplomatic and humanitarian engagement in the world in BILL CLINTON & order to increase the zone of democracy. ENLARGEMENT DAYTON ACCORDS A peace treaty between the presidents of Bosnia, Croatia, and Serbia to end the conflict in the Balkans.

September 11th 2001, al Qaeda sought revenge on the United States for its presence in the Middle East and its involvement in the Muslim world. Four commercial planes were hijacked. Two 9/11 planes hit the World Trade Center towers in New York City, another hit the Pentagon in Washington, and the fourth crashed in a field near Shanksville, Pennsylvania after passengers stormed the cockpit. Nearly 3,000 people were killed in these attacks.

Unofficial “War on Terror” declared by George W. Bush. He

WAR ON TERRORISM blamed the Taliban of Afghanistan for allowing al Qaeda to operate there. He also expressed concern about the Axis of Evil (Iran, Iraq and North Korea).

The U.S. military entered Afghanistan (October of 2001) and OPERATION quickly ousted the Taliban regime. Troops continue to look for SEPTEMBER 11 ENDURING enemies and rebuild the country. In December of 2014, U.S. and AND AFTER FREEDOM (2001-•2014) NATO ended their combat mission. They were still some troops training Afghanistan soldiers. (GEORGE W. BUSH) Saddam Hussein would refuse to allow UN weapon inspectors OPERATION into Iraq. Iraq was bound to international treaties that did not IRAQI FREEDOM allow that country to have weapons of mass destruction. Hussein (2003-•2011) did have a weapons program and he did have thousands of his own people killed, but he ended his weapon program in the late 1990’s. But he would not let weapon inspectors in. The United SIDENOTE: States invaded in spring of 2003, took Baghdad within a few in September 2010 it was renamed: months (Mission Accomplished banner). Then Saddam’s troops OPERATION NEW went into hiding in civilian population. In December of 2011, the DAWN (2010-•2011) last U.S. troops left the nation to return home.

It defends the United States and U.S. interests at home and

BUSH DOCTRINE abroad by identifying and destroying the threat before it reaches U.S. borders. It also centers on preemption, nation building, and humanitarian endeavors.

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PHASE EVENT/POLICY DESCRIPTION

He promised emptying Guantanamo Bay (a prison for REDUCING suspected terrorists in Cuba) during the election of 2008. As GUANTANAMO of 2016 it was still open.

KILLING Plan partly designed by CIA and carried out by Navy SEALS, the United States killed Osama Bin Laden in Pakistan on May OSAMA BIN LADEN 2, 2011. BARACK OBAMA The United States has hundreds of drones or UAVS (Unmanned USE OF DRONES Aerial Vehicles). They are either driven by a computer program or a pilot on the ground in the United States.

This probably came into effect after 9/11 during the Bush NATIONAL SECURITY presidency. But there are reports that Obama’s administration AGENCY SPYING uses the program as well. Defenders of the government say that we must use information to protect the United States from PROGRAMS terrorists. Opponents of the program question if it violates our civil liberties.

155 Unit 6: Public Policy

(2006 Q 2) In recent decades, entitlement programs have constituted a substantial portion of the United States federal budget. Social Security is the largest entitlement program in the United States. From the information in the chart above and your knowledge of United States government and politics, perform the following tasks. A. Define entitlement program.

B. What is the primary source of revenue for the Social Security program?

C. Identify one threat to the future of the Social Security program should the trends depicted in the chart below continue.

D. Describe one demographic trend that threatens the future of the Social Security program AND explain how it is responsible for the threat that you identified in (c).

E. Explain how any one of the trends in the chart below would change if the age of eligibility for Social Security were raised.

http://apcentral.collegeboard.com/apc/public/repository/_ap06_gopo_us_sg.pdf http://apcentral.collegeboard.com/apc/members/repository/ap06_usgopo_samples_q2.pdf http://apcentral.collegeboard.com/apc/members/repository/ap06_go-po_us_q&a_final.pdf

(2008 Q 2) A number of factors enable presidents to exert influence over Congress in the area of domestic policy. However, presidents are also limited in their influence over domestic policymaking in Congress.

A. The Constitution grants the president certain enumerated powers. Describe two of these formal powers that enable the president to exert influence over domestic policy.

B. Choose two of the following. Define each term and explain how each limits the president’s ability to influence domestic policymaking in Congress.  mandatory spending  party polarization  lame-duck period http://apcentral.collegeboard.com/apc/public/repository/ap08_gopo_us_sgs.pdf http://apcentral.collegeboard.com/apc/public/repository/ap08_us_gopo_q2.pdf http://apcentral.collegeboard.com/apc/public/repository/ap08_us_gopo_qa.pdf

(2008 Q 3) Fiscal policy and monetary policy are two tools used by the federal government to influence the United States economy. The executive and legislative branches share the responsibility of setting fiscal policy. The Federal Reserve Board has the primary role of setting monetary policy.

