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12 - Political Ideology: How Beliefs Shape Our Choices

Party Ideology

  • United States Diversity: Reflects diverse ideologies in public policies due to varied groups.
  • Policymakers' Challenge: Balancing competing ideologies while addressing citizens' needs.
  • Party Ideology Definition: A party’s philosophy on government's role and positions on major issues.
  • Party Identification Definition: An individual's attachment to a political party.

Key Ideologies

  • Conservatism: Prefers more social control, fewer business regulations, and minimal government economic intervention.
  • Liberalism: Supports less social control, more business and economic regulations.
  • Libertarianism: Advocates for minimal government regulation, focusing on protecting private property and individual liberty.

Ideological Differences in Public Policy

  • Republicans and Democrats: Differ on balancing liberty and order in social and economic issues.
    • Republicans: Emphasize business freedom and traditional values, showing mistrust towards government regulation.
    • Democrats: Focus on protecting minority rights and regulating businesses for public interest.

Examples of Policy Differences

  • Social Behavior and Morality: Republicans favor more control, while Democrats support individual liberties.
  • Economic Regulation: Democrats advocate for taxing the wealthy and regulating businesses, whereas Republicans prefer tax cuts for businesses and minimal regulation.
  • Property Rights: Republicans lean towards less restrictive use, Democrats favor regulations to prevent community harm.

Specific Policy Issues

  • Abortion: Republican "pro-life" vs. Democratic "pro-choice".
  • Privacy: Varied stances on NSA surveillance, influenced by party ideology.
  • Fracking: Demonstrates ideological divides on environmental regulations and economic interests.

Political Identification vs. Ideology

  • Distinction: Party ideology differs from personal political identification, which is shaped by multiple factors including family, education, and personal experiences.
  • Voter Behavior: Individuals tend to vote for parties whose ideologies align with their own beliefs.

Parties' Strategies and Partisanship

  • Ideological Contrasts: Both parties highlight ideological differences to attract supporters.
  • Partisanship Examples: Post-San Bernardino shootings, statements from Republican and Democratic leaders showcased ideological and partisan divides.

Ideology and Economic Policymaking

Economic Regulation and Government Intervention

  • Adam Smith's Influence: Advocated for a laissez-faire economy emphasizing minimal government intervention, arguing it leads to national prosperity.
  • Laissez-Faire Economy: Governments intrude as little as possible in economic transactions.
  • Command-and-Control Economy: Government dictates economic activity, including production and prices.
  • Mixed Economy: The U.S. employs a blend where individuals and businesses make many economic decisions, with government regulation present.

Monitoring Economic Health

  • Gross Domestic Product (GDP): Measures total value of goods and services produced, indicating economic prosperity or recession.
  • Economic Recession: Defined by two consecutive quarters of negative GDP growth.
  • Unemployment Rate: Percentage of job-seeking individuals unable to find employment.
  • Inflation and Consumer Price Index (CPI): Inflation reflects the rise in goods and services prices; CPI measures cost of a fixed basket of goods over time.

Theories of Economic Policymaking

  • Business Cycles: Describes the cyclical nature of economic activity with periods of expansion and contraction.
  • Keynesianism: Advocates for government spending to counterbalance economic contractions.
  • Supply-Side Economics: Focuses on lowering taxes to encourage economic growth.
  • Monetary and Fiscal Policy: Tools used by the federal government to influence the economy through central banking functions and government spending and taxation.

Fiscal Policy Ideologies

  • Republican Approach: Tends to support increased military spending and tax decreases.
  • Democratic Approach: Generally advocates for tax increases on the wealthy and government spending to stimulate the economy.

Key Points

  • Adam Smith's Laissez-Faire: Suggests prosperity through minimal government intervention.
  • Mixed Economy in the U.S.: Balances between individual/business autonomy and regulatory oversight.
  • Economic Indicators: GDP, unemployment, and inflation/CPI are crucial for policy decisions.
  • Economic Theories: Differing views on how to achieve economic stability and growth (Keynesian vs. Supply-Side).
  • Fiscal Policy Differences: Party ideologies shape differing approaches to spending and taxation.

