Political and Economic Terms
by Michael Mamas
(definitions taken from various online sources)
A Latin phrase that literally means “for this.” It generally signifies a solution designed for a specific problem or task, non-generalizable, and that cannot be adapted to other purposes. Common examples are organizations, committees, and commissions created at the national or international level for a specific task. Ad hoc can also have connotations of a makeshift solution, inadequate planning, or improved evens.
Those opposed to the Constitution itself because they saw it concentrating too much authority in the central government.
Opposition to state intervention into personal. Social, or economic affairs. Anti-statist views may reject the state completely as well as rulership in general (e.g., anarchism), they may wish to reduce the size and scope of the state to a minimum (e.g., monarchism), or they may advocate a stateless society as a distant goal (e.g., autonomism).
A system of legal racial segregation enforced by the National Party government in South Africa between 1948 and 1994, under which the rights of the majority “non-white” inhabitants of South Africa were curtailed and minority rule by white people was maintained.
The War in Afghanistan began on October 7, 2001, as the U.S. military’s Operation Enduring Freedom (OEF) was launched, along with the British military, in response to the September 11, 2001 attacks on the U.S. The U.S. aim of their invasion was to find Osama bin Laden and other high-ranking Al-Qaeda members to be put on trial, to destroy the organization of Al-Qaeda, and to remove the Taliban regime which supported and gave safe harbor to it. The UK has, since 2002, led its own military operation, Operation Herrick, as part of the same war in Afghanistan. The character of the war evolved from a violent struggle by U.S.-led forces against Al-Qaeda and its Taliban supporters, to a complex counterinsurgency effort by U.S.-led forces, against Afghans who claim to be trying to expel those U.S.-led forces. The war has killed tens of thousands of people, the majority of whom have been civilians.
A general decline in the stock market over a period of time. It’s a transition from high investor optimism to widespread investor fear and pessimism.
Increasing investor confidence and increased investing in anticipation of future price increases. A bullish trend in the stock market often begins before the general economy shows clear signs of recovery.
A meeting of supporters or members of a political party or movement.
Cash for Clunkers
The Car Allowance Rebate System (CARS) was a $3 billion U.S. federal scrappage program under the Obama administration, intended to provide economic incentives to U.S. residents to purchase a new, more fuel-efficient vehicle when trading in a less fuel-efficient vehicle. The program was promoted as providing stimulus to the economy by boosting auto sales, while putting safer, cleaner, and more fuel-efficient vehicles on the roadways. A study at the University of Delaware concluded that for each vehicle trade, the program had a net cost of approximately $2000, with total costs outweighing all benefits by $1.4 billion.
Currency Induced Cost Push Inflation is defined by a system that continuously balances reward relative to risk.
A coalition is a temporary alliance of people, factions, parties, or nations. Presently, they usually refer to the group contributing military forces to Iraq. They initially were Albania, Armenia, Australia, Azerbaijan, Bosnia-Herzegovina, Bulgaria, Czech Republic, Denmark, El Salvador, Estonia, Georgia, Kazakhstan, Latvia, Lithuania, Macedonia, Moldova, Mongolia, Poland, Romania, South Korea, and the United Kingdom. However, various military reports also list Japan, Portugal, Singapore, Ukraine, Fiji (through UNAMI); and Hungary, Iceland, Slovenia, and Turkey through assisting with a NATO training mission. Countries who have had troops in and have since pulled out include Nicaragua, Spain, Dominican Republic, Honduras, Philippines, Thailand, New Zealand, Tonga, Portugal, The Netherlands, Hungary, Singapore, Norway, Ukraine, Japan, Italy, and Slovakia.
A good for which there is demand, but which is supplied without a qualitative differentiation across a market. They are often substances that come out of the earth and maintain roughly a universal price (e.g., petroleum, milk, copper, realty, notebook paper, etc.).
Consists of the Senate and House of Representatives, both equal partners in the legislative process (legislation cannot be enacted without the consent of both chambers) for the federal government of the U.S. However, the Constitution grants each chamber some unique powers. The Senate ratifies treaties and approves top presidential appointments and the House initiates revenue-raising bills. The House initiates impeachment cases, while the Senate decides impeachment cases. A two-thirds vote of the Senate is required before an impeached person can be forcibly removed from office.
