Do Now 12/17/10

• PS: Moratorium n. : a postponement of activity

• E.G.: From a Latin word meaning “delay”, moratorium may refer to any policy of deferral. For instance, a government may require debt collectors to observe a moratorium on activity for the victims of a natural disaster to give the victims time to financially reestablish themselves.

• E.G. : There was a moratorium on having to wear school uniforms during the fourth making period.

• E.G.: The federal government decided on a one week moratorium from having to pay any payroll and income taxes in order to encourage consumer spending.

• SAT: Dilate v. : to make larger; to become larger; to speak or write at length

• E.G.: Before examining my eyes, the doctor gave me some eyedrops that dilated my pupils.

• E.G.: The pores in the skin dilate in hot weather to cool the skin.

• E.G.: The evening speakers dilated on his subject for so long that most of the people in the audience fell asleep.

Quote of the DayWe have gone forth from our shores repeatedly over the last hundred years and we’ve done this as recently as the last year in Afghanistan and put wonderful young men and women at risk, many of whom have lost their lives, and we have asked for nothing except enough ground to bury them in. -- Colin Powell

Current Events12/20/10• A massive bipartisan tax package preventing a

big New Year's Day tax hike for millions of Americans is on its way to President Barack Obama for his signature.

• The measure would extend tax cuts for families at every income level, renew jobless benefits for the long-term unemployed and enact a new one-year cut in Social Security taxes that would benefit nearly every worker who earns a wage.

• In a remarkable show of bipartisanship, the House gave final approval to the measure just before midnight Thursday, overcoming an attempt by rebellious Democrats who wanted to impose a higher estate tax than the one Obama agreed to. The vote was 277-148, with each party contributing an almost identical number of votes in favor (the Democrats, 139 and the Republicans, 138).

• In a rare reach across party lines, Obama negotiated the $858 billion package with Senate Republicans. The White House then spent the past 10 days persuading congressional Democrats to go along, providing a possible blueprint for the next two years, when Republicans will control the House and hold more seats in the Senate.

• The extended tax cuts include lower rates for the rich, the middle class and the working poor, a $1,000-per-child tax credit, tax breaks for college students and lower taxes on capital gains and dividends. The bill also extends through 2011, a series of business tax breaks designed to encourage investment that expired at the end of 2009.

• Workers' Social Security taxes would be cut by nearly a third, going from 6.2 percent to 4.2 percent, for 2011. A worker making $50,000 in wages would save $1,000; one making $100,000 would save $2,000.

Q: 1. In your opinion, was the vote in favor of the bipartisan tax package the right thing to do? Explain your answer.

Political Cartoon of the Day12/17/10

• Questions:• 1. What is the cartoonist trying to

communicate in his cartoon? • 2. Do you agree or disagree with

the cartoonist views? Why or why not?

• 3. Do you believe the Wikileaks founder and others who are involved with the release of sensitive diplomatic cables should be tried for treason?

• 4. Can Wikileaks founder use free speech as a defense? Explain.

Current Event12/17/10

• Visa Inc. and MasterCard Inc. may face permanent damage to the fastest-growing part of their business after the Federal Reserve proposed rules that could cut debit-card transaction fees by 90 percent. Yesterday the Feds proposed capping so-called interchange fees at 12 cents each. Currently, the networks charge merchants an average of 1 percent of the purchase price, regardless of cost, and pass that money along to card-issuing banks. The change, if approved by the Fed after a public comment period, would wipe out most of an estimated $15 billion in annual revenue for U.S. lenders that issue Visa and MasterCard debit cards, including Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co.

Managing the Economy• The Federal government has the

responsibility of taking on the role of the economy’s chief manager.

• The government also checks on the health of the economy. The government tracks the number of people unemployment, new jobs created, and the amount of money received by exports.

• Therefore, the government needs to measure the economy’s health before it can decide on how to maintain and improve it.

• It is the duty of the government to keep an eye on inflation.

