LSN Govt. (Grade 9)

CHARLES COUNTY PUBLIC SCHOOLS

LSN Govt. (Grade 9) Social Studies

APEX Learning Packet

Weeks 5-6 (May 4 – May 15)

LSN Govt. (Grade 9)

Student: __________________________________________ School: _________________________________ Teacher: ___________________________________________ Block/Period: ___________________________

Packet Directions for Students Students should complete the following sections of the APEX American Government course. 8 Unit Overview: Public Policy Week 5 8.3 Lesson Overview: Economic Policy 8.3.3 Study: Economic Policy Learn about U.S. fiscal and monetary policies and how they affect the American economy. 8.3.4 Quiz: Economic Policy Take a quiz to assess your understanding of the material. Week 6 8.4 Lesson Overview: Foreign Policy 8.4.1 Study: The Workings of U.S. Foreign Policy Learn about the governmental roles and structures involved in creating and implementing U.S. foreign policy. 8.4.2 Quiz: The Workings of U.S. Foreign Policy Take a quiz to assess your understanding of the material.

LSN Govt. (Grade 9)

WEEK 5 8.3 - Economic Policy

Economic policy ensures that the U.S. economy remains strong. One of the basic goals of the United States government is to support a strong and stable economy. The government tries to create policies that ensure all citizens have access to the goods and services they want or need. To do this, the United States makes economic decisions about specific programs and about larger issues related to spending and taxation. All these decisions affect the lives of U.S. citizens. In this lesson, you will explore another major area of domestic policy: economic policy. In addition, you will learn about basic economic concepts, how the economic system of the United States operates, and how economic policy decisions affect the economy. Lesson Objectives

Describe the economic system of the United States. Describe the basic economic concepts of scarcity, opportunity cost, and supply and demand. Analyze how government actions affect the economy. Explain U.S. fiscal and monetary policy and how they affect the economy. Examine the economic and noneconomic costs and benefits of policy decisions.

LSN Govt. (Grade 9)

8.3.3 Study Guide: Economic Policy Use this study guide to answer questions about important concepts covered in this activity.

Define the following terms.

Terms Definition

business cycle

deficit

discretionary spending

due process

economic policy

federal budget

Federal Reserve

fiscal policy

gross domestic product

mandatory spending

monetary policy

progressive tax

LSN Govt. (Grade 9)

regressive tax

regulatory policy

surplus

Answer the following questions as you complete the study. 1. Complete the table to show what each of these economic indicators measures.

Gross domestic product (GDP)

Per capita GDP

Consumer price index (CPI)

Unemployment rate

2. Complete the table to describe the two types of fiscal policy.

Type of fiscal policy Methods of putting policy into action Impact on the economy

Increase economic growth

Limit economic growth

LSN Govt. (Grade 9)

3. Summarize the federal budget process by completing the diagram.

4. List the types of spending that fall into these categories. Discretionary: Mandatory: 5. List the main sources of tax revenue for the federal government.

LSN Govt. (Grade 9)

6. Explain why the national debt has risen steadily since the 1980s. 7. Explain how monetary policy differs from fiscal policy. 8. Complete the table to show how each monetary policy tool works.

Open market operations

Discount rate

Required reserve ratio

9. For each situation, give an example of a fiscal policy and a monetary policy solution.

a. Rapid investment during a boom period threatens to overheat the economy.

b. Layoffs lead to an economic slowdown.

a. Rapid investment during a boom period threatens to overheat the economy. Fiscal policy solution: Monetary policy solution:

b. Layoffs lead to an economic slowdown. Fiscal policy solution: Monetary policy solution:

LSN Govt. (Grade 9)

10. Describe three ways in which regulatory policy affects the U.S. economy.

In one or two sentences, summarize the "big idea" or main point of this study.

Economic Policy

LSN Govt. (Grade 9)

Every year, voters are asked to identify the policy issues they're most concerned about and that are most likely to affect their voting decisions. The economy and economic growth are always among the top issues reported. Politicians tend to agree, making economic policy one of the most important — and complicated — areas of public policy. However, there are major disagreements about what kind of policies to use. Any policy is bound to benefit some groups more than others, which makes battles over economic policy particularly fierce. In this activity, you will examine the formation of economic policy. You will also see how different policies affect the nation's economy. Measuring Economic Performance One of the ways the government decides its economic policy is by tracking economic performance. There are several important measurements for determining the health of the U.S. economy.

Gross domestic product: (GDP) measures the size of a country's economy. It's the monetary value of all goods and services produced in that country during a single year. GDP provides the big picture of the economy's health, and a change in the GDP shows how much the economy is growing or shrinking.

Unemployment rate: is the percentage of workers who have no work but are seeking employment. This rate provides a good way to measure the health of an economy. For example, when only 2 percent of people are out of work, the economy is doing much better than when the unemployment rate is at 10 percent.

