Chapter 17: Public Policy Making

I. Setting the Agenda 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? 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 decision A. Nature of Issue 1. Affects the kind of groups that become politically active 2. Affects intensity of political conflict B. 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 conflict B. 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 Policy / War on Drugs: Should we Surrender?

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 America

Costs 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 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

Majoritarian Politics Entrepreneurial Politics Client Politics Interest Group Politics Perceived Costs DistributedConcentrated Distributed Concentrated Perceived Benefits

III. 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. / 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 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 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

Medicare / Medicare brought to the table - apply only to the aged - cover hospital expenses and doctors bills - Medicaid- medical assistance for the poor / Medicare brought to the table - apply only to the aged - cover hospital expenses and doctors bills - Medicaid- medical assistance for the poor

Medicare 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 / 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 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 / 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 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 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 Canada Suffer effects Environmental Policy: Effects of Acid Rain 1. Steel Mills/Electric Power Plants of Midwest and Great Lakes Region 2. Eastern U.S. and Canada Suffer 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 power plants required to reduce emissions by fixed amount by 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 power plants required to reduce emissions by fixed amount by 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 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 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 Programs / Social Security Act of 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 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 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 Politics A. Gives benefits to large numbers B. Cost imposed on small and identifiable group C. Success depends on people working on behalf of majorities (Ralph Nader) A. Gives benefits to large numbers B. Cost imposed on small and identifiable group C. 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 Entrepreneurial The Endangered Species Act of 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 species on list - Bald eagle v. snail darter The Endangered Species Act of 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 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 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 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 Power 1. Limitations on military or economic aid to other countries - Turkey Angolan Civil War 2. The War Powers Act 1. Limitations on military or economic aid to other countries - Turkey 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

Worldviews 1. Isolationism 2. Containment 1. Isolationism 2. Containment

3. Disengagement 4. Human Rights 3. Disengagement 4. Human Rights

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 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 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 Pure Food and Drug Act s 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 Pure Food and Drug Act s 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

Perceptions, 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.