The sudden, illegal deposition of a government, usually by a small group of the existing state establishment, typically the military, to replace the deposed government with another body, either civil or military. A coup succeeds when the usurpers establish their legitimacy if the attacked government fails to thwart them by allowing their strategic, tactical, and political consolidation and then receiving the deposed government’s surrender, or other acquiescence of the populace and the non-participant military forces.
Also known as competitive devaluation, it is a condition in international affairs where countries compete against each other to achieve a relatively low exchange rate for their home currency, so as to help their domestic industry. It has been rate through most of history, though a widely recognized episode of currency war occurred in the 1930s.
The practice of lowering the value of currency. It is particularly used in connection with commodity money such as gold or silver coins. A coin is said to be debased if the quantity of gold, silver, copper, or nickel contained in it is reduced. The primary reason a government will debase its currency is financial gain for the sovereign at the expense of citizens. By reducing the silver or gold content of a coin, a government can make more coins out of a given amount of precious metal. Inflation follows, allowing the sovereign to pay off or repudiate government bonds. However, the purchasing power of the citizens’ currency and standard of living has been reduced.
A Latin expression that means “in practice, but not necessarily ordained by law.” It is analogous to “for all intents and purposes” or “in fact”. When describing political or legal situations, de jure and de facto are used instead of “in principle” and “in practice”, respectively.
deflationary debt spiral
A theory of economic cycles which holds that recessions and depressions are due to the overall level of debt shrinking (deflating). The credit cycle is the cause of the economic cycle. The theory was developed by Irving Fisher following the Wall Street Crash of 1929 and the ensuing Great Depression. According to Fisher, when the debt bubble bursts, the following sequence of events occurs:
Assuming, accordingly, that, at some point of time, a state of over-indebtedness exists, this will tend to lead to liquidation, through the alarm either of debtors or creditors or both. Then we may deduce the following chain of consequences in nine links:
- Debt liquidation leads to distress selling and to
- Contraction of deposit currency, as bank loans are paid off, and to a slowing down of velocity of circulation. This contraction of deposits and of their velocity, precipitated by distress selling, causes
- A fall in the level of prices, in other words, a swelling of the dollar. Assuming, as above stated, that this fall of prices is not interfered with by reflation or otherwise, there must be
- A still greater fall in the net worths of business, precipitating bankruptcies and
- A like fall in profits, which in a “capitalistic,” that is, a private-profit society, leads the concerns which are running at a loss to make
- A reduction in output, in trade and in employment of labor. These losses, bankruptcies and unemployment, lead to
- pessimism and loss of confidence, which in turn lead to
- Hoarding and slowing down still more the velocity of circulation.
The above eight changes cause
- Complicated disturbances in the rates of interest, in particular, a fall in the nominal, or money, rates and a rise in the real, or commodity, rates of interest.
According to law, in principle. When describing political or legal situations, de jure and de facto are used instead of “in principle” and “in practice”, respectively.
In economics, a sustained long-term downturn in economic activity in one or more economies. It is a more severe downturn than a recession, which is seen by economists as part of a normal business cycle. Considered a rare and extreme form of recession, a depression is characterized by its length, and by abnormally large increases in unemployment, falls in the availability of credit (often due to some kind of banking/financial crisis), shrinking output and investment, numerous bankruptcies (including sovereign debt defaults), significantly reduced amounts of trade and commerce (especially international), as well as highly volatile relative currency value fluctuations (most often due to devaluations). Price deflation, financial crises, and bank failures are also common elements of a depression.
A financial contract with a value linked to the expected future price movements of the asset it is linked to, such as a share or currency. There are many kinds of derivatives, with the most notable being swaps, futures, and options. Derivatives are a form of alternate investment. A derivative is incapable of having value of its own, only a theoretical face value that is calculated using formulas.
A reduction in the value of a currency with respect to those goods, services, or other monetary units with which that currency can be exchanged. It specifically implies an official lowering of the value of a country’s currency within a fixed exchange rate system, by which the monetary authority formally sets a new fixed rate with respect to a foreign reference currency.
The idea of divinely ordained events and outcomes.
the Dollar Index
The U.S. Dollar Index (USDX) is a measure of the value of the U.S. dollar relative to a basket of foreign currencies. It is a weighted geometric mean of the dollar value compared only with the Euro, Pound sterling, Canadian dollar, Swedish krona, Swiss franc, and the Japaense Yen. The USDX goes up when the U.S. dollar gains strength when compared to other currencies.
