Chapter 17: Public Policy Making

Chapter 17: Public Policy Making

I. Setting the AgendaI. Setting the AgendaA. Most important decision affecting policy-

making is deciding what belongs on political agenda

What is on the political agenda today 4/16/13?

1. Pre-1930s agenda?; today?

A. Most important decision affecting policy-making is deciding what belongs on political agenda

What is on the political agenda today 4/16/13?

1. Pre-1930s agenda?; today?

B. The legitimate scope of government action 1. Always gets larger a. what explains increase? b. Is any one political party responsible?

a. believe should keep doing what it is doing b. changes in attitude and events tend to

increase government activities c. Gov’t. growth not attributed to one party

B. The legitimate scope of government action 1. Always gets larger a. what explains increase? b. Is any one political party responsible?

a. believe should keep doing what it is doing b. changes in attitude and events tend to

increase government activities c. Gov’t. growth not attributed to one party

2. May also be enlarged w/out public demand and even when conditions are good.

a. Groups- motivated force in adding new issues

1. Maybe organized or disorganized 2. Labor; race riots b. relative deprivation: being worse off than

one thinks one ought to be

2. May also be enlarged w/out public demand and even when conditions are good.

a. Groups- motivated force in adding new issues

1. Maybe organized or disorganized 2. Labor; race riots b. relative deprivation: being worse off than

one thinks one ought to be

b. Institutions are a second force adding new issues

1. Major institutions:

b. Institutions are a second force adding new issues

1. Major institutions:

II. Making a decisionII. Making a decision

A. Nature of Issue 1. Affects the kind of groups that

become politically active 2. Affects intensity of political conflictB. Costs and benefits of a proposed

policy provide a way to understand how issue affects political power

A. Nature of Issue 1. Affects the kind of groups that

become politically active 2. Affects intensity of political conflictB. Costs and benefits of a proposed

policy provide a way to understand how issue affects political power

1. Cost: any burden, monetary or nonmonetary that some people must, or expect, to bear from the policy

2. Benefit: any satisfaction, monetary/non that some people must, or expect, to receive from the policy

1. Cost: any burden, monetary or nonmonetary that some people must, or expect, to bear from the policy

2. Benefit: any satisfaction, monetary/non that some people must, or expect, to receive from the policy

3. Two aspects of costs and benefits are important

a. perception of costs and benefits affects politics

b. legitimate for the group to benefit 4. Politics is a process of settling disputes

over who benefits/pays and who ought to benefit/pay

5. Prefer programs w/ benefits at low cost

3. Two aspects of costs and benefits are important

a. perception of costs and benefits affects politics

b. legitimate for the group to benefit 4. Politics is a process of settling disputes

over who benefits/pays and who ought to benefit/pay

5. Prefer programs w/ benefits at low cost

Crime PolicyCrime Policy

War on Drugs: Should we Surrender?

War on Drugs: Should we Surrender?

Goal of Drug-Crime Policy?Goal of Drug-Crime Policy?

Discourage drug use Discourage drug sales Punish drug use Punish drug sales Stop drug-related violence & theft Stop drug-related corruption

Discourage drug use Discourage drug sales Punish drug use Punish drug sales Stop drug-related violence & theft Stop drug-related corruption

Drug Abuse in AmericaDrug Abuse in America

Costs of the Drug WarCosts of the Drug War

Federal spending: $19 billion/yr - $13 billion to reduce supply - $6 billion for treatment

State spending: $20 billion/yr 1.7 million people incarcerated - 30% for drug crimes - $20,000 per inmate per year

Federal spending: $19 billion/yr - $13 billion to reduce supply - $6 billion for treatment

State spending: $20 billion/yr 1.7 million people incarcerated - 30% for drug crimes - $20,000 per inmate per year

Costs of the Drug WarCosts of the Drug War

Enormous drug profits - kilo of heroin in Pakistan costs

an average of $2,720, and sells for an average of $129,380 in the U.S.

Corruption of Law Enforcement Violent crime

Enormous drug profits - kilo of heroin in Pakistan costs

an average of $2,720, and sells for an average of $129,380 in the U.S.

