Exam 16: Political Economy

Illustrate conservative and liberal definitions of "poverty." How do these understandings focus the way each party views the poor? And how do those understandings influence the creation of social welfare programs?

Conservatives argue that high taxes encourage effort and investment.

According to the U.S.Labor Department, what determines the "poverty line"?

Which U.S.president is responsible for implementing Food Stamps as a nationwide program?

Conservatives complain that the poverty line is set too low; it can take two to three times that amount to survive in big cities.

Identify the major critique of workfare programs.

Analyze the American trend against creating new entitlement programs.

Most liberals feel that the poverty line is _________.

After World War II, conservative economists such as Friedrich Hayek and Milton Friedman sidelined Keynesianism with a __________ theory based on the original supply and demand of Adam Smith.

Some analysts call the federal __________ the best welfare program because it encourages people to work their way out of poverty.

The __________ agreement priced an ounce of gold at $35 and fixed other currencies in relation to the dollar.

Many of today's American welfare programs began during the 1960s, under Kennedy and Johnson.

John McCain lost the 2008 presidential race in part because voters blamed Republicans of the previous administration for __________.

What event is largely considered responsible for deterring Johnson's War on Poverty?

Critique President Carter's attempts at welfare reform.

Theoretically, what are the consequences if the government assumes the burden of bad loans?

During the 1970s critics developed this new term to describe inflation with stagnant economic growth.

What was the poverty line in 2012?

Explain the primary source of recent cuts to the number and pay of American blue-collar manufacturing jobs.

Examine the fundamental differences between Smithian and Marxist economic theories.What is the government's role in each? Where do you see each playing out in the American economy, and how does such implementation benefit or harm our economy? Provide examples.