Popularly elected representatives (electors) who formally elect the President and Vice President of the U.S. Since 1964, there have been 538 electors in each presidential election. The Constitution specifies how many electors each state is entitled to have and each state’s legislature decides how its electors are to be chosen. Each state appoints its electors on a winter-take-all basis, based on the statewide popular vote on Election Day. The national popular vote is not the basis for electing a President or Vice President. A candidate must receive an absolute majority of electoral votes (currently 270) to win the Presidency. If no candidate receives a majority, that election is determined via a contingency procedure in the Twelfth Amendment.
A diplomat. One who practices the art of conducting negotiations between representatives of groups or states.
The best-known and most widely used credit score model in the U.S., the FICO score is calculated statistically, with information from a consumer’s credit files. It represents the creditworthiness of a person, the likelihood that person will pay his debts and provides a snapshot of risk that banks and other institutions use to help make lending decisions. Applicants with higher FICO scores may be offered better interest rates on mortgages or automobile loans. Because credit scores do not consider race, sex, or ethnicity, it is generally considered to be the most fair and objective underwriting tool available to lenders.
Banks sold mortgages multiple times all through computer transactions. The original documents were lost. Now, banks are unable to foreclose without being able to present those original documents. It has created a 1.4 trillion dollar mess. Homeowners can make a play to legally claim they owe nothing. Courts may well be bound to agree. Legislators may need to step in to avert total chaos.
The complexity didn’t stop there. Banks could shuffle around money so quickly within the cyberworld that it became like a shell game. Money could appear and disappear instantly under whatever shell they wanted it to. This is where the money came from for many of those mortgages. Strictly speaking, the banks didn’t even have the money they loaned. It was a big financial shell game.
A group of twenty finance ministers and central bank governors, sometimes known as the Group of Twenty, are from 20 economies – 19 countries plus the European Union. Collectively, the G-20 economies comprise 85% of global gross national product, 80% of world trade, and two-thirds of the world populations. It was formed for cooperation and consultation on matters pertaining to the international financial system. It studies, reviews, and promotes discussion among key industrial and emerging market countries of policy issues pertaining to the promotion of international financial stability, and seeks to address issues that go beyond the responsibilities of any one organization. In September, 2009, the group announced they will replace the G8 as the main economic council of wealthy nations.
Gross National Product which is defined as the market value of all goods and services produced in one year by labour and property supplied by the residents of a country.
The Republican Party is often called the Grand Old Party (GOP). As of September, 2010, Republicans fill a minority of seats in both the Senate and the House of Representatives, hold a minority of state governorships, and control a minority of state legislatures.
The governor is the chief executive of each state, retains sovereign police power, and is the political and ceremonial head of state. Nearly ¾ of the states hold gubernatorial elections in the same year as midterm elections.
The Persian Gulf War (August 2, 1990 – February 28, 1991) was a war waged by a U.N.-authorized coalition force from thirty-four nations led by the U.S. and U.K. against Iraq. Saddam Hussein was the leader of Iraq at the time. The war is also commonly known as Operation Desert Storm, the First Gulf War, and the Iraq War. The invasion of Kuwait by Iraqi troops was met with international condemnation, and brought immediate economic sanctions against Iraq by members of the U.N. Security Council. This war marked the first time people all over the world were able to watch on T.V. live pictures of missiles hitting their targets and fighters taking off from aircraft carriers.
A lightly regulated investment fund that is typically open to a limited range of investors that pays a performance fee to its investment manager. As a class, hedge funds undertake a wider range of investment and trading activities than traditional long-only investment funds, and invest in a broader range of assets including long and short positions in share, bonds, and commodities. As the name implied, hedge funds often seek to hedge some of the risks inherent in their investments using a variety of methods, notably short selling and derivatives. In most jurisdictions, hedge funds are open only to a limited range of professional or wealthy investors who meet certain criteria set by regulators, and are accordingly exempted from many regulations that govern ordinary investment funds.
House of Representatives branch of Congress with 435 members. Each member represents a district and serves a two-year term. House seats are apportioned among the states by population.
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
Many philosophers and political scientists make a distinction between natural rights and legal rights. Natural rights, also called moral rights or unalienable rights, would be rights deemed morally universal. Legal rights would be viewed as culturally and politically relative.
In economics, a rise in the general level of prices of goods and services in an economy over a period of time. When the price level rises, each unit of currency buys fewer goods and services, an erosion in the purchasing power of money. Negative effects of inflation include a decrease in the real value of money and other monetary items over time, discouraging investment and savings, and high inflation may lead to shortages of good if consumer begin hoarding. Positive effects include a mitigation of economic recessions, and debt relief by reducing the real level of debt. High rates of inflation and hyperinflation are caused by an excessive growth of the money supply.
