Chapter Seven Public Policy Copyright © 2012, 2010, 2008 Pearson Education, Inc. All rights reserved.

Public Policy  Public policy consists of all those authoritative public decisions that governments make.  Outputs – decisions  Outcomes – end results  Political Goods – goals and values  Public policy consists of all those authoritative public decisions that governments make.  Outputs – decisions  Outcomes – end results  Political Goods – goals and values Copyright © 2012, 2010, 2008 Pearson Education, Inc. All rights reserved.

Government and What It Does  Governments do many things.  Production of goods and services  varies from country to country  regulation of telecommunications and air traffic  provide defense, law enforcement, roads, postal service  may operate major industries  Governments do many things.  Production of goods and services  varies from country to country  regulation of telecommunications and air traffic  provide defense, law enforcement, roads, postal service  may operate major industries Copyright © 2012, 2010, 2008 Pearson Education, Inc. All rights reserved.

Political Goals and Political Goods  Political goals motivate different policies.  Political goods are organized around:  System goods: Citizens are free and able to act purposefully when environment is stable, transparent, predictable  Process goods: citizen participation and free political participation; democratic procedures, due process  Policy goods: economic welfare, quality of life, freedom, personal security  Political goals motivate different policies.  Political goods are organized around:  System goods: Citizens are free and able to act purposefully when environment is stable, transparent, predictable  Process goods: citizen participation and free political participation; democratic procedures, due process  Policy goods: economic welfare, quality of life, freedom, personal security Copyright © 2012, 2010, 2008 Pearson Education, Inc. All rights reserved.

Public Policy Outputs  Public policies may be summarized and compared according to outputs classified into four headings:  Extraction of Resources – from domestic, international environments  Distribution – to citizens, residents  Regulation – of human behavior  Symbolic Outputs – exhort citizens to engage in desired behavior  Public policies may be summarized and compared according to outputs classified into four headings:  Extraction of Resources – from domestic, international environments  Distribution – to citizens, residents  Regulation – of human behavior  Symbolic Outputs – exhort citizens to engage in desired behavior Copyright © 2012, 2010, 2008 Pearson Education, Inc. All rights reserved.

Extraction  Direct extraction of services: compulsory military service, jury duty, labor imposed on convicts  Direct resource extraction: taxation  Direct taxes/Indirect taxes  Progressive taxes/Regressive taxes  Tax profiles of different countries vary:  overall tax burden  reliance on different types of taxes  how they collect revenues  Direct extraction of services: compulsory military service, jury duty, labor imposed on convicts  Direct resource extraction: taxation  Direct taxes/Indirect taxes  Progressive taxes/Regressive taxes  Tax profiles of different countries vary:  overall tax burden  reliance on different types of taxes  how they collect revenues Copyright © 2012, 2010, 2008 Pearson Education, Inc. All rights reserved.

Distribution  Transfers of money, goods, services - to citizens, residents, clients of the state  Distributive Policy Profiles  Health, education, defense consume largest proportion of government spending  Developed countries allocate half to two thirds of government expenditures to education, health, welfare  First modern welfare state in Germany in 1880s  1930s to 1970s most industrialized states adopted and expanded welfare policies  Mixture between social insurance and social redistribution  Transfers of money, goods, services - to citizens, residents, clients of the state  Distributive Policy Profiles  Health, education, defense consume largest proportion of government spending  Developed countries allocate half to two thirds of government expenditures to education, health, welfare  First modern welfare state in Germany in 1880s  1930s to 1970s most industrialized states adopted and expanded welfare policies  Mixture between social insurance and social redistribution Copyright © 2012, 2010, 2008 Pearson Education, Inc. All rights reserved.

Challenges to the Welfare State  Welfare can be expensive  Governments often have limited funds  Committing future generations to pay  Welfare states give citizens few incentives to work  Welfare can be expensive  Governments often have limited funds  Committing future generations to pay  Welfare states give citizens few incentives to work Copyright © 2012, 2010, 2008 Pearson Education, Inc. All rights reserved.

Regulation  Regulation is exercise of political control over behavior of individuals/groups in society  Contemporary governments are welfare states and regulatory states  Governments regulate by:  legal means  material or financial inducements  persuasion or moral exhortation  Particularly important politically: government control over political participation and communication  Regulation is exercise of political control over behavior of individuals/groups in society  Contemporary governments are welfare states and regulatory states  Governments regulate by:  legal means  material or financial inducements  persuasion or moral exhortation  Particularly important politically: government control over political participation and communication Copyright © 2012, 2010, 2008 Pearson Education, Inc. All rights reserved.

