the federal courts and economic policymaking
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Break down of the Federal CourtTRANSCRIPT
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The Federal Courts and Economic PolicymakingChapters 15-16
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Chapter 15 The Federal Courts
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+Judicial Policymaking
Courts can apply policy-making power of the courts as they comply with the Constitution through Interpretation Application
Judicial ReviewPower of the judicial branch to declare
unconstitutional the actions of the other two branches or their individual units
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+Judicial Policymaking
The Role of Courts and Judges There is controversy over the leeway that courts should have in exercising
their rights of constitutional interpretation Strict construction
holds that the document should be interpreted narrowly
Judicial restraint Loose construction
holds that the Constitution can be interpreted broadly
Judicial activism
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+Political History of the Supreme Court
Chief Justice John Marshall Marbury v. Madison (1803) McCulloch v. Maryland (1819)
Chief Justice Roger Taney Dred Scott v. Sandford (1857) Plessy v. Ferguson (1896)
Chief Justice Earl Warren Brown v. Board of Education (1954)
Chief Justice Warren Burger Roe v. Wade (1973)
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+The Lower Federal Courts
District Courts - Trial court level95 U.S. district courts with judges appointed by
the president and confirmed by the Senate Original jurisdiction
Includes both civil and criminal cases Criminal case
Legal dispute dealing with an alleged violation of a penal law
Civil case
Conflict between two parties
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+The Lower Federal Courts
U.S. Circuit Courts of Appeal Primary intermediate-level appellate courts 13 courts of appeal Courts of appeal have only appellate
jurisdictionHearing cases in panels of
three judges White House generally takes more care with
nominations to the courts of appeal than it does with district court selections.
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+The U.S. Supreme Court
Highest court in the country Number of justices at the discretion of Congress A chief justice and 8 associate justicesJurisdiction
Constitution sets Court’s original jurisdictionStatutory law sets Court’s appellate jurisdiction
Selection of justices Presidents look for appointees who share their
political philosophyMust be confirmed by Senate
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+The U.S. Supreme Court
Deciding to decide Makes policy from the cases that the justices themselves choose to
hear and decide Test Cases Rule of Four
Deciding the case Supreme Court deals with cases it chooses to hear:
1. Without oral arguments: per curiam opinion.2. Full treatment: one justice assigned to prepare the majority
opinion, other justices may write concurring or dissenting
opinions.
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+The U.S. Supreme Court
Implementation Higher courts develop policy Lower courts interpret the rulings Government agencies implement rulings
Impact Greatest impact is when the Court issues a clear decision
in a well-publicized case and its position enjoys strong support from other branches and units of government, interest groups, and public opinion
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+Power, Politics, and the Courts
How much influence do federal courts have in the policymaking process?
How responsive are they to public concerns?
Restrictions on the federal courts Both the Constitution and the law check judicial power. Other branches can change the law or the Constitution. The Court depends on the cooperation and compliance of other units of
government and private parties to implement their decisions.
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+Break!
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Chapter 16Economic
Policymaking
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+The Goals of Economic Policy
Economic policy reflects the priorities of policymakers. Often disagreement over economic policy goals
Fund government servicesEncourage/discourage
private-sector activityRedistribute incomePromote economic growth
with stable prices
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+Revenues: How the Government Raises Money
The federal government has many sources of revenue: Individual Income Taxes Estate Taxes Payroll Taxes
(Social Security & Medicare) Corporate Income Taxes Excise Taxes
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+Tax Issues and Proposed Reforms
Tax Burden and Tax Fairness Individual income tax is progressive. Payroll taxes are regressive.
State and local taxes tend to be regressive.
Tax Reform
Flat Tax Value Added Tax (VAT)National Sales Tax
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+Deficits and the Debt
Budget deficit = amount of money by which budget expenditures exceed budget receipts
Budget surplus = sum by which budget receipts exceed annual expenditures
Budget receipts equal budget expenditures = balanced budget
National debt = accumulated indebtedness of government
2010: federal budget receipts were $2.2 trillion compared with outlays of $3.5 trillion, for a deficit of $1.3 trillion. National debt grew by $1.3 trillion
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+Expenditures: How the Government Spends Money
Healthcare
Medicare (45 million people) and Medicaid (58 million people)
Social SecurityCreated in 1935 to supplement retirement
Expanded to include dependents as well as the disabled
Currently: a tax on workers to provide benefits to elderly and disabled
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National Defense3rd largest category of federal expenditures Includes defense dept. along with parts of other
agencies
Income Securitywelfare programs (with the exception of Medicaid)
Earned Income Tax Credit (EITC)Food StampsSupplemental Security Income (SSI)Temporary Assistance for Needy Families (TANF)
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Expenditures: How the Government Spends Money
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+Fiscal Policymaking
Ground Rules for Budgeting Budget is initiated by executive branch a year and a half before
the start of the fiscal year. Mandatory spending = expenditures mandated by law including
entitlements, contractual obligations, and interest on the debt. Discretionary spending = expenditures not mandated by law
including spending for education, defense, foreign aid, highway construction.
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+Fiscal Policymaking
The Budget Process November: 11 months before the beginning of the fiscal
year, budget process starts in Congress. March: OMB sends spending level guidelines to executive
branch agencies, followed by negotiation.s January: President presents budget to Congress
Divided according to taxing and spending measures and referred to appropriate committees.
The spending side of the budget requires the enactment of both authorization and appropriation bills.
In studying the budgetary process, political scientists use the incremental model of budgeting.
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+Monetary Policymaking and the Role of the Fed
Federal Reserve Board the “Fed” Independent regulatory commission, sets
monetary policy. Benchmark interest rates are the Fed’s main
lever to adjust the level of aggregate demand in the economy.
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+Making Economic Policy
Important elements of the environment for economic policymaking are
public opinionthe strength of the economy party control of the executive and
legislative branches of government. Agenda Setting Policy Formulation, Adoption, and Legitimation Policy Implementation, Evaluation, and Change
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