A. Define fiscal policy.

B. Describe one significant way the executive branch influences fiscal policy.

C. Describe one significant way the legislative branch influences fiscal policy.

D. Define monetary policy.

E. Explain two reasons why the Federal Reserve Board is given independence in establishing monetary policy. http://apcentral.collegeboard.com/apc/public/repository/ap08_gopo_us_sgs.pdf http://apcentral.collegeboard.com/apc/public/repository/ap08_us_gopo_q3.pdf http://apcentral.collegeboard.com/apc/public/repository/ap08_us_gopo_qa.pdf

(2014 Q 3) Congress and the president both have a role in making foreign policy. Despite recent expansions in presidential power, there are still limits on presidential decision making in foreign policy.

(a) Describe two enumerated powers Congress has in making foreign policy. (b) Describe two expressed powers the president has in making foreign policy. (c) Explain how executive agreements expand the president’s ability to implement foreign policy. (d) Explain how one of the following can limit the president’s ability to implement foreign policy.  Elections  Presidential approval ratings http://media.collegeboard.com/digitalServices/pdf/ap/ap14_united_states_government_and_politics_%20scoring_guidelines.pdf http://media.collegeboard.com/digitalServices/pdf/ap/apcentral/ap14_us_govt_and_politics_q3.pdf http://media.collegeboard.com/digitalServices/pdf/ap/apcentral/ap14-us-gov-pol-qa.pdf

CHAPTER 16

POLITICS AND THE ECONOMY

CHAPTER OVERVIEW

Politics and economics make up the foundation of all governments. Without the combined systems, neither would function. Yet each is an independent system with precise definitions of its own. Understanding these very basic facts is the theme of this chapter.

There are parts of the economy that are clearly dependent on the political health of the nation. The American public is beginning to focus even more attention on both politicians and their management of the nation’s income than in years past.

Examining the budget, debt, income, expenditures, and deficit, the chapter clearly defines the scope of the nation’s budgetary concerns and the solutions attempted, failed, and proposed.

CHAPTER THEMES

· Political and economic systems are the foundations of government operations. · The American economy is stable compared to that of many other nations. · Uncontrollable expenditures programmed into budgets during years past create almost impossible tasks for both budget analysts and elected officials. · The debt burden of the United States is high, but not out of line with earning and production capacity. · Taxes are received from relatively few sources. · Theories of tax methods and their institutionalization vary with both the government and leaders of the government. · Political conflict over how the surplus should be spent.

CHAPTER OUTLINE

I. Politics and Economics A. Economics is defined by Paul Samuelson as “deciding what shall be produced, how, and for whom.” 1. The definition is similar to Laswell’s definition of politics as “who gets what, when, and how,” and the relationship is obvious. a. Both economic and political systems involve collective decisions. b. Both systems rely on government coercion for implementation. 2. A free market economy involves individual decisions. 3. A free market economy relies on voluntary exchange for implementation. B. The United States is predominantly a free market economy.

II. Economic Decision Making (involves both fiscal and monetary policy) A. Both Congress and the president share responsibility for economic policy. 1. The Constitution places all taxing, spending, and borrowing powers in the hands of Congress in Article I (fiscal policy). a. For 150 years, the power to spend was seen as limited to identified purposes. b. The Supreme Court then said Congress may spend on anything that served the general welfare. c. The Constitution does not require a balanced budget. 2. The president’s input into economic policymaking is in presenting the budget of the United States government to Congress. a. The budget sets out the president’s recommendations for spending based on revenue estimates b. Deficits and the need to borrow are projected. B. The president’s recommendations to Congress are influenced by input from three executive offices. 1. The Office of Management and Budget (OMB) is responsible for:

1 Copyright © 2009 Pearson Education, Inc. Publishing as Longman a. Preparing the budget b. Ongoing supervision of budget requests

2. The Department of the Treasury and the secretary of the Treasury are responsible for: a. Estimating revenues b. Drawing up new tax proposals c. Forecasting the amount of revenue new tax proposals might produce d. Managing the national debt e. Selling government bonds to pay debts and pay down the deficit f. Determining interest rates on federal bonds g. Paying interest charges on the national debt—about 7% of all federal spending 3. The Council of Economic Advisers (CEA) is charged with responsibility for: a. Forecasting economic conditions b. Recommending economic policies C. A major player in directing monetary policy in the nation is the Federal Reserve Board. 1. The Fed is mostly independent of the president and Congress, though members are appointed by the president and confirmed by the Senate. a. There are seven board members each appointed for fourteen-year terms. b. A chairman of the board is appointed for four years. c. No member or chair may be removed except for a just cause. d. Since creation of the board in 1913, no member has ever been removed. 2. The job of the Fed is to: a. Regulate the money supply (private borrowing, interest rates) b. Oversee the nation’s Federal Reserve Banks c. Determine reserve requirements of banks d. Monitor the health of the banking industry 3. The Fed’s influence over the economy is based on its ability to a. Raise the reserve requirement of banks, which reduces available money to loan b. Raise discount rates, increasing the cost of borrowing for c. Sell off government bonds, reducing money that reserve banks have to lend d. Expand the money supply in times of recession by doing the opposite of these things

III. Measuring the Performance of the American Economy A. The United States produces over $16 trillion worth of goods and services each year—more than $50,000 worth of output for every person. B. The gross domestic product (GDP) is the primary measure of the economy’s performance. 1. The GDP is the nation’s total production of goods and services in a single year, and may indicate the nation’s economic health. 2. Economists and politicians do not agree on the meanings of GDP indicators. C. The unemployment rate is the percentage of people looking for work in the civilian labor force, or waiting to return to or begin a job. 1. The unemployment rate is measured monthly. 2. Generally unemployment lags behind GDP growth, moving down only after recovery has begun. D. Inflation is a general rise in prices of all goods and services. 1. Inflation a. Erodes savings b. Reduces purchasing power c. Reduces savings incentives 2. At present the inflation rate is fluctuating between 1 and 3 percent.