Monetary Policy

Introduction to Monetary Policy

  • Monetary Theory: Suggests the supply of money, including credit availability, is the primary driver of economic cycles.
  • Effects of Increased Money Supply: Can lead to inflation due to too much money chasing too few goods.
  • Monetarists' View: Argues against fine-tuning the economy via Keynesian or supply-side policies, advocating for aligning money access with economic productivity.

The Dangers of Mismanaging Monetary Policy

  • Historical Misuse: Examples include hyperinflation in Germany, Austria, and Hungary post-WWI, leading to societal instability and political extremism.
  • Consequences: Societies experiencing monetary chaos are at risk of anarchy, violence, and the rise of extremism.

The Federal Reserve System (The Fed)

  • Structure and Independence: Comprises a board of governors, regional Federal Reserve banks, and member banks. Governors have a degree of independence, appointed for fourteen-year terms.
  • Main Tools of The Fed:
    1. Buying and Selling Treasury Securities: Influences the money supply.
    2. Setting Reserve Rates: Determines how much money banks must keep in reserve.
    3. Influencing Interest Rates: Affects the cost of borrowing money.

Goals and Actions of The Fed

  • Economic Stimulation: Lowering federal funds rate to encourage borrowing and spending.
  • Inflation Management: Aims to maintain moderate inflation, avoiding damaging economic extremes.
  • Crisis Response: Example includes lowering interest rates during the 2008 economic crisis to prevent a deep recession.

Challenges in Monetary Policy

  • Independence Concerns: Criticism over potential political pressures affecting The Fed's decisions.
  • Inflation Targeting Debate: Questions about the desirability and implications of aiming for a 2% inflation rate.
  • International Confidence: Despite criticisms, the U.S. dollar remains strong internationally, indicating trust in American monetary policy.

AP® Tip

Understand the difference between monetary policy (controlling money supply) and fiscal policy (government spending and taxation). These are commonly confused concepts.

Ideology and Social Policy

Health Care Reform in the United States

  • Historical Context: Medicare and Medicaid established in the 1960s and 1970s to provide health insurance to seniors, the disabled, and low-income Americans.
  • Growing Federal Role: Expansion of government’s involvement in health care, including Medicare's prescription drug benefit under President George W. Bush.
  • Health Care Costs: The U.S. had the highest medical care costs globally as of 2012, prompting calls for reform.

The Patient Protection and Affordable Care Act (ACA)

  • Key Provisions:
    • Employer and individual insurance mandates.
    • Medicaid expansion.
    • Creation of health-care exchanges.
    • Coverage for young adults up to age 26 on parents’ plans.
    • Protection for individuals with preexisting conditions.
  • Implementation Challenges: Issues with enrollment processes and insurers raising premiums or exiting the exchanges.
  • Legislative and Judicial Actions: Republican attempts to repeal the ACA were unsuccessful, but key provisions were upheld by the Supreme Court.

Ideological Divisions on Health Care

  • Liberal Perspective: Supports the ACA for expanding health care access, viewing health care as a public good.
  • Conservative Perspective: Opposes the ACA, particularly the individual mandate, viewing it as an overreach of government and preferring market-driven solutions.

School Choice and Education Reform

  • Voucher Programs: Proposals to use taxpayer money for private and religious school tuition, sparking debate over public versus private education funding and the separation of church and state.
  • Ideological Tensions: Reflects broader disagreements on the role of government in providing education and the balance between equality of opportunity and individual choice.

Key Ideological Differences

  • Democrats: Generally advocate for government intervention to ensure equality of opportunity in health care and education.
  • Republicans: Typically support free market solutions, emphasizing individual choice and responsibility.