• Inflation: is a general rise in the price level of goods and services.

• When inflation occurs in an economy, money loses its buying power.

• Keep in mind: When a person’s income remains the same while prices go up, individuals can afford to buy less and less.

• The rate of inflation is given as an annual percentage. If goods cost $100, an annual inflation rate of 5% will increase the price of these goods to $105 over the course of a year.

• Therefore, as prices go up, people demand higher pay to keep up with inflation.

• In addition, businesses spend more on labor costs, which leads to price increases in goods and services in order to secure a profit.

Managing the Economy• In order to combat inflation, the

federal government uses monetary policies to keep inflation under control.

• As a result, when the inflation rate is high , the Federal Reserves raises interest rates.

• Truly a major goal of the national government is to assist in helping the economy grow.

• The government measures the economy’s growth by calculating the gross domestic product. GDP is the total dollar value of all final goods and services produced within the country in a year.

• Final goods are those that are complete and ready for sale. Goods used to make the final goods are not counted in the GDP because their values are included in the price of the final product.

• Exit Ticket:• 1. The Federal government has the

responsibility of taking on the role of the economy’s ______________ .

• 2. The government tracks the number of __________________, ________________, and the amount of ______________________.

• 3. It is the duty of the government to keep an eye on ______________.

• 4. ___________ is a general rise in the price level of goods and services.

• 5. When inflation occurs in an economy, _________________.

• 6. When a person income remains the same while prices go up, __________________________.

• 7. The rate of inflation is given as an ______________________.

Managing The Economy • The most important function of the

Feds is to regulate the supply of money(both in circulation and bank deposits) and the price of money(in the form of interest rates).

• Securities are any form of ownership that can be easily traded on a secondary market, such as stocks and bonds. It also includes their derivatives, such as futures contracts, options, or mutual funds.

• Government Securities: Securities issued by a government to raise the funds necessary to pay for its expenses.

• Keep in mind that a rise in GDP, without raising prices, generally means that the economy is growing. A falling GDP means that the economy needs help, such as increased federal government spending.

• An important agency to consider with regards to the economy is the board of governors of the Federal Reserve System (the “Fed”). The Feds consist of seven members who are appointed by the president. The Federal Reserve System has been in place since 1913. The Chair serves for four years, and in theory as well as practice the Fed is independent of both the president and Congress.

The Tools by Which the Fed Implements Its Monetary Policy

• 1. Buying and selling of government securities: When the Feds buys securities, it in effect puts more money into circulation and takes securities out of circulation. With more money around, interest rates tend to drop, and more money is borrowed and spent. When the Feds sell government securities, it in effect takes money out of circulation, causing interest rates to rise making borrowing more difficult.

• 2. Regulating the amount of money that a member bank must keep in hand as reserves to back up the customer deposits it is holding.

• 3. Changing the interest charged banks that want to borrow money from the Federal Reserve System.

• Banks borrow from the Fed to cover short-term needs.

• Role of Government in an economy:• The government feels that it is their

responsibility to protect the rights of consumers by establishing policies and agencies that provide certain regulations. The government can also decide to pursue policies of deregulation if it feels that services and goods could be better handled by private companies.

• Examples of agencies and policies that provide regulations are:

• Food and Drug Administration (FDA): is responsible protecting consumers from food that could otherwise be harmful. Food packaging labels provide important information to the consumer about nutrition and ingredients in products. The government regulates how food is labeled, packaged, and handled, and even the level of quality of the food.

Role of Government in an economy

• Environmental Protection Agency (EPA): The EPA works to pass laws that protect the environment. Some examples include the Clean Air Act, the Clean Water Act, and the Resource Conservation and Recovery Act. Property Rights: The U.S. government provides protection and regulation for property rights. Property rights apply to all economic goods, and protect the maker's rights to earn income from the good, as well as control the use and transfer of the good to others. For example, music is protected property of the artists and producers who create it. With digital technology, artists and companies must create new safeguards to prevent illegal copying of music files so they can still benefit from the profits.

