Download 1. What is Public Policy?

AP - Honors Government; Federal Government Policies
The Policymaking Process
Janda; Chapter 17
1. What is Public Policy?
a. All of the things a government does or decides to do.
b. A general plan of action adopted by the government to solve a social,
economic, or foreign problem or issues.
2. Types of Policies
a. Distributive; policies that confer a benefit on a institution or group.
 Ex: appropriations (spending) bills for agencies; social security; etc.
b. Re-distributional; policies that take government resources from one sector
of society and transfer them to another sector.
 Ex: progressive taxation; minimum wage; welfare & food stamps, etc.
c. Regulatory; government actions that control certain business activities,
markets or functions.
 Ex: pollution control - air quality standards; building codes; etc..
d. Policing / Enforcement; government actions that control certain social
behaviors, punish law breakers, and implement policies.
 Ex: speed limits, murder, assault, theft, kidnapping, DUI, drugs, etc.
3. The Policy Making Process
a. Problem or Issue Identification / Agenda Setting
 Issue – a general area of concern; something that is going on that has
an effect on people; a problem needing attention.
 Agenda Setting – the stage of policymaking during which problems or
situations get defined as political issues to be addressed by policy.
b. Policy Formulation; the policymaking step in which the issue is clearly
defined and formal proposals are developed. (bills, proposed rules, etc.)
c. Policy Adoption; the passage of formal proposals by authorized process
 Statutory Law; legislative branch law – bill to signing.
 Administrative Rule; executive branch law – rule to approval.
 Case Law; judicial branch law – interpretation of laws and rules.
d. Policy Implementation; the process of putting adopted policies into
operation; traditionally an executive branch function.
e. Policy Evaluation; the policymaking step of determining how well a public
policy is working; analysis of the efficacy of the policy including
unanticipated outcomes, possible changes, improvements, etc..
4. General Areas of U.S. Public Policy
a. Economic Policy; decisions to control or influence the economy.
b. Domestic and Social Policy; decisions to influence or regulate society.
c. Foreign Policy; decisions on how to interact with other nations.
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U.S. Economic Policy
Janda; Chapter 18
1. Theories of Economic Policy (U.S.)
a. Laissez-Faire Economics; an economic theory based on free markets and
very little government intervention in the economy; ‘hands off the economy.
 AKA; Classical Economics; government out of the economy.
 Adam Smith;‘invisible hand’, Frederich Hayek; free market efficiency
 Free markets are efficient and self-regulating when left alone.
b. Keynesian Economics; an economic theory based on pro-active government
intervention in the economy to smooth business cycle fluctuations.
 Increase government deficit spending during recessionary periods.
 John Maynard Keynes; increase Aggregate Demand by spending.
 Business cycle => a tracking of Real GDP over a long period of time.
 Real GDP (Y) = C + I + G + (X-M)
GDP (Y) =
GDP (Y) =
C+ I+
C+ I+
G + ( X-M)
G + ( X-M)
c. Supply-Side Economics; an economic theory based on reducing taxes (costs)
and regulations on businesses to encourage economic growth.
 AKA; Reganomics; business profits will ‘trickle down’ to the masses.
 Lower taxes => lower costs => lower prices => less unemployment => economic growth
 Government deficits are created with lower tax revenues.
2. Monetary Policy
a. Definition - federal government regulation of the money supply to impact
the economy; controlling the growth of the money supply.
b. Short term policy decisions that take minutes or days to see results.
c. The Federal Reserve System
 The Fed is responsible for controlling the supply of money.
 The Fed was created in 1913 by Congressional Act.
 The Fed has twelve (12) Federal Reserve District Banks.
 The Federal Reserve District Bank that services Idaho is located in
San Francisco, California.
d. Changing the Supply of Money: increasing or decreasing the amount of
money in the economy;
 FOMC Operations; Buying or Selling Treasury Securities


"Fed" Sells Treasury Securities => Money supply decreases
"Fed" Buys Treasury Securities => Money supply increases


"Fed" Raises the Discount Rate => Money supply decreases
"Fed" Lowers the Discount Rate => Money supply increases


"Fed" Raises the Reserve Requirement => Money supply decreases
"Fed" Lowers the Reserve Requirement => Money supply increases
 Increasing or decreasing the Discount Rate of Interest
 Increasing or decreasing bank Reserve Requirements
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3. Fiscal Policy
a. Processes the government uses to control the economy through taxing and
spending policies.
b. Long term policy decisions that take years to see results.
