chapter 18 domestic policy © 2009, pearson education fiorina, peterson, johnson, and mayer new...

Chapter 18 Domestic Policy

© 2009, Pearson Education

Fiorina, Peterson, Johnson, and Mayer

New American Democracy, Sixth Edition


Types of Public PolicyPublic policy is a term applied to all government programs and regulations– Classified as foreign and domestic

Foreign policy– Involves relations with other nations

Domestic policy– Consists of all government programs and

regulations that directly affect those living within a country

– Includes everything from education and health care to transportation and garbage collection

– Economic policies generally most important. Here we focus on other domestic policies


Stages of Policy Making1. Agenda setting: making an issue so visible that important

political leaders take it seriously

2. Policy deliberation: debate and discussion by groups and political leaders about issues placed on the policy agenda

3. Policy enactment: passage of law by public officials

4. Policy implementation: translation of legislation into set of government programs or regulations

5. Policy outputs: provision of services to citizens or regulation of their conduct

6. Policy outcomes: effect of policy outputs on individuals and businesses

TANF example illustrates the way politics affect the various stages of the policy round.


Social PolicySocial policy is a type of domestic policy that is designed to help those thought to be in need of government assistance

One of central issues:

– Balance of government assistance between elderly and young

– Elderly have done well in securing government help

– U.S. healthiest place to grow old but riskiest place to be born. Why?


Social Insurance for Senior Citizens

1935 Congress enacted the landmark Social Security Act

– Created a broad range of social programs, including a social insurance program for seniors generally known as Social Security

Social security originally cost the government little

– Those who first retired under the program received minimal benefits because they had not paid into the program significantly

– Moreover, people retiring at age 65 were only expected to live an average of 13 more years

– Today a retiring worker is expected to live at least 18 more years

– As program expanded, more people paid in, and were covered


Social Insurance for Senior Citizens

Insurance principle

Social Security differs from an insurance program in that it operates at a loss

How could it survive when benefits exceeded contributions?

– Workers grew in number compared to those in the past

– Workers produced and earned more than those in the past

– Workers paid a higher percentage of their earnings than in the past

– But, rate of worker growth has declined,

– Rates of economic productivity may not be as high,

– Workers may be less willing to pay higher taxes


Politics of Social Insurance

The risks of change to social security

– Punishment by voters

Complexities of Medicare

– Cost of program grew from $36 billion in 1970 to more than $330 billion in 2005

• Number of elderly growing, increasing demand for medical services

• Doctors able to use better and more expensive technology

• Patients expect error-free medicine. Sue over mistakes, and this drives up medical insurance costs.

– Politicians have been reluctant to engage in cost-saving proposals and are moving in the opposite direction.

• Drug benefit plan supported by Bush and passed by Congress may add $700 billion to the cost of Medicare from 2005–2015


Politics of Social InsuranceInfluence of Senior Citizens

– Seniors are much more likely than young people to back up their votes with political actions

– AARP is a large and influential interest group

Broad Support

– People generally support benefits for senior citizens

• hope to benefit themselves one day

• many have parents receiving these benefits

• believe that since seniors contributed to the benefit, they should be guaranteed the benefits promised


Public Assistance to Poor Families

Public Assistance offers programs that provide low-income households with income subsidies and access to essential goods and services

Safety nets

– Temporary assistance to needy families

– Food stamps

– Earned income tax credit

– Supplemental Security Income

– Rent subsidies

– Medicaid (includes services for low-income elderly)


Limitations on Public Assistance Programs

While the list of programs seems impressive, the government spends more than twice as much on social security and Medicare as it spends on all those programs combined

Why?

– Fewer cash benefits

– Less indexation

– Assistance, not insurance

– State, not national programs

– Benefits cannot supplement income


Politics of Public Assistance

Programs for poor families with children are poorly- funded and restrictively-designed, because unlike the elderly, children and the poor do not exercise direct political power

What of those working on their behalf?