• Federal Aviation Administration (FAA): The FAA maintains standards for airplane safety, issues pilot licenses, and operates the air traffic control system.

• Federal Trade Commission (FTC): The Federal Trade Commission was created in 1914 to better regulate businesses. The FTC works to stop and prevent anti-competitive business practices. The FTC also reviews mergers and acquisitions and prohibits those that the FTC feels will create a monopoly and reduce competition.

• The Federal Communications Commission (FCC): regulates media communications throughout the United States. The FCC monitors all radio, television, wire, satellite, and cable communications.

• The Federal Deposit Insurance Commission (FDIC): was created in 1933 to ensure that banks do not fail during an economic crisis. Essentially, the FDIC guarantees funds on deposits to member banks.

Role of Government: Terms for International Affairs

• A trade barrier is anything that limits trade between countries.

• Free trade takes place when countries agree to remove trade barriers in order to promote the exchange of goods between the countries.

• Tariffs: Tariffs are taxes on foreign goods. By making foreign goods more expensive, tariffs allow local sellers to be more competitive. These taxes, however, make trading between nations more difficult. Some tariffs are imposed by a country to help developing industries become more competitive with foreign industries. Although industries benefit from tariffs, citizens often bear the costs of tariff policies.

• Quotas: Quotas are limits that a nation places on goods it imports from other nations. Similar to tariffs, they are meant to help local sellers in a nation sell more goods.

• Exchange controls: Exchange controls limit the use of foreign currency in a nation. They are meant to protect the value of the nation's own currency. These exchange controls make it more difficult for countries to trade together.

• Embargoes and Boycotts: Embargoes and boycotts occur when one nation stops trading with another nation. One major reason a nation would boycott another nation is if it disagrees with a certain policy. It could stop trading with that nation until the nation's government ended the policy.

Terms for International Affairs/ Terms for Domestic Affairs

• Standards and regulations: To protect themselves from harmful products, many governments create rules and standards for products allowed in their countries. For example, a government may have certain packaging conditions or sanitation standards for any goods that enter its nation. Foreign goods will have to go through customs to make sure they meet these regulations. This can disrupt trade between nations.

• Monopolies: A monopoly is a market with many buyers but only one seller. This means there is no competition in the market and the seller determines the price. The U.S. government discourages monopolies because citizens can easily be taken advantage of in monopoly situations.

• Subsidies: A subsidy is financial assistance the government gives to desirable businesses to help them remain operable. When the government offers subsidies to local suppliers, the suppliers can then sell their goods at a lower price and can hopefully sell more of their products than they would have been able to without the subsidies.

• National Deficit: The national deficit only includes the shortfalls in the federal budget within a fiscal year. It is different from the national debt because the national debt is the accumulation of deficits over a period of time.

Executive Branch • The framers when picturing a

leader wanted a strong leader, however, a leader that was not a despot or tyrant trampling people’s liberties.

• Article 2 of the Constitution describes presidential powers, presidential qualifications, and those constitutional amendments related to the presidency.

• There are four short sections that respectively, vest executive power in the president, establish his control over foreign affairs through his commander-in-chief role and treaty-making powers,

• delineate his responsibility to inform Congress about the state of the Union and “to take care that the laws be faithfully executed,” and cover impeachment procedures by which a president can be removed from office.

• Constitution only list three qualifications that one must possess to become president:

• 1. At least thirty-five years old• 2. a natural born citizen• 3. resident of the U.S. for at least

fourteen years

Executive Branch• There are two amendments that

affect presidential term and succession:

• Twenty –second Amendment: This amendment was created in order to set limits on the president.

• Twenty-fifth Amendment: This amendment permits the president to appoint a new vice-president when there is a vacancy in that office. The presidential appointment is subject to congressional approval by a majority vote in the House and Senate.

