PUBLIC POLICY A system of laws, regulations, courses of action, and funding priorities concerning a given issue by government.

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2 PUBLIC POLICY A system of laws, regulations, courses of action, and funding priorities concerning a given issue by government. SETTING THE PUBLIC AGENDA ***PUBLIC AGENDA: Issues that people believe require government action.

3 STEP 1: SETTING THE AGENDA People make government aware of a problem through ***Linkage Institutions:*** structures that connect people with government. EX: Elections, political parties, interest groups, and the media. Major Event? Trend in statistics? Interest group or media raising awareness?

4 STEP 2: POLICY FORMULATION Congress and the President begin formulating solutions. Financial and political costs considered The Bureaucracy and issue networks are consulted. Applicable state laws and experiences will also be looked at. Bills are written

5 STEP 3: POLICY ADOPTION A remedy is chosen ***Political Horse-Trading (Deal-making) and ***Log- Rolling (vote trading) takes place between members of Congress and the President in order to come to a consensus on a solution.

6 STEP 4: POLICY IMPLEMENTATION A policy is regulated The Bureaucracy is expanded and Iron Triangles form.

7 STEP 5: POLICY EVALUATION Policy is assessed to see if it is working or causing more problems that require its repeal or additional public policies to fix. and the cycle repeats.

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10 The likelihood that an administration or Congress will adopt a policy depends on the cost/benefit ratio The perception of who bears the costs and who receives the benefits is measured four ways MAJORITARIAN POLITICS ENTREPRENEURIAL POLITICS CLIENT POLITICS INTEREST GROUP POLITICS

11 MAJORITARIAN POLITICS Large group pays/large group benefits Depends on appealing to the largest number of voters EXAMPLE: National Defense, Clean Air

12 ENTREPRENEURIAL POLITICS Small group pays/large group benefits Frequently led by an activist and driven by anger over an incident or series of incidents EXAMPLES: Automobile safety standards; Background checks

13 CLIENT POLITICS Large group pays; Small group benefits Those receiving benefits are well-organized Those shouldering the cost are often unaware EXAMPLES: Farm Subsidies, ***Pork Barrel Projects (Earmarks): Money that benefits a small constituency; Industry-friendly regulations (Airlines, Banking, etc.)

14 INTEREST GROUP POLITICS Small group bears the cost/small group benefits Interest group-driven as there is a winner and a loser EXAMPLES: FCC Regulations, Labor Relations

15 MAJOR POLICY AREAS ECONOMIC SOCIAL WELFARE ENVIRONMENTAL FOREIGN ECONOMIC POLICY Economic policy has evolved from laissez faire to increased government intervention over the last 200 years, justified primarily through the Commerce Clause. Sherman Anti-Trust Act of 1890 Meat Inspection Act (1906) Federal Reserve Act (1913) New Deal (1930s)

16 OFFICE OF MANAGEMENT AND BUDGET Executive office responsible for preparing the federal budget (what the feds spend our money on) ***FISCAL POLICY Congress adjusts spending levels, revenues (taxes) and takes on debt in order to influence the economy. ***MONETARY POLICY The Federal Reserve bank controls the supply of money and interest rates in order to control inflation.

17 BUDGET PROCESS 1. OMB prepares the budget 2. House and Senate budget committees + Congressional Budget Office (CBO) analyze the budget. 3. Congress votes to approve MANDATORY VS DISCRETIONARY SPENDING ***ENTITLEMENTS*** Programs that guarantee and provide benefits to a particular group if they meet certain criteria. 2/3rds of federal spending Mandatory Spending: Medicare/Medicaid; Social Security; TANF; Veteran s Benefits

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19 ***DISCRETIONARY SPENDING Government spending implemented through an appropriations bill. Optional part of fiscal policy EX: Earmarks/Pork, Non-essential employees or agencies.

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