4. The Federal Budget
a. Budget; a record of income and expenses for a set period of time.
 Balanced budget is when;
income =
expenditures
 Budget deficit is when;
income <
expenditures
 Budget surplus is when;
income > expenditures
b. The Federal Budget Process
 Budgeting process begins & ends with the executive branch.
 Budgeting determines who gets what $$.
 Budget items (appropriations) are made into bills that use the same
process as other statutory bills; see below.
President & OMB
develop budget plan
Final Budget recommendation, by
agency, to full Senate floor for vote.
Final Budget recommendation, by
agency, to full House floor for vote.
President submits Final
Budget to Congress
Joint House of Representatives &
Senate Committee meets to hear
Gov’t Agency Budget requests.
Proposed budgets are set for each
Governmental Agency.
5. Federal Budget for 2015
Revenue
Presidential Action on Final
Budget from Congress
President Rejects;
Budget Sent Back
President Accepts;
Budget Enacted
( www.concordcoalition.org/issues/indicators/federal-budget-pie-charts )
Spending
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6. Budget Deficits vs. the National Debt
a. The U.S. Budget Deficit
 The yearly amount the United States overspends.
 The Federal Government fiscal years starts October 1st of each year.
 FY 2010: - $ 1,294,373,000,000.00 or $ 1.29 trillion
 FY 2011: - $ 1,299,593,000,000.00 or $ 1.30 trillion
 FY 2012: - $ 1,086,963,000,000.00 or $ 1.09 trillion
Source: www.whitehouse.gov/omb/budget/Historicals
b. The National Debt
 The total amount of public debt the U.S. has accrued since 1776.
 All budget deficits and surpluses combined.
 It takes 31,700 years to equal one trillion seconds.
c. The Current National Debt
 $ 19,888,000,000,000.00 OR 19.88 trillion dollars
 Approximately $ 61,000.00 per person in the U.S.
 Growing at nearly 2.55 Billion dollars per day.
7. Tax (def.) a charge levied on people or property, collected by the government,
to meet public needs and pay for government.
(def.) money collected by the government for public use.
a. In the Constitution: Article I, Section 8, Clause 1
Congress has the power, “to lay and collect Taxes, Duties, Imposts
and Excises, to pay the Debts a provide for the common Defense and
general Welfare of the United States”
b. Limits on Tax Power:
 Taxes may only be levied for public purposes.
 No taxes on articles exported from any state.
 Direct taxes must be fairly ( equally ) apportioned.
 All federal tax rates must be the same rate for ALL states.
 ** The federal government CANNOT tax any state.
8. Principles of Taxation
a. Ability-to-Pay: those individuals who are most able to pay should pay
the most; both in amount and percentage.
 The more you can afford the tax; the more you pay in tax.
 Ex: federal income tax, state income tax, property taxes ???
b. Benefits Received: those individuals who benefit from what the tax provides
should pay the tax.
 The more you use a service; the more you pay for the service.
 Ex: gasoline tax, bridge or highway tolls, park fees, etc..
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9. Tax Levees
a. Proportional Tax: a tax that collects the same tax percentage on individuals
regardless of income;
Income up => Same Tax %
 Effect: proportional taxes have a regressive effect; hurt low income
 Ex: state sales tax (6% on all purchases in Idaho)
b. Progressive Tax: a tax that collects a higher tax percentage on individuals
as income increases; Income up => Tax % up
 ** Differences between tax bracket percentages determine the effect.
 Effect: Can be progressive, proportional or regressive due to rates.
 Ex: federal income tax, state income tax.
c. Regressive Tax: a tax that collects a lower tax percentage on individuals as
income increases; Income up => Tax % down
 ** Any time the tax collects the same dollar amount per person.
 Effect: regressive taxes have a regressive effect; hurt low income.
 Ex: tolls, fees, parking, vehicle registration, camping, etc..
10.Solutions to Our Debt & Deficits
a. Possible Spending Fixes
 Domestic Programs; cuts to current U.S. programs,;
 Safety Net Programs
 Military
 Health Care
 Social Security
b. Possible Revenue Fixes
 Existing Tax Changes
* Estate Taxes * Investment Taxes * Bush Tax Cuts  New Taxes / Reforms
* Millionaire Tax * Eliminate Tax Loopholes * National Sales Tax -
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U.S. Social Policy
Janda; Chapter 19
1. U.S. Social Policy
a. Role of Government in Social Policy
 Public vs. Individual; Should government OR people provide/decide?