Consumer price index: (CPI) is a measurement the U.S. government uses to show the average change in prices for goods and services over time. It's calculated by taking the average price of a selected group of goods and services, such as food, transportation, and medical care. A change in the CPI could indicate a shift in supply or demand or a change in consumer spending.

Per capita GDP: (GDP) is the average amount of GDP per person, which is determined by dividing GDP by the size of the population. This measurement is generally used to compare how well economies are performing relative to their size. Nations with a high per capita GDP have more active economies.

Fiscal Policy The U.S. government does much more than measure the economy. It also participates in the economy by taxing and by spending money. The decisions the government makes about taxes and spending are known as fiscal policy. Generally, the goal of fiscal policy is to promote a healthy, stable economy. When economic activity slows, the government works to improve growth. On the other hand, if economic growth is too rapid and unstable, the government works to slow it down. Such changes in fiscal policy can have a major effect on the business cycle. Fiscal Policy and the Business Cycle The business cycle: The business cycle is an economy's movement up and down, as measured by gross domestic product (GDP). The standard business cycle goes through four stages: slump, recession, recovery, and boom.

Slump: A slump is a drop in economic activity. This can result from layoffs or a rise in unemployment, which often leads to a drop in consumer spending.

Recession: A recession is a prolonged slump in economic activity. High unemployment keeps spending and investment low. And at the same time, businesses are reluctant to make investments or hire workers when they face a gloomy sales outlook.

Recovery: A recovery occurs when businesses begin hiring and making other investments. The unemployment rate drops, providing an upward surge in consumer spending that leads to further hiring and investment.

LSN Govt. (Grade 9)

Boom: A boom occurs when investments are being made quickly. Businesses take advantage of good conditions in order to earn more money, so they hire more workers and expand operations. Sometimes, though, the economic growth that occurs during a boom is not sustainable and leads to a slump.

Impact of taxation: Changes in tax rates affect GDP, because spending and investments change in response to tax cuts and tax increases. Tax rates tend to have a predictable impact on the economy, so the government can set a tax policy aimed at smoothing out the ups and downs in the business cycle, making a slump less deep. The government typically chooses between two options: tax cuts or tax increases.

Slump: When the economy begins the slump, the government might cut taxes. Doing so leaves more money in the hands of consumers and investors. Even with higher unemployment, spending will not drop as much as it would without a tax cut.

Boom: When the economy is moving toward a boom, the government might raise taxes. This approach prevents overinvestment that can lead to economic growth that is too rapid.

Impact of government spending: Spending is a large part of GDP, so increases and decreases in government spending have a direct impact on the economy.

Slump: The government might make up for a drop in consumer spending by increasing its own spending. This spending gives businesses an incentive to hire and invest, helping an economy avoid a recession.

Boom: When private spending and investment are going well, the government might choose to cut spending so that the economy does not grow too quickly and become unstable.

The Budget Process The government's fiscal policy is closely tied to the federal budget. During the budget process, the government projects how much money it needs to fund its activities. Those projections affect decisions about taxation and spending. Fiscal policy and budgeting are mainly the responsibility of the legislative branch, but the executive branch also plays an important role. The federal budget is set for a fiscal year (FY). The fiscal year begins on October 1 and is named for the year in which it ends. FY 2018, for instance, begins on October 1, 2017. The process for setting the budget begins a year and a half earlier, in the spring (in this example, spring 2016). The entire process, including planning and spending, takes over 30 months. Creating the Federal Budget 2016 March – May: The executive branch begins the budget process. Under the direction of the president, the Office of Management and Budget (OMB) sends guidelines to executive agencies, which they use to plan their next fiscal year budgets. June: During the spring and summer, agencies develop budget requests based on OMB guidelines. July: The OMB provides agencies with detailed instructions for their budgets. September: Agencies send the OMB their budget requests. October – December: The OMB evaluates agency requests and sets specific budgets. The OMB sends a detailed budget report to each agency. In December, agencies can appeal the budget before it is made public. 2017 February: The president announces the budget to the country and sends it to Congress.