Community Building and Symbolic Outputs  Intended to enhance people’s national identity, civil pride, trust in government  Enhance other areas of performance:  make people pay their taxes more readily, honestly  comply with laws more faithfully  accept sacrifice, danger, hardship  Intended to enhance people’s national identity, civil pride, trust in government  Enhance other areas of performance:  make people pay their taxes more readily, honestly  comply with laws more faithfully  accept sacrifice, danger, hardship Copyright © 2012, 2010, 2008 Pearson Education, Inc. All rights reserved.

Domestic Policy Outcomes  How do extractive, distributive, regulative, symbolic policies affect lives of citizens?  Sometimes policies have unintended and undesirable consequences  To estimate effectiveness of public policy, have to examine actual policy outcomes as well as governmental policies and implementation  How do extractive, distributive, regulative, symbolic policies affect lives of citizens?  Sometimes policies have unintended and undesirable consequences  To estimate effectiveness of public policy, have to examine actual policy outcomes as well as governmental policies and implementation Copyright © 2012, 2010, 2008 Pearson Education, Inc. All rights reserved.

Domestic Policy Outcomes  Welfare:  poverty, water quality, sanitation, pollution  Health:  physicians, birth rate, life expectance, infant mortality, malnutrition, fertility  Education:  skills, economic development, secondary education, college education, literacy rates, access to information technology  Welfare:  poverty, water quality, sanitation, pollution  Health:  physicians, birth rate, life expectance, infant mortality, malnutrition, fertility  Education:  skills, economic development, secondary education, college education, literacy rates, access to information technology Copyright © 2012, 2010, 2008 Pearson Education, Inc. All rights reserved.

Fairness Outcomes  Promoting gender equality and empowering women  Modernizing status of women makes them better informed and capable of making choices that lead stable healthier population  Fairness in treatment of minority ethnic, racial, religious groups also an issue  Great income inequality violates standards of fairness  Promoting gender equality and empowering women  Modernizing status of women makes them better informed and capable of making choices that lead stable healthier population  Fairness in treatment of minority ethnic, racial, religious groups also an issue  Great income inequality violates standards of fairness Copyright © 2012, 2010, 2008 Pearson Education, Inc. All rights reserved.

Liberty and Freedom Outcomes  Political Rights: opportunities for citizens to participate  Civil Liberties: protection for freedom of speech, press, assembly, religion, due process  Political Rights: opportunities for citizens to participate  Civil Liberties: protection for freedom of speech, press, assembly, religion, due process Copyright © 2012, 2010, 2008 Pearson Education, Inc. All rights reserved.

Domestic Security Outcomes  Crime rates increasing in many advanced societies and in developing world  High crime rates primarily found in urban areas  migration increases diversity, conflict  pace of urbanization explosive  severe problems of poverty, infrastructure  unemployment, drug abuse  Crime rates have come down in U.S.  stricter law enforcement, increased incarceration time, decrease in youth  Crime rates increasing in many advanced societies and in developing world  High crime rates primarily found in urban areas  migration increases diversity, conflict  pace of urbanization explosive  severe problems of poverty, infrastructure  unemployment, drug abuse  Crime rates have come down in U.S.  stricter law enforcement, increased incarceration time, decrease in youth Copyright © 2012, 2010, 2008 Pearson Education, Inc. All rights reserved.

International Outcomes  Economic, diplomatic, military, informational  Outcomes of interaction among nations:  prosperity or depression  war or peace  secularization or spread of religious beliefs  Nationals economies more interdependent  restrictions and trade barriers  Environmental damage  Cultural pressures  Most costly outcome is warfare  last decades of 20th century: three-quarters of war deaths were civilians  Economic, diplomatic, military, informational  Outcomes of interaction among nations:  prosperity or depression  war or peace  secularization or spread of religious beliefs  Nationals economies more interdependent  restrictions and trade barriers  Environmental damage  Cultural pressures  Most costly outcome is warfare  last decades of 20th century: three-quarters of war deaths were civilians Copyright © 2012, 2010, 2008 Pearson Education, Inc. All rights reserved.

The Complexity of Policy Choice  Fact about political goods: cannot always have them all simultaneously  Political system often has to trade one value to obtain another  Opportunity costs: lose in one area by committing resources to different good  Task of social science: discover conditions under which positive and negative trade-offs occur  People do not share values, may be serious conflicts  Governments should provide means for people to decide for themselves  Fact about political goods: cannot always have them all simultaneously  Political system often has to trade one value to obtain another  Opportunity costs: lose in one area by committing resources to different good  Task of social science: discover conditions under which positive and negative trade-offs occur  People do not share values, may be serious conflicts  Governments should provide means for people to decide for themselves Copyright © 2012, 2010, 2008 Pearson Education, Inc. All rights reserved.