Corruption of Law Enforcement Violent crime

Perceived Costs

Distributed Concentrated

Dis

trib

ute

dC

on

cen

trate

d

Perc

eiv

ed B

en

efits

III. Majoritarian PoliitcsIII. Majoritarian Poliitcs

A. Widely distributed benefits, widely distributed costs

1. Social Security 2. Military/Defense 3. Interest Groups- less relevant

of “free rider” problem

A. Widely distributed benefits, widely distributed costs

1. Social Security 2. Military/Defense 3. Interest Groups- less relevant

of “free rider” problem

Social Welfare in the U.S.Social Welfare in the U.S. Distinctive features: - who benefits; who deserves to;

helping the “deserving poor” - late arrival- 22 European nations

already had social welfare systems - federalism and the constitution - use of nongovernmental institutions charitable choice

Distinctive features: - who benefits; who deserves to;

helping the “deserving poor” - late arrival- 22 European nations

already had social welfare systems - federalism and the constitution - use of nongovernmental institutions charitable choice

A Closer Look @ Majoritarian Politics

A Closer Look @ Majoritarian Politics

Social Welfare Policy 1. Major Social Welfare Programs a. Old age, Survivors, and Disability Insurance (aka- Social Security) b. Medicare left out

Social Welfare Policy 1. Major Social Welfare Programs a. Old age, Survivors, and Disability Insurance (aka- Social Security) b. Medicare left out

THESE ALL HAVE MEANS TEST- Assistance Programs

THESE ALL HAVE MEANS TEST- Assistance Programs

c. Unemployment Insurance d. Temporary Assistance for Needy

Families (TANF) e. Supplemental Security Income f. Food Stamps g. Medicaid

c. Unemployment Insurance d. Temporary Assistance for Needy

Families (TANF) e. Supplemental Security Income f. Food Stamps g. Medicaid

MedicareMedicare

1964- Medicare brought to the table

- apply only to the aged - cover hospital expenses and

doctors bills - Medicaid- medical assistance for

the poor

1964- Medicare brought to the table

- apply only to the aged - cover hospital expenses and

doctors bills - Medicaid- medical assistance for

the poor

Medicare ABCDsMedicare ABCDs

Part A: hospital insurance; some pay premium, some do not

Part B: medical insurance; 2007 premium was $93.50

Part C: Medicare Advantage Plus Part D: prescription drug coverage;

participation is voluntary

Part A: hospital insurance; some pay premium, some do not

Part B: medical insurance; 2007 premium was $93.50

Part C: Medicare Advantage Plus Part D: prescription drug coverage;

participation is voluntary

Reforming Majoritarian Welfare Programs

Reforming Majoritarian Welfare Programs

Social Security Reform- $4 trillion shortfall over next 75 years!

- Raise the retirement age - reduce benefits for high earners - raise payroll taxes - increase the wage cap - government investment - individual investment

Social Security Reform- $4 trillion shortfall over next 75 years!

- Raise the retirement age - reduce benefits for high earners - raise payroll taxes - increase the wage cap - government investment - individual investment

Medicare ReformMedicare Reform

Solution 1: get rid of it! Doctors and hospitals work for government!

Solution 2: let elderly use medicare money to buy health insurance

Solution 1: get rid of it! Doctors and hospitals work for government!

Solution 2: let elderly use medicare money to buy health insurance

Majoritarian Politics and Environmental Policy

Majoritarian Politics and Environmental Policy

When people believe costs are low

1. NEPA (National Environmental Policy Act) - requires EIS to determine affect on quality

of human environment - used as a way to block, change, or delay

projects - support for EIS is strong be/c people

believe they are not paying a high price, but gaining significant benefit

When people believe costs are low

1. NEPA (National Environmental Policy Act) - requires EIS to determine affect on quality

of human environment - used as a way to block, change, or delay

projects - support for EIS is strong be/c people

believe they are not paying a high price, but gaining significant benefit

When costs are high!

1. Gasoline Tax

- one option- discourage driving, reduce smog, etc.

- another option- would result in more highways, more buses, etc.

When costs are high!

1. Gasoline Tax

- one option- discourage driving, reduce smog, etc.