LSN Govt. (Grade 9)

March – April: Congress takes the president's budget plan into consideration and works on a fiscal year budget resolution. This resolution is an outline for the overall budget. At the same time, the executive branch begins working on the 2019 budget. May – June: The House turns the budget resolution into about a dozen separate spending bills. These bills are evaluated in various committees before going to the full chamber for a final vote. The bills are sent to the Senate once they pass the House. July – September: The Senate works on spending bills that include both its own versions and the ones approved in the House. A conference committee may be needed to reconcile any differences between the House and Senate bills. Once both houses of Congress pass the final spending bills, the president signs them into law. October (which is represented by a circle with a star inside): The fiscal year begins on October 1, at which point the authorized spending can start. If Congress fails to pass full-year spending bills, a continuing resolution is needed to keep the government running on a temporary basis. 2017 – 2018 October 2017 – October 2018: The federal government spends the money authorized by law. This amount is not required to equal what the government collects in taxes. Types of Federal Spending The federal budget breaks down government spending into two main categories: discretionary spending and mandatory spending. Government programs that are required by law are considered mandatory and must be funded. All other programs and government activities are funded through discretionary spending. Mandatory and Discretionary Spending (FY 2015)

Mandatory spending 71%: Most government spending is on mandatory government programs. Examples of mandatory spending include programs like Social Security, Medicare, Medicaid, unemployment benefits, and benefits for veterans. Mandatory spending also includes interest payments for the government's loans.

Discretionary spending 29%: All funding for government programs that aren't required by law comes from discretionary spending. A large percentage of discretionary spending goes toward the military. This type of spending is also used to fund scientific research, education, housing programs, and environmental protection programs.

Government Spending and the Deficit Government spending funds thousands of programs and creates jobs to grow the economy. In general, the government has increased spending to prevent downturns in the business cycle or to create growth. As a result, government spending has increased over time. If the government's spending is less than its income, there is a surplus. If its spending is greater than its income, there is a deficit. Although government spending has grown, the tax rate has remained relatively low. Therefore, the government has operated mostly at a deficit since the second half of the 20th century. There was a brief period of surpluses in the late 1990s, but it was followed by even larger deficits. To cover these deficits, the federal government has been steadily adding to the national debt over this same period.

LSN Govt. (Grade 9)

Types of Federal Taxes In order to spend money, the government needs to have money. The primary way the government gets money is by collecting taxes. The government collects two types of taxes: progressive taxes and regressive taxes.

A progressive tax requires wealthier people to pay a larger share of their income in taxes than poorer people.

A regressive tax requires poorer people to pay a larger share of their income in taxes than wealthier people.

Progressive taxes Individual income tax: The individual income tax is a charge on money that a person earns. For individual incomes, the tax rate changes based on how much a person makes. The more money people make, the higher their income tax rate. In 2015, 47 percent of the government's tax revenue came from income taxes on individuals. Corporate income tax: The corporate income tax is a charge on the money corporations make. The more money a corporation makes, the higher its income tax rate. In 2015, corporate income taxes made up 11 percent of U.S. tax revenue. Estate tax: The estate tax is a charge on the wealth that is transferred after someone has died. When people inherit property or money, the government collects a tax on its value. In the United States, there are many exemptions to this tax, and only a fraction of the wealthiest estates are subject to it. Gift tax: The gift tax is a charge on wealth that is transferred from one person to another. In the United States, this tax applies only in certain cases. People are not required to pay taxes on gifts to their spouses, donations to charity organizations, or payments for school tuition or medical expenses. In addition, the gift tax applies only if someone receives more than a set amount from another person; in 2015, that amount was $14,000. Because of these exemptions, the gift tax usually applies only to wealthier people. Regressive taxes Sales tax: A sales tax is a charge that is added to the purchase price of goods or services. These taxes are paid by all consumers based on the value of their purchase. But in general, sales taxes take a higher percentage of poorer people's income, so they are considered regressive. Payroll tax: A payroll tax is a charge taken directly out of a person's paycheck, usually for a set amount per paycheck. In the United States, one example is the money withheld for Social Security. Payroll taxes take a higher percentage of the wages of low-income earners and are therefore considered regressive. User fee: User fees are charges that the government sets for specific services. There are many different types of user fees, including highway tolls, licensing fees, and visitor fees for national parks. These fees are paid by all people regardless of their income level. Excise tax: An excise tax is a charge that is included directly in the price of a good or service. Excise taxes are placed on cigarettes, alcohol, gasoline, air travel, firearms, and more. Consumers pay these taxes regardless of their income, so the taxes are considered regressive. Tariff: A tariff is a charge on international trade. The government places a tax on goods that are imported or exported. The businesses that buy or sell these goods usually pay the taxes and pass that cost on to consumers in the final price. Even though consumers generally pay these taxes indirectly, the taxes are considered regressive because they aren't adjusted based on a consumer's income level.

LSN Govt. (Grade 9)

How Taxes Affect the Economy The government needs taxes to fund its discretionary spending and mandatory spending. Without them, the government couldn't provide many of the essential services we rely on. But the government can't just tax everything; doing so would take away too much of people's spending money and weaken the economy. Instead, the government tries to create a balanced tax policy that mixes progressive and regressive taxes to maintain a healthy economy. Taxes can be used to influence consumption. For example, a high excise tax on gasoline might encourage people to drive less or use public transportation to avoid buying gas. A lower sales tax might encourage people to spend more money on luxury goods or services. Tax policy can also be used to incentivize certain kinds of behavior. For example, the federal government gives certain tax breaks to people who buy and own homes, which in turn makes people more likely to invest in a home.