 Public vs. Charity; Should government OR organizations help?
 National vs. Local; Should policies be regional or universal?
b. History of Social Policy
 Early social programs existed thru churches, families and neighbors.
 Early national government social programs began in the military,
providing aid to disabled war veterans.
2.
Types of Social Welfare Programs
a. Income Redistribution: fiscal policies to assist individuals in need.
 Minimum wage; a minimum hourly wage that employers must pay.
 Progressive taxation; increasing tax % as income increases.
b. Entitlement Programs: programs that provide benefits to all citizens who
meet eligibility requirements. Benefits based on qualifying criteria.
*means-tested entitlements; established criteria to receive benefits.
 Unemployment Insurance; money if you get laid off or lose your job.
 Disaster Relief; money or loans if you are affected by natural disaster.
 Disability Payments; money if you are or become disabled.
c. Social Insurance Programs: programs where eligibility is based on
contribution to government via payroll deduction or employer.
 Social Security; income for retired, disabled, minors, etc..
 Medicare; health insurance for retired, disabled, minors, etc..
 Worker’s Compensation; insurance for injuries or death at work.
d. Public Assistance Programs: programs to which recipients must qualify
for benefits based on need to receive benefits; poverty line %
 Food Stamps; SNAP – Supplemental Nutrition Assistance Program.
 Transfer Payments/Welfare: TAFI – cash payment for bills, food, etc.
 Payments to Blind, Aged, Disabled; cash payment for bills, food, etc.
 Government Housing Subsidies; full or partial rent assistance.
 Aid to Families with Dependent Children; now TANF – Temporary
Assistance to Needy Families; food, housing, utilities, etc..
 Medicaid; healthcare coverage for low income; below poverty line.
e.
Eliminating Causes of Poverty or Economic Disadvantage:
 Affirmative Action; government programs that give advantage to
specific groups based on race, gender, ethnicity, etc..
 Educational Grant Programs; government education programs to
assist low income people with post-secondary education or training.
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3.
Social Policy Areas
a. Healthcare: universal health insurance to ensure everyone has both access
to adequate healthcare institutions; Medicare; for elderly healthcare.
 Increasing Costs: higher medical costs, longer treatment options.
 Increasing Participation; more people retiring (boomers); more need.
b. Education: universal standards of educational performance, attainment,
and competency for students, teachers and school districts.
 State or Federal?; Who decides education policy? 10th Amendment.
 Economic Growth; education is a proven driver of economic health.
c. Crime: complex pattern of state and federal laws which overlap, intertwine
and sometimes conflict; 10th Amendment.
 Decreasing Rates; violent crime rates decreasing;
 Still significant crime bias based on race, ethnicity and SES.
d. Protecting Social Norms / Regulating Morality:
 Role of Government?; Should the government try to control social
norms, regulate social behaviors or punish social deviants?
 Moral Agendas; Public policies designed to define social norms
* Same sex marriage; equal rights for LGBTQ
* Drug, tobacco and alcohol policies; restrictions and penalties
* Death penalty; capital punishment & methods
* Prostitution; legalization and regulation
* Gambling; legalization, regulation and enforcement
* Abortion;
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U.S. Foreign & Defense Policy
Janda; Chapter 20
1. U.S. Foreign & Defense Policy
a. Foreign Policy
 All of the things we do in relation to other countries.
 Under the direct control of the President.
 Part of the
executive branch; part of the Department of
State
; headed by the Secretary of State
b. Foreign Policy Philosophies
 Isolationism: a U.S. policy on non-intervention in the affairs of other
nations; concentration of efforts in domestic affairs.
 Internationalism: a proactive approach to dealing with issues of other
nations; concentration on prevention, diplomacy.
c. U.S. Vital Interests
 Strong Military: technologically advanced, ready to perform.
 Free Trade and Economic Growth: decreasing trade barriers and
encouraging emerging economies and growth.
 Strong Alliances: maintaining successful, past relationships.
 Forging New Relationships: forming new agreements with nations not
previously (historically) held; Russia and China.
 Quelling Hostilities: stopping aggressive behaviors before they erupt
into long-term conflicts; United Nations.
2. Primary U.S. Foreign Policy Goals – 2008
a. Winning the War on Terrorism
 Afghanistan – opposing countries that harbor / recruit terrorists.
 Sharing technology used to find and stop terrorist acts.
b. Controlling Weapons of Mass Destruction
 Accounting for materials used to produce weapons (nuclear & bio).