• Impeachment and removal: • The House of Representatives can

impeach a president by bringing charges against him for misuse of powers or committing criminal actions. If the articles of impeachment are approved by a House majority, the Senate then sits as a jury to determine ultimate guilt or innocence. A two-thirds majority vote by the Senate is required for conviction and subsequent removal from office.

• The chief justice of the Supreme Court serves as the presiding judge over the impeachment trial.

U.S. Politics12/03/10

• Currently, both the national debt and our budget deficit is extremely high. This financial crisis is causing many Americans to live in fear concerning our economic future. Some politicians have considered to cut funding for entitlement programs as a way to offset a potential fiscal disaster. Do you concur with this consideration?

• Entitlements: federal programs such as unemployment compensation, Social Security, Medicare, and farm price supports.

U.S. Politics12/03/10

• Do Now: Many state and federal legislators on both sides of the political spectrum are very concerned about the federal deficit and national debt that has caused Americans to question the solvency of the United States. Some politicians on the left believe in taxing the rich to help solve the problem, while the right agrees that cutting taxes for all Americans and encouraging productivity and job creation would eventually mitigate America’s financial woes. What are some of your thoughts on this issue? In addition, what do you think should be done concerning our apparent insolvency?

• Insolvent: not solvent; unable to satisfy creditors or discharge liabilities, either because liabilities exceed assets or because of inability to pay debts as they mature.

Political Parties in Our Democracy • Start reading from pages 588-603

located in chapter twenty-two.• When you are finished reading answer

the following questions:• 1. What do people expect from

government?• 2. What are political parties?• 3. Explain the purpose of political

parties? • 4. How do political parties help

government at the local, state, and national level?

• 5. Define the term nominate, and the responsibilities of political parties related to potential candidates.

• 6. What does it mean when certain public offices are nonpartisan?

• 7. Explain the difference between a party platform and plank.

• 8. How does a political parties ideas of government set the tone in the executive branch as well as other parts of government?

• 9. Who are the current political watchdogs? In addition, how do they function?

• 10. Why would it be important for political parties to provide citizens with a voice?

• 11. Why is it important for candidates to have contact with large numbers of citizens when campaigning?

Political Parties in Our Democracy • 12. Define canvassing and its

importance. • 13. Why would people volunteer

their time for a political campaign?

• 14. Why would members of political parties believe it is one’s civic duty to participate in government?

• 15. Explain why George Washington was unsure about political parties.

• 16. Define the Republican party as it was in 1854.

• 17. Which president provoked a major shift in political power in the 1930’s?

• 18. What are third parties and why are they created?

• 19. Explain some of the obstacles associated with a third party candidate?

• 20. How can a third party change the outcome of an election? In addition, provide one example.

• 21. List some differences between the Republican and Democratic party.

Political Parties in Our Democracy • 22. Explain how our two major

political parties are similar? • 23. Why do Republican and

Democrats typically avoid taking extreme stands on issues?

• 24. How do the Democrats and Republican parties differ on the role of the government in the nation’s economy?

• 25. Based on the information in the diagram and charts on pages 598-599, where do you think the Democratic Party falls on the political spectrum? The Republican Party? The Constitutional Party? Explain your answer.

• 26. Define the term moderate; and why do you suppose they fall within the middle of the political spectrum?

• 27. Where do your ideas and values fall under related to the political spectrum on pages 598-599?

• 28. How would you describe the two parties’ approach to taxes?

• 29. How are political parties organized?

• 30. What takes place at the national party conventions?

Political Parties in Our Democracy • 31. What are precincts?• 32. Read the section titled citizen

profiles on page 600 and answer the question that follows.

• 33. At what level are parties organized?

• 34. What takes place at state conventions?

• 35. In your opinion, why would state conventions be critical to political parties?

• 36. What takes place at the national party conventions?

• 37. Explain how membership in a political party is different from becoming a member of a club.