Monetary Policy Monetary policy concerns the size and flow of the money supply, which has a direct influence over the business cycle. The larger the money supply is, the more money circulates. When money circulates quickly, the economy grows. When it circulates slowly, the economy slumps. The government affects the money supply by changing interest rates on loans to banks. If the interest rates are higher, there is less incentive to borrow money. And when less money is borrowed, less money circulates, which slows economic activity. On the other hand, when interest rates are lower, there is more incentive to borrow, so more money circulates and the economy grows. Tools of Monetary Policy The Federal Reserve is in charge of monetary policy. Called "the Fed" for short, this important institution was created by Congress in 1913 to ensure the health of banks and the economy. The Fed tries to smooth the ups and downs of the business cycle with three main tools: open market operations, the required reserve ratio, and the discount rate.

Open market operations: Open market operations involve the Fed's purchase and sale of Treasury bonds. The Fed trades a large volume of Treasury bonds every day. If the Fed sells more than it buys, money goes into the Fed's vaults, taking it out of the money supply. If the Fed buys more than it sells, money leaves its vaults and enters circulation, increasing the money supply.

Required reserve ratio: The required reserve ratio is the percentage of a bank's money that must be kept in its vaults at all times. This money does not circulate, so the money supply is smaller when the required reserve ratio is higher. The Fed sets this level to control the size of the money supply.

Discount rate: The discount rate is the interest rate the Fed charges for overnight loans. A bank that falls short of its required reserves at the end of the day has to take an overnight loan from the Fed. When the discount rate is high, banks try hard to avoid overnight loans. This means a bank will lend less of its deposits

LSN Govt. (Grade 9)

so that it meets its required reserves. If the bank is loaning less money, less money is circulating, and the money supply is reduced.

The Impact of Monetary Policy Changes Just as Congress and the president use fiscal policy to smooth out the business cycle, the Federal Reserve uses monetary policy to influence the economy.

Expansionary Monetary Policy When the economy is struggling, the Fed uses expansionary policies to increase the size of the money supply. With a greater supply of money, interest rates go down. A low interest rate stimulates investment. In turn, more investment leads to more hiring, which increases consumer spending.

Contractionary Monetary Policy When the economy is growing too quickly, the Fed uses its tools to push interest rates higher. This slows investment and prevents the economy from growing too quickly. Regulatory Policy Another way the U.S. government influences the economy is through regulatory policy, in which rules and regulations affect what businesses can and can't do. Regulatory policy ensures that consumers are treated fairly and all businesses have an equal chance at succeeding. The government sets regulatory policies in order to maintain competitive business practices and protect employees and customers.

Maintain competition: Regulatory policy helps prevent unfair business practices, such as monopolies. A monopoly occurs when one business has complete control over an industry and can set high prices because it has no competition. U.S. regulatory policy makes monopolies illegal, and the government has broken up companies to ensure that industries are competitive and prices can be set based on supply and demand. Regulatory policy actions that address the elimination of monopolies include the Sherman Antitrust Act and the creation of the Federal Trade Commission.

Protect employees: Regulatory policy helps protect workers by ensuring they are safe on jobsites and are paid a fair wage. Some regulatory policies set laws that require companies to meet health and safety standards for employees. Many of these standards are overseen by the Occupational Safety and Health Administration (OSHA). Regulatory policies like the Fair Labor Standards Act set a national minimum wage, which ensures that workers are paid fairly, and protect employees through overtime, equal opportunity, and child labor laws.

Protect customers: Regulatory policy sets business standards that protect the rights of customers. Consumer protections include the requirement that businesses disclose detailed information about product ingredients or materials and laws that prevent businesses from using untrue or misleading advertising. Consumer protection laws are often overseen by organizations such as the Food and Drug Administration and the Better Business Bureau.

LSN Govt. (Grade 9)

Quiz: Economic Policy

Question 1 of 10 Which step in the budget process do both houses of Congress control?

A. Both houses work on spending bills based on the president's budget.

B. Both houses propose a budget and send it to the president.

C. Both houses debate and approve the president's proposed budget.

D. Both houses send guidelines for the budget to federal agencies.

Question 2 of 10

What will most likely result from the event in the headline?

A. The economy will grow rapidly.

B. The economy will begin to slow down.

C. The economy's slowdown will be eased.

D. The slowing economy will begin an immediate recovery.

LSN Govt. (Grade 9)

Question 3 of 10 Which action does the executive branch take as part of the government spending process?

A. The president signs Congress's passed budget resolution.

B. An executive conference committee reconciles the House and Senate budgets.

C. The president allocates the federal government's discretionary spending.

D. The president writes spending bills for Congress to approve.

Question 4 of 10

Which situation most likely results when the government raises interest rates to banks?