IV. Government Spending, Deficits, and Debt A. Government spending affects the economy dramatically. 1. All government expenditures combined amount to about 35 percent of the nation’s GDP. 2. The federal government alone spends about 24 percent of the nation’s GDP. B. Uncontrolled expenditures/mandatory spending are those committed to in years past and that cannot be ended without serious political consequences. 1. Entitlement programs account for more than half of all federal spending, including the following groups: a. Social Security, Medicare, Medicaid b. Welfare, food stamps c. Federal employees’ retirement, veterans’ benefits

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2. Indexing of benefits is a costly program that increases benefits payments based on the inflation rate, or tied to the consumer price index; indexed benefits include: a. Social Security, Supplemental Security Income b. Food stamps c. Veterans’ benefits 3. Increasing costs of in-kind benefits programs have risen faster than cash benefit programs. 4. Interest payments on the national debt makes up about 8 percent of total federal spending. 5. Backdoor spending is found in government-guaranteed loans that create obligations, not direct expenditures. a. FHA housing b. Guaranteed student loans c. Veterans’ loans, etc. C. Entitlements, as well as other uncontrolled expenditures, could be cut, but the political consequences are such that no party is even willing to seriously propose such drastic actions. D. Washington policymakers consider spending that is not previously mandated by law to be discretionary. E. Almost 40% of the federal budget is officially designated as discretionary but this includes spending for national defense. F. Nondefense discretionary spending is less than 20% of the federal budget and includes everything from national parks to federal prisons, from highways to air travel. G. The accumulated national debt is over $16 trillion—interest payments equal 8 percent to increase total federal spending. H. Government debt is owed mostly to U.S. banks, financial institutions, and private citizens who buy Treasury bonds. I. In only 4 of the last 40 years (1998-2001) has the federal government not incurred a deficit. J. Congress by law sets a ceiling for the national debt thus forbidding the U.S. Treasury Department form exceeding this dollar limit. K. During the Obama administration, Republican Congresses threatened not to raise the debt ceiling. L. Failure to raise the debt ceiling would result in the U.S. defaulting on its bonds coming due for the first time ever in its history. M. The ability to float such a huge debt depends on confidence in the U.S. government’s ability to pay interest on its debt, that it will pay off the principal of bonds when they come due, and the value of those bonds will not decrease due to inflation. N. As long as banks, governments, and individuals are willing to buy U.S. Treasury bonds, the national debt can be financed forward.

V. The Tax Burden A. Federal revenues are derived from a limited number of resources. 1. Individual income taxes account for the largest percent of the federal government’s income: six rates – 10, 15, 28, 33, and 35 percent. a. Tax expenditures are revenues the government loses because of exemptions, exclusions, deductions, and special treatment provisions in tax laws. b. Tax avoidance and tax evasion are estimated to cost the government about $200 billion a year in revenue 2. Corporate income taxes provide 10 percent of the amount of the federal government’s total income. 3. Social Security taxes provide the second largest source of federal government’s income. 4. Estate and gift taxes begin on estates over $1 million dollars, levying a tax range of 18–45 percent. 5. Excise taxes on liquor, tobacco, gasoline, telephones, air travel, and customs taxes on imports provide about 3 percent of total federal revenues. B. The possibilities of further taxes are often made because Americans’ tax burden is comparatively modest relative to the burdens on other nation’s citizens.

VI. Tax Politics A. The politics of taxation centers on which group should bear the most responsibility for taxes. 1. Progressive taxation requires that higher income groups pay higher percentages of income in taxes. Arguments against such taxes include: a. Progressivity penalizes initiative, enterprise, and risk taking. b. By taking more income from high-income groups, governments take the money that is most likely to go back into business.

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2. Reagan’s program reduced upper income taxes to stimulate the economy. 3. George H. W. Bush’s agreement with the Democratic-controlled Congress to raise taxes cost him the election. 4. Proposals to “soak the rich” are always politically popular. 5. Regressive taxes take a larger portion of income from lower-income earners. 6. Proportional (flat) taxation requires all income groups to pay the same percentage of income in taxes. B. George W. Bush’s tax cuts. 1. A tax cut would revive the economy. 2. The 2003 tax package contained new credits and special treatments (examples — 25 percent tax on dividends, $1,000 child tax credit). 3. Democrats believed cuts would benefit the rich and add to the deficit. C. Upper-income Americans pay a much larger share of federal income tax even though their rates are lower. D. The top half of income earners pay virtually all of the nation’s income tax. E. Capital gains tax taxation—the top marginal rate is 15 percent—raises the question of why working income should be taxed at a higher rate than“investing” income. F. Republicans favor low capital gains tax rates.

