Download Unit 6 Review

Unit 6 Review
20 Multiple Choice
1 FRQ
The Policymaking Process
Every policy has a unique history, but each
generally goes through five basic steps.
1.
2.
3.
4.
5.
Agenda Setting
Policy Formulation
Policy Adoption
Policy Implementation
Policy Evaluation
Public Policy
Making a Decision
• Politics a process of settling disputes about
who benefits and who ought to benefit
• People prefer programs that provide benefits
at low cost
• Perceived distribution of costs and benefits
shapes the kinds of political coalitions that
form but not who wins
Public Policy
Types of Policy Politics: Breakdown
Costs
Benefits
Majoritarian
Large group
Large group
Interest Group
Small Group
Small group
Client
Large group
Small group
Entrepreneurial
Small group
Large group
Public Policy
Fiscal Policy
Managing the economy by the use of tax and
spending laws.
• Where the Money Comes From
– Federal Income Taxes
– Social Insurance Taxes
– Borrowing
– Other taxes
• Where the Money Goes
– Entitlement programs
– National defense
– National debt
Economic Policy
Monetary Policy
Managing the economy by altering the
supply of money and interest rates
• Monetary policy is the
government’s control of the money
supply
– Too much money in system leads
to inflation (devaluation of dollar)
– Too little money in circulation
leads to deflation
Economic Policy
Economic Theories & Political Needs
•
Monetarism – inflation occurs when there is too much
money chasing too few goods;
–
Govt reacts by cutting amount of $ in circulation -triggers
recession
Monetarists advocate increase in money supply about equal to
the rate of economic growth (slow and steady wins the race)
–
•
Keynesianism – government should create right level of
demand
–
Too little = production declines
•
–
Too much = prices rise, shortages occur
•
•
Govt should spend more to stimulate econ
Govt should tax more or cut spending
Planning – free market too undependable to ensure
economic efficiency; therefore government should control
it
–
Government should have ability to set prices and wages to
create healthy and stable economy
Economic Policy
•
Economic Theories & Political Needs
Supply-side tax cuts – need for less government
interference and lower taxes (opposite of planning
advocates)
–
•
Cut taxes people will save and invest greater econ
productivity will increase tax revenue (and people won’t feel
the need to “cheat” on their taxes!)
Ideology and theory: people embrace an economic theory
partly because of their political beliefs
–
–
–
•
Conservative: Monetarism, Supply-side (less govt)
Liberal: Keynesian (more programs)
Socialist: economic planning
“Reaganomics”: Combination of monetarism, supply-side
tax cuts, and domestic budget cutting
–
–
Slowed govt spending on most programs (but raised military
$$)
Cut income taxes
= big deficits!! But the economy was stimulated!
Economic Policy
The Machinery of Economic Policy Making
•
The Fed (Federal Reserve Board)
– 7 members, Pres appointed-Senate confirmed, 14yr
terms
– Regulates the supply of money and interest rates
(=monetary policy)
– Independent of Pres and Congress (though
sometimes questionable)
•
Congress
– Most important! Creates the nation’s tax and
spending laws (= fiscal policy)
Economic Policy
Social Policy: An overview
• Government’s responsibility for the welfare of its citizens
remains controversial and disputed today
• Generally 2 types of programs:
– Majoritarian- benefits almost everyone
• Ex. Social Security, Medicare
– Client- benefits only a small number
• Ex. Medicaid, Food Stamps
• Means tested- must fall below a certain income level to qualify
• Entitlement programs: government-sponsored programs
providing mandated benefits to those who meet eligibility
requirements
Social Policy
Client welfare programs: AFDC
• Problems:
– States complained about federal regulations
– Public opinion turned against program
• Corruption
• Weakened the family (got more money for more kids)
– Composition of program participants changed
• 1970: half of women were widowed/divorced
• 1994: only 1 quarter, the rest never married
• Also, 2/3 of women were on for 8 years or more!
• Temporary Assistance to Needy Families (TANF) 1996
– Stricter requirements and limits on how long families could
collect
– Lowered welfare caseload by 60%
Social Policy
Pros and Cons: Client politics
• Programs pass if cost to public not perceived as
great and client considered deserving
• Americans believe today that able-bodied people
should work for welfare benefits
• Americans prefer service strategy to income
strategy (give service/training rather than money)
– Charles Murray: high welfare benefits made some
young people go on welfare rather than seek jobs
– No direct evidence supports Murray
Social Policy
Checks on President’s Power
• Political rather than constitutional
• Congress controls the $$$
• War Powers Act of 1973- restricts the president
– If Pres commits troops he must report it to Congress
within 48 hours
– Only 60 day commitment w/o declaring war
– Previously, Congress could use legislative veto to bring
troops home
 Has had very little influence, politically impossible
(Congress will of course support successful
military action)
Military/Foreign Policy
Effects of War Powers Act
• Congress rarely invokes it
– Ford, Carter, Reagan, Bush, Clinton all sent troops
w/o authorization
• Politically impossible
– Congress wouldn’t challenge successful military
action (even Vietnam)
• Constitutionality is questionable (so they don’t
push it)
Military/Foreign Policy
Structure of Defense Decision Making
• National Security Act of 1947- created Dept of
Defense
– Headed by Sec. of Defense (must be civilian)command authority over defense on behalf of pres
– Sec. of Army, Air Force, Navy, (also civilians)
• manage daily functions
– Joint Chiefs of Staff (military)
• Branches of military kept separate- Why?
– Fear if unified they would become too powerful
– Desire of services to preserve autonomy
– Inter-service rivalries intended by Congress to increase
info
Military/Foreign Policy
Majoritarian Politics
Clean Air Act 1970- tough restrictions on pollutants
from automobiles
• Started as entrepreneurial- public w/ media support
demanded changes
• Small provision of law said states would have to
restrict use of cars if pollution problem persisted
– Huge popular opposition, efforts failed (Congress and EPA
backed down)
• Consumers, auto industry, unions objected
• Loss of horsepower, competitiveness, jobs
• Clean Air Act revived in 1990 w/tougher restrictions,
but a 20 year deadline
• Most current laws target particular industries
Environmental Policy
Majoritarian Politics
• When people believe costs are low:
– National Environmental Policy Act 1969 (NEPA)
• Required Environmental Impact Statement (EIS) for any
project “significantly affecting human environment”
• Overwhelming support, but caused lots of lawsuits and
delays
• When people believe costs are high:
– Increase in gas tax
– Most would pay, most would benefit, but benefits
not obvious
• More accepted if benefits concrete, like highways, bridges,
etc
Environmental Policy
Good to Know
• Understand the current implications of policy
initiatives…especially social.
• Look out for graphs!
• Know examples of environmental policy