The Text Gives Two Views of How Democracies Handle Foreign

question 51

Essay

The text gives two views of how democracies handle foreign policy. One says that democracies are deficient because they are slow to react; yet when they do finally react, they overreact. The other view says that governments accountable to their citizens through the ballot box are restrained by those citizens from extreme choices such as initiating conflict. Examine the United States' response to terrorism, both before and after September 11th, in light of both viewpoints.

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Definitions:

Crowding-out Effects

The phenomenon where increased government spending leads to a reduction in private sector spending.

Supply-siders

Supply-siders are economists or policymakers who believe that reducing tax rates and regulatory barriers to production and investment can stimulate supply, leading to economic growth.

Aggregate Supply

The total supply of goods and services that firms in an economy are willing and able to produce at different price levels during a specific time period.

Automatic Stabilizers

Changes in fiscal policy that stimulate aggregate demand when the economy goes into a recession without policymakers having to take any deliberate action