 Discouraging new nuclear nations; trade embargos, restrictions.
c. Promoting U.S. Trade
 Solidifying and growing existing trade with established partners.
 Finding new trading markets for U.S. products.
d. Finding Peace in the Middle East
 Addressing concerns of both Palestinians and Israelis.(compromise)
 Creation of Palestinian state with recognition of Israel’s existence.
e. Strengthening Democracy in Former Soviet Union
 Encouraging democratic processes in former Soviet nations.
 Diplomatic measures to facilitate justice and rule of law.
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3. The Foreign Policy Bureaucracy
a. State Department
 The executive branch department in charge of foreign policy.
 The current Secretary of State: Rex Tillerson; previous John Kerry.
 Diplomats and Ambassadors: Official representatives of the United
States, working, traveling, or living in a foreign nation.
 Diplomatic Immunity: Diplomats cannot be tried under foreign law.
b. National Security Council
 Advisors to the President on all security, foreign threat matters.
 On site at the White House; part of the EOP; immediate access.
c. Central Intelligence Agency
 Executive agency responsible for gathering foreign intelligence.
 Often works with FBI, NSC, and Homeland Security.
d. The Department of Defense
 Executive department handling military matters, all over the world.
e. Department of Homeland Security
 Newest executive department in charge of domestic, foreign threats.
4. A Brief History of U.S. Foreign Policy Before WWII.
a. For the first 150 years the U.S. practiced isolationism.
b. The Monroe Doctrine - Europe stay out of western affairs.
c. The Good Neighbor Policy - the U.S. will protect and defend its western
hemisphere neighbors; North and South America.
d. The Open Door Policy in China - New relations/trade with China.
e. WWI - U.S. forced into war; not an original partner in war effort.
f. WWII - Pearl Harbor attack; U.S.
 Collective Security: there is strength in numbers and strong alliances
discourage aggressive behaviors.
 Deterrence: military strength discourages aggressive behaviors; T.R.
walk softly and carry a big stick.
5. A Brief History of U.S. Foreign Policy Since WWII.
a. The Cold War - undeclared, proactive action to stop Communism
b. The Truman Doctrine – U.S. must retain presence in key areas.
 Containment: stopping the spread of Communism, especially in
strategic locations; oppose Communist assistance.
c. East & Southeast Asia
 The Korean War: U.S. helps in Korean civil war.
 The Vietnam War: U.S. long-term involvement in civil war.
d. Cold War Ends – Fall of the U.S.S.R.official fall; 1991.
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6. Current Foreign Policy Issues
a. Middle East (Israel & Palestine)- establishing a homeland for Palestinians
in their ancestral homeland while retaining the nation of Israel;
division of current area.
b. Afghanistan - protecting against countries that promote groups who
practice terrorism or harbor terrorists.
c. Syria - removing oppressive leader, eliminating chemical weapons,
providing stability to the region.
d. Middle East (Political Unrest)- supporting democracies in mid-eastern
nations; promoting peaceful resolutions to problems or political
issues. Iran, Iraq, Syria, Libya, Yemen, Somalia, Egypt etc…
7. Foreign and Defense Policy Options
a. Foreign Aid – economic support; money, goods, personnel, etc.. provided to
a foreign country by the United States.
 agricultural products to meet nutritional needs; drought, famine, etc..
 medical supplies and personnel; natural disasters,
 equipment and supplies; after natural disasters,
b. Economic Sanctions - financial and/or trade related punishments to ensure
compliance with certain terms; ex: ending nuclear programs.
c. Military Intervention - partial to full military action to assist other nations
or depose foreign leaders.
 can be used in conjunction with other methods.
a. Regional Security Alliances - agreements or participation based on
geographic features, ASEAN, NATO, etc..
 Collective Security: the concept that groups are stronger than
individuals; safety in numbers; gang-like behaviors.
 NATO: North Atlantic Treaty Organization; 22 nations currently are
members; Mess with one – mess with all.
 New tendency over past 20 years to make short-term alliances.
b. The United Nations
 Purpose: an international Congress designed to resolve inter-national
conflicts in a peaceful, efficient manner.
 Organization: Six different committees known as organs. Each has its
own area of influence and authority.
 Conventional Diplomacy:
 Fact Finding Missions:
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8. Making Foreign Policy
a. Public Opinion b. Interest Groups c. Foreign Nations d. Political Parties e. Congress 9. Defense Policy Considerations
a. All Voluntary Military b. Women in the Military c. Gays in the Military d. Defense Spending / Budgets 
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