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CHAPTER 17

POLITICS AND SOCIAL WELFARE

CHAPTER OVERVIEW

Social welfare triggers more political reactions than almost any other domestic issue. Government is expected to respond, and politicians know their constituents expect support, or their jobs may be at stake.

However, one sector of society, amounting to as much as 20 to 25 percent, has little voice of its own. Those living on or near the poverty line must rely on others to make their cases for assistance. Lobbyists, both those working for purely charitable considerations and those working to maintain their security by serving the poor, regularly speak on behalf of the underclass. Responses vary, with leadership, but since the 1930s an increased amount of federal expenditure has been committed to assist the poor improve their lives, or even in survive. The poor are not limited to any one age nor to any one race, but are found throughout the nation in varying degrees of poverty. Too little has been accomplished in directly addressing the problems, though some argue that too much assistance is, itself, the cause of the poverty.

Another group in American society has a much different set of concerns, but they do have political clout. Senior citizens have been successful in achieving benefits, and they intend to maintain their security even at the cost of severing politicians from their positions — a threat they are capable of implementing given the ever-increasing number of senior citizens.

Finally, addressing health care concerns provokes heated debate in present-day political scenes, especially in a nation of citizens with a growing awareness of the government’s failure to provide access to high quality, cost-efficient health care.

This chapter addresses all of these concerns, detailing the causes and resolutions proposed for each of the major groups associated with social welfare in the United States.

CHAPTER THEMES

· Social welfare programs are divided into the groups of social insurance programs and social welfare programs. · Poverty in America is not defined by age, race, or gender, though the experience is apparent in each of the groups. · Senior citizens may be part of the group defined as poor, but they are not a group without extensive political power. · The quality of health care in America does not equal the quality found in other major, less wealthy democracies. · Health care provision is particularly lacking in access and cost-effectiveness.

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CHAPTER OUTLINE

I. Power and Social Welfare A. Social welfare policy determines who gets what from government. 1. Social welfare activity constitutes the largest and most rapidly growing expenditure in the federal budget. a. More than half of federal outlays go to direct, or transfer payments to individuals. b. Government payments to individuals account for a substantial percent of the GDP. 2. An estimated 45 to 50 million Americans live below the poverty line. B. The poor are not the primary recipients of social welfare spending. 1. Most social welfare spending goes to Social Security and Medicare recipients—the nonpoor. 2. Less than one-third of federal social welfare spending is means-tested spending, that is, distributed on the basis of the recipient’s income 3. The middle class are the major beneficiaries of the social welfare system.

II. Poverty in the United States A. In 2011 the poverty line for a family of four was approximately $22,350 per year. B. Most poverty is not long term, though for some there is persistence of poverty. 1. In the past ten years, 11 to 15 percent of the total population were declared poor in any year. 2. About 6 to 8 percent of the population remains in poverty for over five years. a. Prolonged poverty creates a permanent “underclass” with social ills including teen pregnancy, family instability, drugs, crime, apathy, etc. b. Government programs such as job training, etc., rarely reach the underclass. 3. Poverty is more frequent among female-headed households. a. Births to teenage mothers have actually declined in recent years. b. Illegitimacy has added to the roles of poverty for both single mothers and their children. 4. Inner cities have concentrations of disadvantaged people because: a. Jobs are not available b. Working and middle-income families have left inner cities c. Role models for youth are infrequent d. Poor schools weaken the work ethic e. Crime activities are high f. Family units are disorganized

III. Social Welfare Policy A. Today almost one-third of the U.S. population receives some form of government benefit. 1. Major social welfare programs are either: a. Social insurance b. Public assistance 2. The distinction between social insurance and public assistance is often a political issue, because: a. Social insurance is awarded if contributions toward its receipt were made— Social Security, Medicare, etc. b. Public assistance is defined as welfare, because recipients did not contribute directly to the assistance programs. B. Programs supporting social insurance and public assistance are separately titled. 1. Social insurance programs a. Social Security is the largest of all entitlements, regularly adjusted for cost of living and derived from contributions by workers and employers b. Unemployment compensation temporarily replaces part of wages upon loss of a job. c. Medicare provides health care insurance to the elderly and disabled 2. Public assistance programs a. Supplemental Security Income (SSI) provides monthly cash payments to the needy, those 65 years or older, the blind, and the disabled b. Aid to Families with Dependent Children (AFDC)—now called Temporary Assistance to Needy Families (TANF)—provides monies to states for use in aiding families with needy children c. Food stamps provide low-income households with coupons redeemable for food

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3. Earned income tax credit is a “negative” income tax that helps the poor. 4. Medicaid provides health care to the poor.