• 38. How might your views on a certain issue influence which party you would support?

• 39.Name the three elements that determine a political parties strength.

• 40. Define the term patronage.• 41. How has the strength of the

two major political parties changed in the United States in the last several decades?

Choosing Candidates

• Start reading from pages 605-609 located in chapter twenty-two.

• When you are finished reading answer the following questions:

• 1. What would be the most important role of any political party?

• 2. What is the first step one should take if he/she is interested in running for public office?

• 3. Define the term self-nominating.• 4. What is a write-in –candidate?• 5. Why is a filing fee necessary if a

person is interested in running for public office?

• 6. Explain the difference between caucuses of today as opposed to the early days of elections.

• 7. Explain how the direct primary would lead to the general election.

• 8. Why are independent voters prohibited from voting in a closed election?

• 9. Explain how open primaries are a lot more malleable than closed primaries. (Malleable: flexible)

• 10. Answer the two questions under the heading Analyzing Political Cartoons on page 606.

Choosing Candidates• 16. Why is fundraising so important

to political campaigns? • 17. How are delegates to the

national nominating convention chosen?

• 18. In which states do presidential election races start? In addition, why do candidates traditionally begin presidential races in those particular states.

• 19. Explain why these early races are so crucial to the success of a presidential candidate?

• 20. What takes place at a national convention in a presidential election year?

• 21. Explain the task of a delegate before and during a national convention.

• 11. Why do you think so many candidates for president have been senator’s or governors?

• 12. Of all the different primaries which receives the most attention?

• 13. What does a potential candidate need to be successful in order to run for president?

• 14. Why do most presidents gain their parties nomination for reelection?

• 15. How do candidates for president raise money for an election?

Choosing a Candidate

• 22. How many votes are needed to choose a presidential candidate?

• 23. Explain the process of developing a party platform.

• 24. What is the purpose of an acceptance speech?

• 25. After an acceptance speech, what would be the next step for a presidential candidate?

• 26. What do you think is the purpose of televising the national conventions?

• Please study in order to prepare for Friday’s exam!

• There will be a review tomorrow. • If you have missed any questions

from this week or last go to Roxboroughgovernment.wikispaces.com and you will find what you need for the exam.

Pennsylvania Constitution• Most if not all states have a state

constitution. Pennsylvania first adopted a constitution during colonial times and since then has had four different versions.

• Article one of the Pennsylvania constitution titled the Declaration of Rights, list the rights that are afforded to all citizens of Pennsylvania. In addition, it prohibits the enactment of laws that would infringe upon certain rights.

• The Pennsylvania Constitution provides separate articles for the three branches of government-legislative, executive, and judicial. There is a significant difference in the type of power granted to each branch.

• The second article of the Constitution gives "legislative power of the Commonwealth" to the General Assembly, which includes both the Senate and the House of Representatives.

Pennsylvania Constitution• The fourth article gives the Governor

"supreme executive power." • Judicial power is addressed in the fifth

article, which establishes "a unified judicial system consisting of the Supreme Court, the Superior Court, the Commonwealth Court, courts of common pleas, community courts, municipal and traffic courts in the City of Philadelphia, and other such courts as may be provided by law and justices of the peace."

• Amendments to the Pennsylvania Constitution may be proposed in either the Senate or the House of Representatives but must pass in both by a majority vote of the members elected. Three months before the next general election, the proposed amendment is published in at least two newspapers in every county. After the election, the amendment must again be approved through a majority vote of the members of the General Assembly. The amendment is again published and voted on by the entire electorate. If passed by a majority vote, the amendment becomes part of the Constitution.

• No individual amendment can be submitted more often than once in five years, and when two or more amendments are submitted at once, they are voted on separately (see Article XI, Section 1 ).