A. The value of the currency inflates.

B. Economic activity slows.

C. The employment rate increases.

D. More people invest in the stock market.

Question 5 of 10

Which statement refers to Gross Domestic Product (GDP)?

A. The average household level of production increased 5 percent last year.

B. The American economy produced 15 percent more last year than the year before.

C. Fewer people were out of work in March than in February this year.

D. The cost of consumer goods declined slightly last year.

LSN Govt. (Grade 9)

Question 6 of 10

Under what circumstances would the government most likely raise taxes?

A. The economy is growing rapidly.

B. Consumer spending has decreased.

C. Unemployment is growing.

D. Government spending has increased recently.

Question 7 of 10

When would the government most likely increase its spending?

A. When consumer spending has increased

B. When interest rates have increased

C. When tax revenues have increased

D. When unemployment has increased

Question 8 of 10

Which scenario indicates that a contractionary monetary policy is needed?

A. Interest rates are increasing.

B. The money supply has increased recently.

C. The economy is growing rapidly.

D. Investment has been slowing.

LSN Govt. (Grade 9)

Question 9 of 10 Which diagram provides an accurate example of how the government uses open market operations?

A.

B.

C.

D.

Question 10 of 10 The federal government creates an agency that establishes and oversees guidelines surrounding the treatment of employees. This is an example of which form of policy?

A. Monetary policy

B. Foreign policy

C. Regulatory policy

D. Fiscal policy

LSN Govt. (Grade 9)

WEEK 6 8.4 - Foreign Policy

In today's interconnected world, foreign policy is more important than ever. The United States is a world leader, both politically and economically. Because the country occupies such an important place in the international community, the U.S. government develops foreign policy to work with other nations and respond to global developments. As the world has become more connected through trade, technology, and shared concerns, U.S. foreign policy has become increasingly important. In this lesson, you will examine the tools the U.S. government uses to implement its foreign policy. You will also explore the major foreign policy goals of the United States. Lesson Objectives

Describe the governmental roles and structures involved in creating and implementing U.S. foreign policy. Describe the tools used to carry out foreign policy. Explain the various influences on U.S. foreign policy. Explain how U.S. foreign policy influences other countries. Evaluate the goals of U.S. foreign policy. Analyze the role of national interest in shaping foreign policy.

LSN Govt. (Grade 9)

8.4.1 Study Guide: The Workings of U.S. Foreign Policy Use this study guide to answer questions about important concepts covered in this activity.

Define the following terms.

Terms Definition

diplomacy

diplomat

embargo

foreign aid

foreign policy

North Atlantic Treaty Organization

sanctions

United Nations

LSN Govt. (Grade 9)

Answer the following questions as you complete the study. Use the listed page numbers to find the information you need. 1. Describe the similarities and differences between foreign policy and domestic policy. 2. Complete the table to show what role each of these groups and individuals plays in the process of making foreign policy.

President

Assistant to the president for national security affairs

Director of national intelligence

Secretary of defense

Secretary of state

Vice president

LSN Govt. (Grade 9)

Chief of staff

National Security Council

Joint Chiefs of Staff

Congress

3. Explain why intelligence agencies are important to foreign policy makers. 4. Complete the table by describing each foreign policy tool and providing an example of how each one is used.

Tool Description Example

Diplomacy

Alliances

Economic means

Humanitarian aid

The military

LSN Govt. (Grade 9)

The Workings of U.S. Foreign Policy U.S. troops and diplomats are stationed around the world. American businesses operate in nearly every country. Global trade ties the U.S. economy with the economies of distant nations. U.S. dependence on foreign energy sources makes the unstable Middle East an American concern. And international terrorism poses a threat to Americans at home and abroad. Managing these many concerns is no easy task, but the U.S. government works hard to do so through its foreign policy. In this activity, you will examine the way foreign policy is made and the tools available to foreign policy makers. Foreign Policy versus Domestic Policy The U.S. government deals with other nations through its foreign policy. This includes making trade agreements, military alliances, and decisions about foreign aid. Because foreign policy involves other nations, it differs drastically from domestic policy, which is carried out within the United States. Comparing U.S. Domestic and Foreign Policy Domestic policy

Predictable: The outcome of domestic policy is often easy to predict. For example, a tax increase will reduce private spending.

Simple system: Domestic policy is formulated by executive agencies and then adopted by Congress. There is conflict, but the process is straightforward.

Centered on Congress: The creation of domestic policy tends to be a slow process. Multiple interests have to be accommodated, and deadlock is common. In addition, two different chambers have to agree on any bill.

Foreign policy

Unpredictable: The impact of foreign policy choices is difficult to predict. Mistakes are common because it's harder to predict how foreign governments will act or to identify the consequences of every action.