IV. Senior Power A. Senior citizens are the most politically powerful age group in the United States. 1. Senior citizen influence is associated with being: a. 28 percent of the voting population b. About one-third of voters on election day — turnout rates that give senior citizens almost twice the power of voters between 18 and 21. c. Well represented in Washington by powerful lobbyists—AARP, etc. d. A group that no elected officials can afford to offend 2. The influence of seniors will continue and even increase as baby boomers reach retirement ages in 2010. By 2030 they will comprise about 20 percent of the population. B. The Social Security Act of 1935 was created as a trust fund to be built up with contributions paid by working people. 1. Plans for building a reserve fund for Social Security began to fail because a. Americans live longer than they did in 1935, thus drawing more benefits b. There were ten workers to each retiree, now the figure is three workers for each retiree. Today the dependency ratio is closer to two workers for each retiree. 2. Cost-of-living adjustments are given annually. Because most workers don’t receive the same protection, COLAs improve seniors’ economic well-being in relation to that of the general population. 3. Affluent citizens receive more than they paid in, and they don’t need the income for survival. C. Social Security is the most expensive program in the federal budget, but it is also the most politically risky to touch. 1. Though lawmakers can reduce entitlements, including Social Security and Medicare, their potential for “de-election” is risked. 2. Suggestions for reductions in seniors’ concerns can prompt extensive outcrys and a carefully listening public—each of whom either is a senior or will become one in the near future. D. Can Social Security be “saved”? The population is aging and there will be increases in the dependency ratio. One idea: private investment accounts.

V. Politics and Welfare Reform A. The clash of values in welfare policy is a regular feature of heated political debate. 1. Americans worry that welfare encourages dependency. 2. Americans also believe government should aid those unable to care for themselves. B. A political consensus grew over the years that long-term social dependency had to be addressed in welfare policy. C. In the mid 1990’s the Republican-controlled Congress sponsored a welfare reform bill to end Aid to Families with Dependent Children (AFDC) D. The Republicans devised a “devolution” of responsibility to the states federal block grants and the program became known as Temporary Assistance to Needy Families (TANF) E. Under this program, lump-sum allocations are given to states for cash welfare payments, with benefits and eligibility requirements decided by the states. F. Furthermore, conservatives in Congress imposed tough-minded “strings” to state aid 1. 2 year limit on continuing cash benefits 2. 5 year lifetime limit 3. “Family cap” that would deny additional cash benefits to women already on welfare who bear more children 4. Denial of cash welfare to unwed parents under 18 years of age unless they live with an adult and attend school

VI. Health Care in America A. The United States ranks well below other advanced democracies in measures of the health of its people. 1. The leading causes of death today are associated with factors over which doctors and hospitals have no direct control. 2. Better health is likely to be found in better personal habits and lifestyle, rather than in medical care. B. About 85 percent of all Americans are covered by government or private health insurance.

3 Copyright © 2009 Pearson Education, Inc. Publishing as Longman 1. Government covers about 27 percent of the nation’s population through: a. Medicare b. Medicaid c. Military and veteran care d. Other programs 2. Private insurance accounts for about 58 percent of health costs. 3. Forty-five million Americans have no health insurance. C. About 15 percent of the population does not have medical insurance, including: 1. Workers and dependents with employers who do not offer insurance 2. Unemployed people not eligible for Medicare or Medicaid D. Even those with coverage may not have sufficient coverage to avoid personal financial disasters if major costs develop. 1. Deductibles exist in all programs, and can add up with low income or with high medical expenses. 2. Many doctors do not accept Medicare as full payment. 3. Many programs do not cover costs for eyeglasses, hearing aids, dental work, etc. 4. Long-term care is seriously short or underfunded. 5. Nursing home care insurance is too costly for many. 6. Medicare has tried to control rising costs E. Costs of medical care have spiraled for many reasons: 1. Advances in medical technology 2. Malpractice insurance 3. Multiple consultation requirements 4. Unnecessary expansion of hospital facilities F. Managed care controversies 1. Development of discounts with doctors, etc., in preferred provider organizations (PPOs) 2. Managed care units 3. Health maintenance organizations (HMOs) — Over 30 percent of Americans are enrolled G. Medicare is a two-part program that helps elderly and disabled persons pay health costs. 1. Part A is hospital insurance. 2. Part B is optional supplemental medical insurance that pays 80 percent of covered doctor and outpatient charges. H. The federal government provides funds under Medicaid to enable states to provide medical services for low-income persons. I. Unlike Medicare, Medicaid is a welfare program designed for needy persons; no prior contributions are required and Medicaid recipients are typically welfare recipients also. J. Medicaid is the costliest of all public assistance programs with states paying about 45 percent of Medicaid costs, with the federal government paying the remainder. K. Under the State Children’s Health Insurance Program (SCHIP), the federal government provides grants to the states to extend health insurance to children who would not otherwise qualify for Medicaid.