An armed rebellion against a constituted authority when those taking part in the rebellion are not recognized as belligerents.
International Security Assistance Force, established by the U.N. Security Council at the end of December, 2001, to secure Kabul and the surrounding areas. By July, 2009, ISAF had around 64,500 troops from 42 countries, with NATO members providing the core of the force. The NATO commitment is particularly important to the U.S. because it appears to give international legitimacy to the way. The U.S. has approximately 30,000 troops in ISAF.
In finance, a high-yield bond, non-investment-grade bond, or speculative bond that is rated below investment grade at the time of purchase. These bonds have a higher risk of default or other adverse credit events, but typically pay higher yields than better quality bonds in order to make them attractive to investors.
A graph showing that increased taxes results in decreased productivity, resulting in decreased net tax revenue to the government. Or conversely, decreased taxes results in increased productivity and increased tax revenue to the government.
Libertarians support maximum liberty in both personal and economic matters. They advocate a much smaller government; one that is limited to protecting individuals from coercion and violence. Libertarians tend to embrace individual responsibility, oppose government bureaucracy and taxes, promote private charity, tolerate diverse lifestyles, support the free market, and defend civil liberties.
Market liquidity is an asset’s ability to be sold without causing a significant movement in the price and with minimum loss of value. Money or cash in hand is the most liquid asset.
Liquidity also refers to both a business’s ability to meet its payment obligations, in terms of possessing sufficient liquid assets, as well as such assets themselves.
In finance, a long position in a security (e.g., stock, bond, etc.) means the holder of the position owns the security and will profit if the price of the security goes up. Going long is the more conventional practice of investing and is contrasted with going short.
A quota of troops furnished.
money flow footprint
How a currency trades and its range (high and low) over a period of time
The subprime mortgage crisis is an ongoing real estate and financial crisis, characterized by a fall in U.S. housing prices, a rise in mortgage delinquencies and foreclosures, and severe disruption in the shadow banking system, with major adverse consequences for the economies of the U.S. and Europe.
Approximately 80% of U.S. mortgages issued to subprime borrowers were adjustable-rate mortgages. After U.S. house prices peaked in mid-2006 and began their steep decline thereafter, refinancing became more difficult. As adjustable-rate mortgages began to reset at higher rates, mortgage delinquencies soared. Securities backed with subprime mortgages, widely held by financial firms, lost most of their value. Global investors also drastically reduced purchases of riskier mortgage-backed debt and other securities. The result has been a decline in the capacity and willingness of the private financial system to support lending, tightening credit around the world and slowing economic growth in the U.S. and Europe.
multinational corporation (MNC)
Also called a trans-national co-operation (TNC) or multinational enterprise (MNE), it is a corporation or an enterprise that manages production or delivers services in more than one country. The International Labour Organization (ILO) has defined an MNC as a corporation that has its management headquarters in one country, known as home country, and operates in several other countries, known as host countries.
The North Atlantic Treaty organization, also called the North Atlantic Alliance, is an intergovernmental military alliance based on the North Atlantic Treaty which was signed in 1949. The NATO headquarters is in Brussels, Belgium. The organization constitutes a system of collective defense whereby its member states agree to mutual defense in response to an attack by an external party.
Organization of Petroleum Exporting Countries is a cartel of twelve countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. One of its principal goals is the determination of the best means for safeguarding the cartel’s interests, individually and collectively. It also pursues ways and means of ensuring the stabilization of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations, giving due regard at all times to the interests of the producing nations and to the necessity of securing a steady income to the producing countries, an efficient and regular supply of petroleum to consuming nations, and a fair return on their capital to those investing in the petroleum industry.
Over-the-counter derivatives. The Commodity Futures Modernization Act of 2000 (CFMA) is a U.S. federal legislation that clarified most OTC derivatives transactions between sophisticated parties would not be regulated as futures under the Commodity Exchange Act (CEA) or as securities under the federal securities laws. Instead the major dealers of those products (banks and securities firms) would continue to have their dealings in OTC derivatives supervised by their federal regulators under general safety and soundness standards.
A person whose wealth is the source of control or great influence. A member of a wealthy ruling class.