Complex system: Multiple agencies and individuals make decisions about foreign policy, and advisers often disagree. This kind of environment can create confusion.

Centered on president: The president exercises ultimate authority over foreign policy. This enables the president to fully consider the options and respond rapidly to changing needs.

The Foreign Policy Network Foreign policy is formulated, debated, adopted, and carried out almost entirely within the executive branch. As the nation's chief diplomat, the president is at the center of a large network of advisers and officials. Foreign Policy in the Executive Branch

President (circle): The president is the main figure in foreign policy and makes all the final decisions. Advisers and agency heads compete for the attention and support of the president.

Vice president: The vice president has no official role in making foreign policy, but recent presidents have used the vice president as a top-level adviser. The vice president can play an important role in policy debates by voicing alternative positions.

Chief of staff: The chief of staff is the president's main gatekeeper and political adviser. While political concerns are not supposed to drive foreign policy, every president pays attention to political advice when making decisions about foreign policy.

Director of national intelligence: The president receives a daily briefing from the director of national intelligence (DNI), who is responsible for overseeing the intelligence community, which includes agencies

LSN Govt. (Grade 9)

like the Central Intelligence Agency (CIA). This position was created after the September 11, 2001, terrorist attacks to more effectively coordinate information gathering.

Joint Chiefs of Staff: The Joint Chiefs of Staff (JCS) is the military counterpart to the NSC. Its members are all experienced military officers. They provide the president with input and advice and ensure that military efforts are coordinated among the different service branches.

Secretary of defense: The secretary of defense is second in command of the military after the president. The person occupying this position has control over the massive defense budget, which makes up around 20 percent of all federal spending.

Secretary of state: The president is the official head of state, but in practice, it is the secretary of state who represents the nation to the rest of the world on a daily basis. The secretary of state is the nation's top diplomat and an important policy adviser to the president.

APNSA: The president's main foreign policy adviser is the assistant to the president for national security affairs (APNSA), sometimes known as the national security adviser. The APNSA holds a daily briefing with the president and has access to the president 24 hours a day. This access gives the APNSA a powerful position.

National Security Council: The National Security Council (NSC) is the primary forum for the president to discuss foreign policy matters with his or her advisers. Heads of important agencies, and the vice president, are all members of this group.

The Departments of State and Defense Foreign policy is carried out by two main executive departments.

Department of State

The Department of State sends diplomats to nearly every country in the world. They work with diplomats from other nations to build or maintain good relations.

The highest-ranking diplomats are ambassadors, who are appointed by presidents to represent the U.S. government within a foreign government.

Department of Defense

The Department of Defense contains the military, as well as civilians who make policy and provide support services.

This department manages the nation's military activities and plays a major role in supervising the nation's security. It also employs more people than any other area of the government.

The Intelligence Community Information is crucial to good foreign policy. The intelligence-gathering operation of the U.S. government is vast and diverse. It consists of 16 agencies that are responsible for collecting and analyzing different types of information. These are some of the goals of intelligence agencies:

Providing information related to national security Warning about potential attacks or emergencies Helping manage international crises Providing information for military planning Providing information about other countries Acting covertly to serve national interests

One of the largest intelligence agencies is the Central Intelligence Agency, which provides national security information and analysis to policy makers in the executive branch.

LSN Govt. (Grade 9)

The Role of Congress

The executive branch may be deeply involved in foreign policy, but the legislative branch still plays a role. The Constitution divides foreign policy powers between the president and Congress. The president carries out most foreign policy functions, and Congress has certain powers to check the president. Congress has the power to ratify treaties, declare war, and set the budget. If Congress does not like a president's foreign policy, it can cut funding for certain programs. It also has the power to reduce the foreign aid budget so the United States is less involved in the affairs of other nations. In addition, the legislative branch has the power to determine what the executive branch looks like. Congress reorganized the national defense system after World War II, and it did so again after the September 11 attacks. During these periods of reorganization, Congress established the Joint Chiefs of Staff and the position of director of national intelligence to serve as important presidential advisers. Congress also created the Department of Homeland Security. Tools of Foreign Policy As you have seen, U.S. foreign policy is largely in the hands of the president. What tools does the executive branch use to carry out the president's foreign policy agenda? Five prominent tools, which you will learn more about in the coming pages, are diplomacy, economic influence, humanitarian aid, alliances with other countries, and military action. Diplomacy: Both the president and the secretary of state work with other nations to find peaceful solutions to global problems. The United States maintains embassies throughout the world to carry out diplomacy on a regular basis. The United States also works through international institutions like the United Nations. Economic actions: Working both alone and with allies and international institutions, the United States exerts economic influence on other nations. This influence can come in the form of foreign aid distributed by the State Department, or in the form of trade sanctions such as the U.S. embargo on North Korea. Humanitarian aid: The United States works with international aid organizations to support foreign countries in need. Often this need is caused by wars, severe droughts, or natural disasters such as hurricanes or earthquakes. Providing aid to these countries not only helps people but also allows the United States to generate goodwill toward America. Alliances: The United States is the most powerful nation in the world, but it does not have to handle international problems on its own. Allies frequently participate in military and economic operations. And the United States belongs to international institutions that serve as useful tools of foreign policy, particularly in the areas of trade and economic sanctions.