VII. Obama’s Health Care Transformation A. In 2010, President Obama and a Democratic-controlled Congress acted to transform health care in America with the comprehensive Patient Protection and Affordable Care Act of 2010. B. National health care reform had been attempted unsuccessfully by past presidents, including FDR, Truman, and Clinton. C. There were many provisions in the Affordable Care Act of 2010: 1. Individual mandate a. Every American required to purchase health insurance b. If not they will get a tax penalty up to 2.5% of their household income c. IRS enforces this mandate 2. Employer mandate a. Employers with 50 or more workers are obliged to provide health insurance to their employees b. Companies that fail to do so will face substantial fines c. Small businesses are offered tax credits for offering their employees health insurance 3. Medicaid expansion 4. Health insurance exchanges 5. Taxes D. Congress rejected President Obama’s proposed “public option” a government-run nonprofit health insurance agency that would compete with private insurers E. The Congressional Budget Office estimated the cost of health care reform at nearly $1 trillion. 4 Copyright © 2009 Pearson Education, Inc. Publishing as Longman

VIII. Challenges to “Obamacare” A. Republicans in Congress were unanimously opposed to the Patient Protection and Affordable Care Act of 2010 B. They promised to repeal it, if possible, of if not, to obstruct its implementation C. Since its passage in 2010, multiple court challenges to Obamacare have been heard, however none have succeeded yet in overturning the law

5 Copyright © 2009 Pearson Education, Inc. Publishing as Longman CHAPTER 18

POLITICS AND NATIONAL SECURITY

CHAPTER OVERVIEW

The struggle for power among nations has consumed the energies and economic resources of nations since their existence. Though such struggles may take the form of military actions, diplomatic activities, and the most intense maneuvering skills of political leaders, it is the people of the nation who are threatened when national security is at stake in quests for power.

How is power among nations distributed, used, and abused? This chapter summarizes the theories of power struggles and how they have failed and succeeded.

A historical perspective moves the reader through each phase of the twentieth century’s wars or military actions, and assesses how they have fit into the power struggle among nations. From World War I to the present, when the struggle is to learn to live with the consequences of peace, the security of the United States has been threatened. We, as citizens, have faced war, military action, “face-downs,” and now the fragility of peace.

CHAPTER THEMES

· The struggle for power is global. · Involvement in acquiring power from another nation as the superior force in the world is costly in time, manpower, and money. · There have been many tools used in attempts to maintain peace and end war. · The United States and the Soviet Union confronted each other for almost a half-century in a nonshooting Cold War. · Confrontation without war is almost as costly, in dollars and nerves, as war. · With nerves of steel, American presidents stood down the threats of Soviet leaders. · The Cold War ended with the dissolution of the Soviet Union. · Threats to national security have still not been eliminated; for the moment, their source is from a variety of nations. · Consequences of peace are today unknown.

CHAPTER OUTLINE

I. Power among Nations A. With the end of World War II, attempts to maintain global peace resulted in creation of the United Nations. 1. Collective security ideas guided creation of the charter of the United Nations, which provides for: a. A Security Council composed of member nations: five permanent members, with power to veto any action by the Security Council b. A General Assembly composed of all member nations, each holding a single vote c. A Secretariat headed by a secretary-general headquartered in New York d. Special bodies to handle specialized affairs 2. During the Cold War—after World War II until the early 1970s—the UN was ineffective in dealing with U.S. and USSR conflicts.

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3. Regional security grew out of the general failures of the UN to attain global stability. So regional security developed, with nations aligning under mutual protection pacts/treaties. a. The North Atlantic Treaty Organization (NATO) was composed of fifteen Western nations pledging to protect one another. b. NATO has expanded to include Poland, Hungary, and the Czech Republic. In 2004, Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia, and Slovenia were admitted. c. NATO forces have been sent to Bosnia and Kosovo. d. The Warsaw Pact was an alignment of Eastern European satellite nations pledging to secure one another from threats of NATO nations. 4. In 1989 the Warsaw Pact disintegrated with the collapse of communism in Eastern Europe. a. The Berlin Wall fell, and Germany was reunified in 1990. b. Communism was ousted from power in Moscow, and the USSR collapsed in 1991. 5. With the Cold War over, the United Nations is viewed as a potential global organization for ordering relations among nations. a. The UN has displayed cooperation in dealing with regional conflicts. b. The UN has also become a costly bureaucracy.