A political attitude favoring or advocating changes or reform. Progressivism is often viewed in opposition to conservative or reactionary ideologies. In the late 19th century and into the 20th century, in reference to a more general response to the vast changes brought by industrialization, progressivism was an alternative to both the traditional conservative response to social and economic issues and to the various more radical streams of socialism and anarchism which opposed them. Today, most progressive politicians in the U.S. associate with the Democratic Party or the Green Party. In the U.S. Congress, there exists the Congressional Progressive Caucus, which is often in opposition to the more conservative Democrats.
The economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to discourage imports, and prevent foreign take-over of domestic markets and companies. This policy is closely aligned with anti-globalization and contrasts with free trade, where government barriers to trade and movement of capital are kept to a minimum. The term is mostly used in the context of economics, where protectionism refers to policies or doctrines which protect businesses and workers within a country by restricting or regulating trade with foreign nations.
The foreseeing care and guidance of God or nature over the creatures of the earth.
Quantitative Easing (QE)
A monetary policy used by central banks to increase the supply of money by increasing the excess reserves of the banking system. This policy is usually invoked when the normal methods to control the money supply have failed (i.e., the bank interest rate, discount rate, and/or interbank interest rate are either at, or close to, zero.
A central bank implements QE by first crediting its own account with money it creates out of nothing. It then purchases financial assets, including government bonds, agency debt, mortgage-backed securities and corporate bonds, from banks and other financial institutions in a process referred to as open market operations. The purchases, by way of account deposits, give banks the excess reserves required for them to create new money, and thus hopefully induce a stimulation of the economy, by the process of deposit multiplication from increased lending in the fractional reserve banking system.
Risks include the policy being more effective than intended, spurring hyperinflation, or the risk of not being effective enough, if banks opt simply to sit on the additional cash in order to increase their capital reserves in a climate of increasing defaults in their present loan portfolio.
quid pro quo
A more-or-less equal exchange or substitution of goods or services, otherwise known as “give and take,” “tit for tat,” “this for that,” and “you scratch my back, and I’ll scratch yours.”
A business cycle contraction, a general slowdown in economic activity over a period of time. Production as measured by Gross Domestic Product (GDP), employment, investment spending, capacity utilization, household incomes, business profits and inflation all fall during recessions; while bankruptcies and the unemployment rate rise. Recessions are generally believed to be caused by a widespread drop in spending. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending, and decreasing taxation. A severe (GDP down by 10%) or prolonged (3-4 years) recession is referred to as an economic depression, although some argue that their causes and cures can be different.
A term used by consumer advocates to describe the robotic process of the mass production of false and forged execution of mortgage assignments, satisfactions, affidavits, and other legal documents related to mortgage foreclosures and legal matters being created by persons without knowledge of the facts being attested to. It also includes accusations of notary fraud wherein the notaries pre and/or post notarize the affidavits and signatures of so-called robo-signers. Please see “foreclosure crisis” above.
The U.S. Securities and Exchange Commission is a federal agency that holds primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nation’s stock and options exchanges, and other electronic securities markets in the U.S. The main reason for the creation of the SEC was to regulate the stock market and prevent corporate abuses relating to the offering and sale of securities and corporate reporting. The S.E.C. has five commissioners who are appointed by the President of the United States with the advice and consent of the Senate. No more than three can be from a single political party. Each commissioner serves a five-year term which are staggered so that one commissioner’s term ends each year.
The Service Employees International Union is a labor union representing about 1.8 million workers in over 100 occupations in the U.S., Canada, and Puerto Rico. The SEIU is focused on organizing workers in three sectors: health care, public services, and property services. It is the fastest growing labor union in the U.S. and has over 150 local branches. It is sometimes referred to as the “purple ocean” at political events because of the union’s easily recognizable purple shirts. The union is also known for its Justice for Janitors program and strong support for Democratic candidates.
Pertaining to worldly things or to things that are not regarded as religious, spiritual, or sacred.
A part of Congress (see “Congress” above). Each state, regardless of population, has two senators that serve a six-year term. The terms are staggered, so every two years, approximately 1/3 of the Senate is elected.
In finance, short selling is the practice of selling assets, usually securities, that have been borrowed from a third party (usually a broker) with the intention of buying identical assets back at a later date to return to the lender. The short seller hopes to profit from a decline in the price of the assets between the sale and the repurchase, as the seller will pay less to buy the assets than the seller received on selling them. “Shorting” and “going short” also refer to entering into any derivative or other contract under which the investor profits from a fall in the value of an asset.