LSN Govt. (Grade 9)

Military interventions: The U.S. military, which is unparalleled in the world today, is one of the nation's most useful foreign policy tools. The president can use troops for a variety of purposes, including emergency relief, humanitarian missions, and combat against enemies. Diplomacy Diplomacy is a critical tool of U.S. foreign policy. The U.S. government runs over 300 embassies, consulates, and diplomatic missions around the world. Diplomatic outposts serve a variety of functions. They house diplomats who work directly with foreign governments. They have staff members who gather information about foreign countries and help policy makers, businesses, and citizens evaluate the global environment. They aid American travelers and American businesses. And finally, they issue visas for foreigners who want to visit or work in the United States. Maintaining connections with foreign powers is one of the most effective ways the Department of State builds goodwill for the United States around the world. The United States depends on diplomatic efforts to build these connections between the U.S. government and foreign governments — and between American society and foreign peoples. Economic Actions In addition to carrying out diplomatic functions, the State Department has a foreign aid budget. The purpose of foreign aid is to improve life in other countries by reducing poverty, expanding human rights, and spreading democracy. The United States can influence other nations through economic sanctions as well. Sanctions are a form of punishment for economic or political policies that the United States opposes. The purpose of sanctions is to pressure other nations by hurting their economies. Sanctions can include tariffs, trade limits, and embargoes. Embargoes are used only in the most extreme cases. The United States placed an embargo on Cuba in 1962 because of the communist takeover of that nation's government. Similar sanctions were placed on Iran in 1979 when a radical theocratic government took power. Treaties and Executive Agreements Diplomacy sometimes results in treaties between the United States and other nations. A treaty is similar to a law. It binds nations to behave in a certain way. Any treaty the president or secretary of state negotiates must be ratified by two-thirds of the Senate. But getting that many senators to approve a treaty can be difficult no matter what the issue. In 2012, for example, the Senate rejected a UN treaty to ban discrimination against people with disabilities. In order to bypass the ratification requirement, the president can sign an executive agreement instead of a treaty. While such agreements are not legally binding the way treaties are, the president can use them to achieve short-term goals, hoping the next president will also follow the agreement as though it were a treaty. Humanitarian Aid The United States also provides humanitarian aid to other countries, often in the form of foreign aid. The United States funds humanitarian aid missions around the world. For example, in 2017, it pledged over $500 million to support humanitarian efforts to address the needs of refugees displaced from conflicts in Myanmar and Syria. This aid was used to provide emergency food, shelter, and medical attention to refugees forced to flee their homelands because of violence. The United States also contributes to several international humanitarian aid organizations whose purpose is to help people in need.

LSN Govt. (Grade 9)

International Aid Organizations

Red Cross: The International Committee of the Red Cross (ICRC), commonly referred to as the Red Cross, was founded in 1863 with the goal of protecting human life and relieving human suffering. Today, the ICRC has over 17 million volunteers and staff working in over 190 countries to provide food and supplies to people in need. The ICRC is funded by voluntary donations from governments, including the United States. In 2017, the U.S. government contributed over $400 million to the ICRC. The United States also funds the American Red Cross, a subset of the ICRC, which assists people in need within the United States.

UNICEF: The United Nations Children's Fund, commonly known as Unicef, was created by the United Nations in 1946 to provide emergency food and health care to children in countries affected by World War II. Over time, the work of the organization has focused on addressing the needs of children and women in developing countries all over the world by providing access to clean water, sanitation, immunizations, and education. Unicef relies on private donations and funding from the member nations of the United Nations, including the United States. In 2017, the U.S. government donated over $360 million to Unicef.

International Rescue Committee: The United States supports the efforts of the International Rescue Committee (IRC), an organization that provides emergency aid and long-term assistance to those fleeing war, persecution, or natural disasters. The IRC was founded in 1933 by Albert Einstein and primarily focuses on the safety of refugees, as well as ensuring that refugees have access to health care, education, and a chance for future economic well-being. Recently, the United States supported the IRC's efforts to provide aid to the people of Yemen, where violent conflict created a refugee crisis that has affected over 10 million people.