II. The Legacy of the Cold War A. The United States and the Soviet Union were engaged in an extended struggle for world dominance for forty years. 1. After World War II, during which the U.S. and USSR were allies, the U.S. reduced its military forces; the USSR increased its Red Army to maintain communism in Eastern Europe. a. Germany was divided between east and west. b. Churchill identified an iron curtain between the allies of the two superpowers. c. USSR forces threatened expansion into Greece and Turkey. 2. In response to USSR expansion, President Truman announced a policy of containment—advocated by scholar George F. Kennan—of USSR expansion. a. Implementation of containment introduced the Marshall Plan, named after Secretary of State George Marshall. b. The Marshall Plan provided financial aid to help build infrastructure in nations likely to be takeover targets of the USSR. B. A series of military actions between the two superpowers, and their allies, began in the 1950s and continued through the 1960s. 1. The Korean War began when North Korean armies invaded South Korea. a. The USSR supported the north; the U.S., the south. b. The UN called for member nations to repel the USSR-sponsored advances into the south. c. The Chinese Army entered the military fray, and U.S. troops were driven back. d. The U.S. military leader, General Douglas MacArthur, wanted to drive forces to China; Truman wanted a limited war. Truman fired MacArthur, and the war dragged on in a stalemate. 2. Eisenhower became president in 1952 and sought to end the war quickly. a. He threatened to use nuclear weapons in the conflict. b. The UN intervened, settling the war by drawing the line on the same parallel over which the conflict began—after two years and a stalemate that cost 38,000 American lives. 3. The most serious nuclear threat during the Cold War was the Cuban missle crisis. a. In 1962, U.S. intelligence photos showed installation of missiles in Cuba. b. Kennedy blockaded Cuba, telling Khrushchev he would blockade USSR ships. c. Khrushchev ordered the missiles withdrawn from Cuba. C. U.S. involvement in Vietnam grew out of the containment policy. 1. Following the defeat of French forces by Chinese leader Ho Chi Minh, and failure to intervene in 1954, the nation of Vietnam was divided into north and south portions. a. North Vietnam was supported by communist nations. b. South Vietnam was U.S. backed. c. Kennedy sent troops to train the South Vietnamese armies in the early 1960s. d. Congress supported American entry into the civil war in Vietnam after the Gulf of Tonkin resolution. e. Following Kennedy’s death, Johnson increased the number of U.S. troops in Vietnam.

2 Copyright © 2009 Pearson Education, Inc. Publishing as Longman f. With battles continuing and no clear winners, North Vietnam’s troops attacked the U.S. embassy in Saigon in 1968. g. Johnson decided not to run for president again, and did not provide further troops as requested by General Westmoreland. D. In 1968, Nixon was elected president, largely on his promise to resolve the Vietnam conflict. 1. On the advice of his secretary of state, Kissinger, Nixon entered into negotiations toward finding a peaceful resolution to the conflict. 2. The process initiated a policy of force and diplomacy. a. In 1972, the U.S. bombed Hanoi in North Vietnam. b. Peace terms were later worked out, based on proposals by Kissinger. c. Each nation would remain as it was. d. American troops withdrew. e. South Vietnam was overrun by North Vietnamese armies and the nation became one under communist rule. E. President Gerald Ford opted against further U.S. involvement in Vietnam and sent no troops. F. America’s failure in Vietnam had far-reaching international and national consequences. 1. The U.S. military lost more than 47,000 soldiers. 2. In Cambodia, after Vietnam was reunited, more than two million people were murdered. 3. More than half a million boat people fled Vietnam to other nations of the world. 4. The U.S. took in more than 250,000 Vietnamese refugees. 5. America became more isolationist in its foreign policy. 6. The USSR expanded its political and military presence throughout the world. 7. Following the American decline in military strength, President Carter sought to rejuvenate the armed forces and power in 1979. a. NATO advocated a new defense buildup. b. Reagan took office in 1981, after the buildup had already begun. c. Reagan’s military buildup pressure continued through 1985, as he sought negotiations with USSR leaders. d. Reagan advocated a military show of power equal to the USSR’s as a means of aiding negotiations. G. In 1985 Gorbachev, new premier of the USSR, announced reductions in the nation’s military. 1. The U.S. and USSR reached an agreement, in treaties, to reduce nuclear buildups. 2. In 1988 Gorbachev announced that USSR troops would no longer be used to keep power in Eastern European nations. 3. Eastern nations quickly threw off the suppressive communists, and became independent or, in the case of East and West Germany, reunited. H. By 1991, all fifteen republics of the USSR had declared their independence, and the USSR ceased to exist. 1. There was a lengthy struggle for power between Gorbachev and Yeltsin for leadership. 2. Yeltsin became president of the new Russian Republic, winning election again in 1996. 3. Unrest continues in all of the fifteen republics, struggling to resolve economic, political, and social changes that have suddenly taken place. I. Vladimir Putin succeeded Yeltsin as the Russian president in 2000. Problems with the economy, Chechnya, and democracy continue today in Russia.

III. Nuclear Threats A. Widespread and massive nuclear weaponry made the Cold War more dangerous than any other confrontation in human history. B. The existence of such devastating capabilities may have been the reason for nonconfrontation between the two superpowers—U.S. and USSR—as many other conflicts took place throughout the world. 1. To maintain peace, the U.S. relied on a policy of deterrence. a. Deterrence is based on the premise of a second-strike capability. b. Second-strike capability means that the U.S. would be able to retaliate effectively against a USSR first strike and inflict serious damage to the offensive nation. c. Deterrence is a psychological defense. 2. By the early 1970s, there was a balance of nuclear power between the U.S. and the USSR. a. Neither side could be confident of defeating the other because of the balance of weapons. b. World populations were held hostage to a “mutual assured destruction” (MAD) policy. C. A series of negotiations, prompted by Nixon and Kissinger, resulted in several nuclear arms reductions treaties and agreements between 1972 and 1993.