– Policy analysts offer competing explanations of persistence of poverty

– Weak interest groups that fight among themselves

– A divided public

– Opportunistic political parties


Politics of Public AssistancePolicy Debate: before government can design

solutions, it has to decide what the problem isPolicy experts disagree about the causes of poverty among families with childrenThree different theories have shaped the welfare debate:– Liberal theory– Conservative theory– Postindustrial economy theory

Other factors that influence the debate:– Group organization– Public opinion– Political parties


Education PolicyEducation policy has become a significant topic of public debate

Historically supportive of public school, now concerned with issues of quality

Responsibility for education is divided

– Local school boards

– State departments of education

– Federal Department of Education

Bulk of control at state and local level


Development of Public EducationDevelopment of public education

1785 Congress set aside revenue for the maintenance of public schools

Accessible to immigrants

Fostered common language

Open to most citizens

Reinforced a distinctive American identity built around the concepts of liberty and equality

Created educated workforce that operated the machines that would make the country an industrial power


Contemporary Issues in Education Policy

Teacher salaries have declined since 1970

Governments in the U.S. spend 3.8 percent of the U.S. GDP on primary and secondary education

– Japan and German spend still less;

– Other countries, such as Canada, Sweden and France, spend more

And we appear to do less well than other countries in terms of educational outcomes relative to expenditures


Contemporary Issues in Education Policy

Three major sets of proposals that seem to improve our educational system

– School choice

– Set of national standards

• 2002 No Child Left Behind

• Underfunded; bait and switch?

– Provide schools with greater resources

Each set of proposals has its critics and advocates.

What do you think?


Politics of Education

In the past, public schools were beyond partisan dispute

Today, our two major parties have begun to disagree over a broad range of educational issues

Both parties remain strongly committed to public education


Regulation and Its RiseGovernment regulation

– Rules and standards that control economic, social, and political activities

Although Congress can pass regulations, it usually gives the responsibility to agencies within the executive branch

Regulation dates back to feudal times

Constitution gives Congress power to regulate commerce

– Commerce clause has extended regulation from civil rights to national insurance standards


The Rise of Federal RegulationThree distinct periods of regulator increase

Progressive era– Muckrakers exposed abuses of industrialization and

focused on abuses of large corporations, as well as other abuses

– Sherman Act (1890) and Meat Inspection Act of 1906

New Deal era (1930s)– Prevent practices that were thought to have caused the

Great Depression

1960s and 1970s– Focus on consumer safety, occupational safely, and

environmental protection– Environmental Protection Agency


Justification for Regulation

The government now regulates many business and social activities

Why have the regulatory responsibilities of government expanded so dramatically over the past 50 years?

Three broad types of circumstances in which they find government regulation most easily justified:

– Natural monopoly

– Negative externalities

– Protecting the uninformed


Politics of RegulationWhen and how regulations are imposed are political decisions

– Shaped by election pressures

Congress:

– Create regulatory agencies in order to escape criticism when things go wrong

– Also to avoid being blamed by not directly imposing the regulations but handing the job off to a regulatory agency


Politics of RegulationBlame avoidance

Agency Discretion

– Because Congress can pass ambiguous legislation, agencies may have considerable freedom in deciding how to execute their mandates

– Not limitless: “zone of acceptance” is the range within which Congress allows agencies to interpret and apply statutes.


Politics of RegulationCourts

– Interpret the meaning of congressional statutes and decide whether their application in specific cases conforms to congressional intent

– Have considerable discretion because they often must interpret vague and contradictory laws passed by Congress

• Example: 1973 Endangered Species Act


DeregulationDeregulation

– Involves the removal of government rules that once controlled an industry

Address concerns that stem from the negative impact of regulation

Example: the airline industry

– Airline fares were regulated by the government in order to prevent price gouging

– According to analysts, the outcome was the opposite of its intent

chapter 18 domestic policy © 2009, pearson education fiorina, peterson, johnson, and mayer new...

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