- another option- would result in more highways, more buses, etc.

IV. Interest Group PoliticsIV. Interest Group Politics

A. Concentrated benefits, concentrated costs

1. Confer benefits on small, identifiable group; costs on another small, identifiable group

2. Fought out by organized interest groups

A. Concentrated benefits, concentrated costs

1. Confer benefits on small, identifiable group; costs on another small, identifiable group

2. Fought out by organized interest groups

A Closer Look @ Interest Group Politics

A Closer Look @ Interest Group Politics

Environmental Policy: Effects of Acid Rain 1. Steel Mills/Electric Power Plants of Midwest and Great Lakes Region 2. Eastern U.S. and CanadaSuffer effects

Environmental Policy: Effects of Acid Rain 1. Steel Mills/Electric Power Plants of Midwest and Great Lakes Region 2. Eastern U.S. and CanadaSuffer effects

Result- Interest Group Battle:Residents of Canada/New England v. Midwestern Bus., labor unions, and politicians

1977 Law requiring “scrubbers” on all new coal-burning plants

Result- Interest Group Battle:Residents of Canada/New England v. Midwestern Bus., labor unions, and politicians

1977 Law requiring “scrubbers” on all new coal-burning plants

13 year stalemate followed (typical of interest group politics)

End result: compromise

President Bush- 2 step regulation 1. 111 power plants required to reduce emissions by fixed

amount by 1995 2. Shaper emissions reductions for more plants, requiring use

of scrubbers by 2000 a. system of sulfur dioxide allowances that could be bought

and sold

13 year stalemate followed (typical of interest group politics)

End result: compromise

President Bush- 2 step regulation 1. 111 power plants required to reduce emissions by fixed

amount by 1995 2. Shaper emissions reductions for more plants, requiring use

of scrubbers by 2000 a. system of sulfur dioxide allowances that could be bought

and sold

V. Client PoliticsV. Client Politics

A. Small group receives benefits; incentive to organize and build coalitions (logrolling)

A. Beneficiaries become “clients” of government be/c policy serves need

1. Pork-barrel projects 2. Logrolling: trading votes, forming coalitions

D. Agency capture is likely

A. Small group receives benefits; incentive to organize and build coalitions (logrolling)

A. Beneficiaries become “clients” of government be/c policy serves need

1. Pork-barrel projects 2. Logrolling: trading votes, forming coalitions

D. Agency capture is likely

Welfare recipients: - cost to taxpayer? - legitimacy of benefit?

Homeless - not organized, but get benefits

Tobacco farmers - once legitimate, not any more

Welfare recipients: - cost to taxpayer? - legitimacy of benefit?

Homeless - not organized, but get benefits

Tobacco farmers - once legitimate, not any more

Closer Look @ Client PoliticsCloser Look @ Client Politics

Environmental Policy: Agricultural Pesticides

Client- organized farmers

Resist efforts to restrict the use of pesticides and/or control runoff

Environmental Policy: Agricultural Pesticides

Client- organized farmers

Resist efforts to restrict the use of pesticides and/or control runoff

Issues: U.S. farmers most productive in the world

50,000 types of pesticides

Farm subsidies encourage surplus

Successes: EPA budget for reviewing pesticides kept small and very few taken off market

Issues: U.S. farmers most productive in the world

50,000 types of pesticides

Farm subsidies encourage surplus

Successes: EPA budget for reviewing pesticides kept small and very few taken off market

Client Welfare ProgramsClient Welfare Programs

Social Security Act of 1935 - created AFDC - deserving poor- then and now - government regulation: medicaid, job

training, child care, identify children’s fathers, food stamps, EITC, free school meals, housing assistance, etc.

Social Security Act of 1935 - created AFDC - deserving poor- then and now - government regulation: medicaid, job

training, child care, identify children’s fathers, food stamps, EITC, free school meals, housing assistance, etc.

