| Chapter 17: Domestic Policy |
| America at Odds |
| Mr. Barclay |
| May 11, 2000 |
| The Policymaking Process |
| Public Policy |
| Is a government plan or course of action taken in response to a political issue or to enhance the social or political well-being of a society. |
| The stages of Pubic Policy |
| (1) Agenda Setting: |
| Consists of getting an issue on the political agenda. A political agenda is a list of issues to be addressed thru govt. action. |
| The Stages of Public Policy |
| (2) Policy Formulation and Adoption: |
| The President, members of Congress, Admin. Agencies, and interest group leaders typically are the key participant (or "stakeholders") in developing proposed legislation. |
| (3) Policy Implementation: |
| Usually requires the cooperation of the federal government and state and local governments. Also requires outside support (the courts, administrative agencies) |
| The Stages of Public Policy |
| (4) Policy Evaluation: |
| Groups both inside and outside the government evaluate the policy. |
| Feedback can sometimes reveal a failed policy. |
| This may lead to a modified or even completely new policy. |
| Social Welfare Policy |
| Definition: |
| Consists of all government actions that are undertaken to give assistance to specific groups, such as the aged, the ill, or the poor. |
| Social Welfare policy is often implemented through income redistribution. |
| Examples of Social Welfare Policy: |
| Social Security and Medicare: |
| Programs that are essentially compulsory savings financed from payroll taxes levied on both employers and employees. |
| Medicare is paid for by the federal government for part of the cost of medical care for retired persons or persons with disabilities. |
| Today Social Security is not really an insurance program No guarantees . |
| Public Assistance Programs |
| Social Security Problem #2: |
| The number of people working relative to the number of people who are retiring is declining . |
| Social Security Problem #3: |
| Social Security benefit payments are not based on recipient's needs. |
| SSI (Supplemental Security Income)-- |
| Establishes nationwide minimum income for the aged, the blind and the disabled. |
| Public Assistance Programs |
| Temporary Assistance to Needy Families (TANIF) |
| 1996 Welfare Reform Act replaced AFDC. |
| TANIF gives states more discretion in establishing welfare rules 2 year cutoff. |
| -Limits lifetime welfare benefits to 5 years. |
| -Also allows states to deny welfare benefits to unmarried teenage mothers. |
| Policies on Crime and Drugs |
| Crime as a public policy issue traditionally has been considered a state issue--localized problem. |
| Crime issue has increasingly become a national agenda item. |
| Cost of crime currently: $450 billion dollars a year! |
| --this includes spending on criminal justice system, private protection, urban decay, property loss, medical care . |
| Crime and Drug Policy |
| National "Remedies?" |
| "Three Strikes and You are Out." |
| Allows judges to put away for life any individual who is convicted of a third felony crime. |
| Successful Impact?: |
| Statistics not complete. Some crime has been reduced. The vote is not in on the deterrence factor. |
| Rehabilitation vs. "Throwing Away the Key"--The debate is ongoing . |
| Economic Policy |
| Economic Policy Definition: |
| Consists of all actions taken by government to smooth out the ups and downs in the nation's overall business activity. Economic policy is solely the responsibility of the national government. |
| Monetary Policy: |
| Involves manipulating money in circulation so as to affect interest rates, credit markets, rates of inflation, rates of economic growth, and unemployment. |
| Federal Reserve controls "M.P." |
| Economic Policy |
| The Federal Reserve under leadership of Alan Greenspan makes decisions about monetary policy several times a year. |
| Remedies for Periods of Recession and High Unemployment: = expand the money supply. |
| Remedies for Periods of Rising Inflation = reduce the money supply. |
| The Economy is Cyclical: |
| It goes through booms and recessions. |
| A specific Monetary policy generally takes about 14 months to be effective |
| Economic Policy |
| Fiscal Policy Defined: |
| The use of changes in government expenditures and taxes to alter national economic variables. |
| Example: When unemployment rises and economy goes into recession . |
| The government will try to stimulate the economy through increasing government spending, decreasing taxes, and etc. |
| Example: When unemployment decreases and prices rise |
| The govt. reduces spending, increases taxes. |
| One Problem with Fiscal Policy: |
| There is a lag between the government's decision to institute a fiscal policy and the actual implementation of that policy. |
| A number of players slow down the process: (ie. President, OMB, Council of Economic Advisors, Treasury) |
| Ultimately Congress must enact necessary legislation to implement fiscal policy. |
| Economic Policy |
| The Federal Tax System: |
| Always has been plagued by "action-reaction" syndrome (ie. for every government action, there will be a reaction by the public). |
| Individuals and corporations facing high tax rates will react by making concerted attempts to get Congress involved in lowering tax base |
| Economic Policy |
| The Tax Reform Act of 1986: |
| Intended to lower taxes and simplify the tax code. |
| It was successful until large federal deficits forced Congress to to choose between cutting spending and raising taxes. |
| It did the latter |
| Some loopholes created for big corporations (ie. Capital Gains). |
| The tax code today is more compicated than ever. |
| Contemporary Domestic Policy Issues |
| Privatization of Social Security? |
| People given the choice to stay on current government-financed system or place their savings into private pension plans. |
| Gore favors the former, Bush the latter. |
| New Welfare Policy: |
| Did not include input from the poor. |
| Is that democratic? |
| Midterm Study Guide |