In finance, subprime lending (a.k.a., near-prime, non-prime, and second-chance lending) means making loans that are in the riskiest category of consumer loans and are typically sold in a separate market from prime loans. The standards for determining risk categories refer to the size of the loan, the non-traditional structure of the loan, borrower credit rating, ratio of borrower debt to income or assets, ratio of loan to value or collateral, and documentation provided on those loans which do not meet Fannie Mae or Freddie Mac underwriting guidelines for prime mortgages. Although there is no single, standard definition, in the U.S., subprime loans are usually classified as those where the borrower has a FICO score below 640. Subprime lending encompasses a variety of credit types, including mortgages, auto loans, and credit cards.
A form of financial assistance paid to a business or economic sector. Most subsidies are made by the government to producers or distributors in an industry to prevent the decline of that industry (e.g., as a result of continuous unprofitable operations) or an increase in the prices of its products or simply to encourage it to hire more labor (as in the case of a wage subsidy).
Subsidies can be regarded as a form of protectionism or trade barrier by making domestic goods and services artificially competitive against imports. Subsidies may distort markets, and can impose large economic costs.
In standard supply and demand curve diagrams, a subsidy will shift either the demand curve up or the supply curve down. A subsidy that increases the production will tend to result in a lower price, while a subsidy that increases demand will tend to result in an increase in price. Both cases result in a new economic equilibrium.
The consumer surplus is the amount that consumers benefit by being able to purchase a product for a price that is less than the most they would be willing to pay.
The producer surplus is the amount that producers benefit by selling at a market price mechanism that is higher than the least they would be willing to sell for.
On a standard supply and demand diagram, consumer surplus (CS) is the triangular area above the price level and below the demand curve, since intramarginal consumers are paying less for the item than the maximum they would pay. Contrarily, producer surplus (PS) is the triangular area below the price level and above the supply curve, since that is the minimum quantity a producer can produce.
The capacity to endure. Sustainability economics involves ecological economics where social, cultural, health-related, and monetary/financial aspects are integrated. Moving towards sustainability is also a social challenge that entails international and national law, urban planning and transport, local and individual lifestyles, and ethical consumerism. Ways of living more sustainably can take many forms from reorganizing living conditions (e.g., ecovillages, eco-municipalities, and sustainable cities), reappraising economic sectors (permaculture, green building, sustainable agriculture), or work practices (sustainable architecture), using science to develop new technologies (green technologies, renewable energy), to adjustments in individual lifestyles that conserve natural resources.
An hanafi Islamist political group that governed Afghanistan from 1996 until it was overthrown in late 2001. It has regrouped since 2004 and revived as a strong insurgency movement governing mainly local Pashtun areas and fighting a guerrilla war against the governments of Afghanistan, Pakistan, and the NATO-led ISAF.
A tax levied on imports or exports. Tariffs are usually associated with protectionism, the economic policy of restraining trade between nations. For political reasons, tariffs are usually imposed on imported goods, although they may also be imposed on exported goods.
Born in response to President Obama’s self-declared desire to fundamentally change America, it is a grass-roots political movement inspired by a commitment to limited government. Within that, supporters hope to reduce the massively ballooning national debt, cut runaway federal spending, keep taxes in check, reinvigorate the economy, and block the expansion of the state into citizens’ lives.
The Tea Party Express The most well-known faction of the tea party movement that got its start with high-profile tours. It has a major influence, largely due to its fund-raising.
Any government policy or regulation that restricts international trade. The barriers can take many forms, including the following: trades, import licenses, export licenses, import quotas, subsidies, non-tariff barriers to trade, voluntary export restraints, local content requirements, embargo. Most trade barriers work on the same principle: the imposition of some sort of cost on trade that raises the price of the traded products. If two or more nations repeatedly use trade barriers against each other, then a trade war results.
Trade barriers are often criticized for the effect they have on the developing world. Because rich-country players call most of the shots and set trade policies, goods, such as crops that developing countries are best at producing, still face high barriers. Trade barriers such as taxes on food imports or subsidies for farmers in developed economies lead to overproduction and dumping on world markets, thus lowering prices and hurting poor country farmers. Tariffs also tend to be anti-poor with low rates for raw commodities and high rates for labor-intensive processed goods.
An official in a political party whose primary purpose is to ensure party discipline in a legislature. Whips are party enforcers who typically offer inducements and threaten punishments for party members to ensure that they vote according to the official party policy. A whip’s role is also to ensure that the elected representatives of their party are in attendance when important votes are taken.
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