Majoritarian v. Client PoliticsMajoritarian v. Client Politics Majoritarian- policy will be adopted if

beneficiaries believe benefits will exceed costs and if political elites believe it is legitimate

Client- policy will pass if cost to public at large is not perceived to be to great and if client receiving benefit is “deserving”

Majoritarian- policy will be adopted if beneficiaries believe benefits will exceed costs and if political elites believe it is legitimate

Client- policy will pass if cost to public at large is not perceived to be to great and if client receiving benefit is “deserving”

VI. Entrepreneurial PoliticsVI. Entrepreneurial Politics

A. Gives benefits to large numbersB. Cost imposed on small and

identifiable groupC. Success depends on people

working on behalf of majorities (Ralph Nader)

A. Gives benefits to large numbersB. Cost imposed on small and

identifiable groupC. Success depends on people

working on behalf of majorities (Ralph Nader)

1. Entrepreneurs can be in government or private citizens

2. Motives- self-serving or public spirited

3. Policies can be good or bad

1. Entrepreneurs can be in government or private citizens

2. Motives- self-serving or public spirited

3. Policies can be good or bad

A Closer Look @ Entrepreneurial A Closer Look @ Entrepreneurial

The Endangered Species Act of 1973

- prohibits buying or selling a bird, fish, animal, or plant that government regards as “endangered”

- Can’t build dam or farm that may harm an endangered species

- 600 species on list- Bald eagle v. snail darter

The Endangered Species Act of 1973

- prohibits buying or selling a bird, fish, animal, or plant that government regards as “endangered”

- Can’t build dam or farm that may harm an endangered species

- 600 species on list- Bald eagle v. snail darter

Ben Cone v. The Red Cockaded Woodpecker

7,200 acres of southern pines- biologist found species on property

Ben Cone forced to give up 1,560 acres of trees to protect species

Ben Cone v. The Red Cockaded Woodpecker

7,200 acres of southern pines- biologist found species on property

Ben Cone forced to give up 1,560 acres of trees to protect species

Foreign and Military PolicyForeign and Military Policy

1. Kinds of foreign policy: - majoritarian- decision to go to war, military

alliance w/ Western Europe, nuclear test ban treaty, etc.

* President dominant figure

- interest group- tariffs; Japanese steel

- client politics- support of Isreal * Congres is dominant

1. Kinds of foreign policy: - majoritarian- decision to go to war, military

alliance w/ Western Europe, nuclear test ban treaty, etc.

* President dominant figure

- interest group- tariffs; Japanese steel

- client politics- support of Isreal * Congres is dominant

The Two PresidenciesThe Two Presidencies

1. Domestic affairs: - relatively weak and closely checked

2. Foreign Affairs: - powerful; stronger than intent of

framers - compared to other nations

1. Domestic affairs: - relatively weak and closely checked

2. Foreign Affairs: - powerful; stronger than intent of

framers - compared to other nations

Checks on Presidential PowerChecks on Presidential Power

1. Limitations on military or economic aid to other countries

- Turkey 1974-1978 - Angolan Civil War

2. The War Powers Act

1. Limitations on military or economic aid to other countries

- Turkey 1974-1978 - Angolan Civil War

2. The War Powers Act

3. Intelligence Oversight - CIA must notify congressional

committees of proposed covert action

- House and Senate Intelligence Committees

3. Intelligence Oversight - CIA must notify congressional

committees of proposed covert action

- House and Senate Intelligence Committees

WorldviewsWorldviews

1. Isolationism

2. Containment

1. Isolationism

2. Containment

3. Disengagement

4. Human Rights

3. Disengagement

4. Human Rights

VII. The Case of Business Regulation

VII. The Case of Business Regulation

A. Relationship of wealth and power 1. One View: economic power

dominates political power a. wealth = power b. politicians and business people

have similar backgrounds = ideology c. must keep economy healthy

A. Relationship of wealth and power 1. One View: economic power

dominates political power a. wealth = power b. politicians and business people

have similar backgrounds = ideology c. must keep economy healthy

2. Another view- political power is threat to market economy

3. Neither is correct; business-gov’t relationships depend on many things.

2. Another view- political power is threat to market economy

3. Neither is correct; business-gov’t relationships depend on many things.

B. Majoritarian Politics 1. Antitrust legislation in 1890s a. public opinion strong but unfocused b. legislation vague; no enforcement 2. Legislation stronger in 20th century a. Presidential initiative b. politicians/bus. Leaders committed c. Fed. Trade Commission; Clayton Act