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1. SALT I resulted in 1972 from Kissinger’s negotiations over nuclear arms reductions between the U.S. and USSR. a. Limits were placed on the numbers of antiballistic missiles (ABMs). b. The U.S. and USSR missile numbers were frozen at the total number of offensive missiles, and each side had to dismantle an equal number of older missiles. 2. SALT II was signed in 1979 after years of negotiations for renewal of the first SALT. a. Limits were again established. b. The U.S. Senate never signed the treaty, as Carter withdrew it when the USSR invaded Afghanistan. c. Both nations agreed to abide by SALT II, as if it had been signed by the Senate. D. Reagan’s administration began a new series of negotiations designed around three principles of arms control. 1. Reductions of nuclear capacity was critical to further discussion. 2. Equality between the two nations had to be reached in nuclear and weapon capabilities. 3. On-site verification of compliance to all negotiated agreements was to be a part of each agreement. E. A series of agreements and treaties were again initiated and completed between 1987 and 1993. 1. With the START I agreement of 1991, Bush and Gorbachev reduced the total number of nuclear delivery systems (missiles). 2. START II of 1993 was completed after Gorbachev was replaced by Yeltsin. He and Bush agreed to eliminate all multi-warheaded, land-based missiles (MIRVs) by 2003. 3. The Treaty of Moscow, together with the START treaties, will reduce the nuclear arsenals of the U.S. and Russia by over 80 percent from Cold War levels. F. Today, there is a real threat of nuclear terrorism as countries like Iran and North Korea are likely to find access to nuclear weapons; the U.S. still pursues a BMD system.

IV. The War on Terrorism A. Global terrorism has evolved over the years into highly sophisticated networks operating in many countries. 1. Attacks date back thirty years, but the death and destruction has dramatically increased. a. Prior to 9/11, most Americans thought of terrorism as a foreign issue. b. Terrorist attacks on U.S. soil were rare. c. The Oklahoma City bombing was an isolated event of domestic terrorism. 2. Al Qaeda is now engaged in global terrorism a. Osama bin Laden leads this loose-knit network b. Their political grievances include American support of Israel. B. On the evening of September 11, President Bush outlined a broad “response to terrorism.” 1. The war on terrorism would be a long and sustained effort. 2. New restrictions on the lives of Americans would be in place. 3. Airport security measures would be instituted. 4. The Department of Homeland Secutiry was created. a. Designed to coordinate federal, state, and local law enforcement agencies in dealing with acts of terror. C. The military phase of the war on terrorism began October 7, 2001, when U.S. Air Force and Navy aircraft began attacks on known Al Qaeda bases in Afghanistan. 1. Operation “Enduring Freedom”included a coalition of troops. a. United States b. Britian c. Canada d. The Northern Alliance (local tribal groups) 2. Other nations allowed forces to base operations on their land. a. Pakistan b. Saudi Arabia c. Uzbekistan 3. Kabul was occupied by anti-Taliban forces on November 13, 2001. 4. By April 2002, Al Qaeda and Taliban forces were either destroyed or dispersed into scattered groups in the Afghan mountains. 5. Osama bin Laden, however, escaped capture until being killed by U.S. special forces in 2011. D. The war on terror requires the United States to reshape its military planning to confront unconventional (or asymmetrical) wars-lightly armed, irregular enemy forces engaging in tactics such as ambushes, hidden explosives, suicide bombings, and hostage takings.

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V. The War in Iraq A. Americans demand quick victory in war. B. Following the capture of Baghdad by U.S. forces, the post-war insurgency apparently surprised Secretary of Defense Donald Rumsfeld. C. Public support for continued conflict in light of mounting casualties waned despite assurances that an abrupt U.S. withdrawal would encourage terrorists around the world. D. In the presidential campaign of 2008, Barack Obama pledged to end the war in Iraq “responsibly.” E. U.S. forces officially ceased combat missions in Iraq in August 2010 F. The American public remains unconvinced that military intervention in Iraq was worth the heavy price paid: over 4,500 American service members killed and 35,000 wounded. G. Violence continues in Iraq, the Islamic State has emerged as a force to be dealth with, and the future of democracy in Iraq remains in doubt.

VI. The War in Afghanistan A. The Taliban regime in Afghanistan provided al-Qaeda with safe haven and on September 11, 2001, al-Qaeda executed the attacks on the World Trade Center and the Pentagon. B. On October 7, 2001, U.S. Air Force and Navy aircraft began attacks on al-Qaeda bases in Afghanistan C. U.S. Special Operations Forces aided the anti-Taliban fighters in that country, and Kabul, the capital, fell to these forces on November 13, 2001. D. The United States and NATO created an International Security Assistance Force (ISAF) in 2002 to provide for a legitimate government in Afghanistan leading to the installation of Hamid Karzai as leader of Afghanistan E. The Karzai government exercises less than full control over Afghanistan’s various tribal chiefs (or “warlords”), who exercise substantial independent power throughout the country. F. Afghanistan became the Obama administration’s principal military effort G. As Obama finishes his presidency he is struggling to meet his goal of having all American troops out of Afghanistan by the end of his term in 2017. H. The American people appear to be divided over the wisdom of continuing military operations in Afghanistan I. Majorities oppose the war itself and oppose increasing American troop levels

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