Pennsylvania State Finance

• LBFC: The Legislative Budget and Finance Committee (LBFC) is a bipartisan, bicameral legislative service agency consisting of 12 members of the General Assembly. As set forth in the LBFC's enabling legislation, Act 195 of 1959, as amended, 46 P.S. §§70.1-70.6, the Committee is to conduct studies and make recommendations aimed at eliminating unnecessary expenditures; promoting economy in the government of the Commonwealth; and assuring that state funds are being expended in accordance with legislative intent and law. To carry out these mandates, the LBFC is authorized to conduct a wide range of research activities pertaining to the operation and performance of state-funded programs and agencies.

• By law, the Committee membership is comprised of six Senators and six Representatives, evenly divided between the majority and minority parties in each chamber. The President Pro Tempore of the Senate, the Speaker of the House of Representatives and Majority and Minority Leaders of each House, or their designees, serve as members of the Committee. The President Pro Tempore of the Senate and the Speaker of the House of Representatives appoint three additional members of their respective chambers, at least two of whom are to be from the minority party. The Committee elects its own Chairman, Vice Chairman, Secretary and Treasurer.

Pennsylvania State Finance• The Committee appoints an Executive

Director who is responsible for the direction of the Committee's staff and activities. A Project Manager, who reports directly to the Executive Director, generally manages projects. The Project Manager, in turn, leads teams of Analyst staff. The LBFC’s staff includes persons with graduate degrees in public administration, business administration, law, and journalism. The staff's experience covers a wide range of topics, including among others: health and welfare, transportation, economic development and law enforcement.

• Office of the Budget: The Office of the Budget is responsible for preparing the Governor’s annual budget and implementing it after it is passed by the General Assembly and the Governor signs it into law.

• Through Comptroller Operations, the Office of the Budget oversees the commonwealth’s uniform accounting, payroll and financial reporting systems. Comptroller Operations also facilitates payments to vendors who do business with the commonwealth.

Pennsylvania State Finance• As a citizen of the state of

Pennsylvania you are responsible for paying the following taxes: Income, sales, and property. These are the three main taxes required from each citizen.

• Revenue is collected by the government in several different areas, in particular through sales tax, income tax, property tax, estate tax, excise tax, licensing tax, etc... In some states you may have to pay into all the coffers or just some; it varies from state to state.

• While property taxes are collected at the local level, by counties, cities and towns, the rate is capped by the state government, meaning that the local government cannot exceed the maximum. This also means that rates will vary by location, so do your research first to find the lowest rates in the state.

• Property taxes are the primary means of generating revenue for local use, with much of it going towards education, roads and often emergency services.

Pennsylvania Taxes• Income Tax• Pennsylvania has a flat tax rate of

3.07 percent on individual income tax, with no standard deductions or personal exemptions.

• Property Tax• The state of Pennsylvania does not

levy or collect taxes on real estate or personal property. Instead, those taxes are reserved for the local governments: counties, municipalities and school districts. Property taxes in Pennsylvania are collected only on real estate -- land and buildings -- and not on other types of property like cars or business inventory.

• Sales & Use Tax• Pennsylvania imposes a 6% state

sales tax on taxable goods and services (exemptions from sales tax include food, clothing, drugs, textbooks, resale items and residential heating fuels). A local sales tax of 1% is also collected on the sales of taxable goods and services in Philadelphia and Allegheny counties (for a total of 7% sales tax).

Pennsylvania Taxes• Inheritance and Estate Tax• Pennsylvania collects an inheritance tax

ranging from 6% for direct heirs to 15% for all other beneficiaries. Property inherited from a spouse or by a parent from a child 21 or younger is tax-exempt. Other Pennsylvania Taxes

• Cigarette Tax is 31 cents per pack, which is included in the price of cigarettes.

• Gasoline (Fuel) Tax is 25.9 cents per gallon on gasoline and 30.8 cents on diesel fuel, and is included in the price charged at the pump.

• Realty Transfer Tax is collected by Pennsylvania counties at the rate of 1% on the monetary worth of the real estate.