Policy Making

Who is involved in Policy making?• Legislative Branch• Executive Branch• Judicial Branch• Bureaucracy• Special interest groups• Research groups• Corporations• State and local governments• Citizens

Policy Making Process Recognizing the problem/agenda setting

Where is the need? Formulating the policy

Plan of action from various groups Adopting the policy

Official action taken – legislation, executive order, court decision

Process cont’ Implementing the policy

Apply it to real situations, enforce, punishments

Evaluating the Policy Good and bad Changes Begin process all over again

Types of Policies Economic Fiscal Monetary Foreign Military Social Regulatory

Economic Policy Laissez-Faire

To leave alone Free market NO GOVERNMENT INVOLVEMENT

Keynesian Economics (FDR) Government manages economy

Today Mix of both

Fiscal Policy How does the government raise and spend money?

Income taxes (45%) Progressive tax

Social Insurance Tax (1/3 of revenues collected) Social Security and Medicare

Borrowing Deficit Spending

Other taxes Excise (Regressive), Estate, Customs, duties, tariffs

Where does money go? $2.7 trillion federal budget Entitlement Programs

Required by law – Social Security, Medicare, unemployment insurance, retirement pensions

National Defense National debt

Interest on debt

Monetary Policy The government controlling money Inflation – too much $$ in circulation,

dollar value goes down Deflation – too little $$ in circulation Federal Reserve – independent from

government control, regulate $$ in circulation, adjusts interest rates

Foreign Policy Prior 20th century – Isolationist WWI – WWII - Involvement Post WWII – Containment & Cold War United Nations

Foreign Policy Goals Protect national Security International leadership – world peace Maintain balance of Power Cooperating to solve international

problems Promote human rights/democratic values Cooperative foreign trade and

globalization of trade in international organizations

Who makes foreign policy?

• The President– Treaties with consent of Senate– Executive Agreements – no approval of Senate

• The Secretary of State– Chief coordinator of all governmental actions with

other countries• National Security council– Foreign/Military/economic policies that affect

national security• CIA– Gather analyze and transmits information

Military Policy Secretary of defense – oversees Army,

Navy, Air Force President as Commander in Chief Joint Chiefs of Staff – military advisory

board; 5 members from all branches of military service

Social policy “promote the general welfare” Health Care

Do we have a national health care system? No system but ok for research and regulation! The Public Health Service – research and

gather info FDA – regulate labeling and processing of food

& drugs Center for Disease control – reports on

diseases in North America

Social Policy cont’ Welfare

Social Security – for elderly, poor, disabled

Medicare Medicaid Aid to Families with Dependent Children Food Stamps

Social Welfare cont’ Education

Usually a state and local community issue Federal government intervenes

Higher education Project Head Start No Child Left Behind

Schedules, standards, testing, curriculum, teacher qualifications

Regulatory policy Regulating business

Monopolies and fraud Regulating Labor

Worker safety, bargaining, equal employment opportunities

Regulating Energy and environment Department of energy EPA – clean water, air, and waste

disposal, pesticides, radiation

Review questions for unit 5!