B. Majoritarian Politics 1. Antitrust legislation in 1890s a. public opinion strong but unfocused b. legislation vague; no enforcement 2. Legislation stronger in 20th century a. Presidential initiative b. politicians/bus. Leaders committed c. Fed. Trade Commission; Clayton Act

C. Interest Group Politics 1. Labor-management conflict a. 1935- unions seek gov’t. protection;

bus. Firms oppose 1. Unions win = NLRB 2. Politics of the conflict affected

outcomes a. highly publicized struggle

C. Interest Group Politics 1. Labor-management conflict a. 1935- unions seek gov’t. protection;

bus. Firms oppose 1. Unions win = NLRB 2. Politics of the conflict affected

outcomes a. highly publicized struggle

b. economic conditions and racketeering

D. Client Politics 1. Agency capture likely when benefits

focused and cost dispersed 2. Licensing of attorneys, barbers a. restricts entry into occupation 1. Can charge higher prices b. people not opposed

b. economic conditions and racketeering

D. Client Politics 1. Agency capture likely when benefits

focused and cost dispersed 2. Licensing of attorneys, barbers a. restricts entry into occupation 1. Can charge higher prices b. people not opposed

1. Believe regulation protect them 2. Costs not obvious 3. Regulation of milk industry; sugar

production; merchant shipping a. prevents price competition; keeps

price high b. public unaware of high prices

1. Believe regulation protect them 2. Costs not obvious 3. Regulation of milk industry; sugar

production; merchant shipping a. prevents price competition; keeps

price high b. public unaware of high prices

E. Entrepreneurial Politics- entrepreneurs galvanize public opinion and mobilize congressional support

1. 1906- Pure Food and Drug Act 2. 1960s and ‘70s: large number of

consumer and environmental protection statutes

a. Clean Air Act; Toxic Substance Control Act

E. Entrepreneurial Politics- entrepreneurs galvanize public opinion and mobilize congressional support

1. 1906- Pure Food and Drug Act 2. 1960s and ‘70s: large number of

consumer and environmental protection statutes

a. Clean Air Act; Toxic Substance Control Act

3. Policy entrepreneurs associated with these measures- Ralph Nader; Edmund Muskie, Upton Sinclair

a. assisted by crisis; scandal which focuses public attention on issue

b. debate may become extreme

3. Policy entrepreneurs associated with these measures- Ralph Nader; Edmund Muskie, Upton Sinclair

a. assisted by crisis; scandal which focuses public attention on issue

b. debate may become extreme

4. Risk of such programs: agency may be captured by regulated industry

a. Newer protection agencies less vulnerable to capture:

1. Standards specific; timetables strict

2. Regulate many different industries = no unified opposition

3. Allies in the media

4. Risk of such programs: agency may be captured by regulated industry

a. Newer protection agencies less vulnerable to capture:

1. Standards specific; timetables strict

2. Regulate many different industries = no unified opposition

3. Allies in the media

4. Can use courts to bring pressure on agencies

4. Can use courts to bring pressure on agencies

Perceptions, beliefs, interests, and valuesPerceptions, beliefs, interests, and values

A. Problem of definition 1. Cost and benefits not define in $

terms only 2. Cost/benefits a matter of perception 3. Political conflict is struggle to alter

perception

A. Problem of definition 1. Cost and benefits not define in $

terms only 2. Cost/benefits a matter of perception 3. Political conflict is struggle to alter

perception

B. Types of Arguments used 1. Here and Now- people care

more about the present than the distant future

2. Cost argument- people react more strongly to costs than to benefits

B. Types of Arguments used 1. Here and Now- people care

more about the present than the distant future

2. Cost argument- people react more strongly to costs than to benefits

C. Role of Values 1. Values: our conception of what

is good for our community or our country

2. Emphasis on self-interest leads to neglecting power of ideas.

C. Role of Values 1. Values: our conception of what

is good for our community or our country

2. Emphasis on self-interest leads to neglecting power of ideas.