International Alliances In global politics, cooperative efforts usually have a better chance of succeeding than the efforts of one nation alone, no matter how rich and powerful that nation might be. For the United States, working with other nations also reduces costs and provides legitimacy for U.S. actions. The United States is a member of many different alliances and international organizations, including the United Nations and the North Atlantic Treaty Organization. Important International Alliances

World Trade Organization: The United States has signed free trade agreements with many nations. These agreements limit or eliminate tariffs and other trade restrictions. The United States is also a member of the World Trade Organization (WTO), which promotes free trade around the world and helps resolve trade disputes among its members.

North Atlantic Treaty Organization: The United States is a leading member of several military alliances that aim to defend themselves using the combined military power of their members. The most important U.S. alliance is NATO, which joins the United States with over two dozen other nations to protect Europe and North America. The United States also belongs to the Rio Treaty Organization to promote security throughout the Western Hemisphere.

International Monetary Fund and the World Bank: These international organizations give economic aid to poor nations to improve economic performance and reduce poverty. The United States was a founding member of both organizations, which were established after World War II.

United Nations: an international organization that was formed after World War II to promote cooperation on issues facing every nation in the world. The UN is not a world government. It has no military and no police, and it cannot collect taxes. Instead, member nations provide voluntary dues, which fund agencies that work on economic, social, health, and human rights issues.

LSN Govt. (Grade 9)

Military Intervention The most drastic form of foreign policy intervention is the use of military force. Military power is useful for defeating enemies in combat, but the United States uses its military in other ways as well. The military handles emergency relief, humanitarian aid, and peacekeeping missions. It also helps stabilize volatile regions of the world and build democratic institutions. Today, no other nation can compete with the U.S. military, but this does not mean the United States can impose its will on the rest of the world. Military solutions are often unsuccessful. Summary: The Workings of U.S. Foreign Policy

The United States is connected to the rest of the world in many different ways. Foreign policy is a complex undertaking. In the United States, foreign policy is largely in the hands of the president, who serves as both chief diplomat and commander in chief for the nation. The president receives advice and assistance from many different groups and individuals, including the departments of State and Defense. The State Department is in charge of diplomacy and foreign aid, while the Defense Department controls the military. The world today poses many foreign policy problems for the United States — as well as a wide range of opportunities. The United States uses economic tools, military power, humanitarian aid, alliances, and international institutions to pursue its goals. Foreign policy outcomes are uncertain, but foreign policy makers share the goals of protecting the nation and advancing U.S. interests around the world.

LSN Govt. (Grade 9)

Quiz: The Workings of U.S. Foreign Policy

Question 1 of 10

Which action is a part of the president's role in foreign policy?

A. Declaring war

B. Managing the military budget

C. Making final decisions

D. Ratifying treaties

Question 2 of 10

Which title best completes this job description?

A. Intelligence agent

B. Foreign service worker

C. Ambassador

D. Secretary of defense

LSN Govt. (Grade 9)

Question 3 of 10

What conclusion about the use of U.S. military power would be most logically drawn from the experience of the Vietnam War?

A. After a military victory, the defeated country may remain unstable and dangerous.

B. The roles of military personnel and diplomatic workers have begun to overlap.

C. The support of the American people is not necessary for military victory.

D. A stronger military does not guarantee victory.

Question 4 of 10 Which action is an example of the United States using economic influence as a tool of foreign policy?

A. Sending troops into a country to support a democratic revolution

B. Refusing to trade with a country until it improves its human rights record

C. Appointing an ambassador to represent U.S. interests in a country

D. Creating an alliance with a country for mutual protection from invasion

Question 5 of 10 Which statement would most likely be made by a supporter of sanctions as a tool of foreign policy?

A. Developing relationships with other government leaders is essential.

B. We can get countries to change their policies by hurting their economy.

C. It is inappropriate to limit the freedom of U.S. businesses in any way.

D. The best way to influence foreign governments is to provide military advice.

LSN Govt. (Grade 9)

Question 6 of 10 What is the purpose of the International Monetary Fund and the World Bank?

A. To promote democracy

B. To help poor countries

C. To increase U.S. power

D. To provide disaster relief

Question 7 of 10 Which statement is true of a treaty?

A. It legally binds the nations that agree to it.

B. It must be ratified unanimously by the U.S. Senate.

C. It has to be approved by the United Nations.

D. It applies to governments but not to ordinary citizens.

Question 8 of 10 What foreign policy goal does the United States advance by participating in the United Nations?

A. Improving trade with its close neighbors

B. Helping poor nations develop economically

C. Promoting military defense of itself and its allies

D. Cooperating with other nations to solve global problems

LSN Govt. (Grade 9)

Question 9 of 10 Which option best completes the table?

A. The WTO

B. NATO

C. NAFTA

D. The United Nations

Question 10 of 10 Which option best completes the diagram?

A. The country creates alliances with others in the region.

B. More prosperous citizens have money to spend.

C. More educated citizens are more likely to create a democratic government.

D. The country's government discovers a new natural resource.