Chapter 15 Economic and Environmental Policy.  Economy: a system of production and consumption of goods and services that are allocated through a system.

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Presentation transcript:

Chapter 15 Economic and Environmental Policy

 Economy: a system of production and consumption of goods and services that are allocated through a system of exchange  Laissez-faire doctrine: holds that private individuals and firms should be left alone to make their own production and distribution decisions (policymakers often disagree on the amount of government needed) Government and the Economy

 Regulator: US government plays a big parole as regulator of privately-owned businesses  Prevent restraint of Trade  Make businesses pay for indirect costs and externalities  Provide for equity when needed  Sometimes overregulation exists Government and Economy

Economic Policy

 Progressive Era: when reforms tried to stop the unfair business practices of new monopolies  Great Depression: when policymakers tried to stimulate economic recovery through regulatory policies designed to help and to restrain business Politics of Economic Policy

 New Social Regulations (1960s and 1970s): social goals affected policy which addressed three major areas 1.Environmental Protection 2.Consumer Protection 3.Worker Safety Politics of Economic Policy

 The Federal Reserve  Controlling interest rates to control inflation  Deficit spending  US Budget Managing Economy

 Rachel Carson wrote the Silent Spring: revealed threat of harmful pesticides and is cited to have helped spark Clean Air Act of 1963 and the Clean Water Act of 1965 Government and the Environment

 Oldest role of government with environment  National Parks run by National Park Agency  US Forest Service manages national forests  Dual Use Policy: parks and forests are nature preserves and natural resources; government permits required to obtain resources Conservationism

Endangered Species Act of 1973:  Directs federal agencies to protect threatened and endangered species  Authorizes programs to preserve natural habitats  Spotted owl debate (Owls vs. Jobs) Conservation and Politics

 1970: Sen. Gaylord Nelson (D-WI) creates the first Earth Day  1970: Environmental Protection Agency created  1980: Congress established Superfund program New Trends in Environmentalism

 2001: The Supreme Court finds that the EPA is to consider only public health and not industry costs in setting air quality standards  2006: Former Vice President Al Gore stars in “An Inconvenient Truth,” bringing debate about global warming to public Trends in Environmentalism

 Greenhouse Effects  Politicians disagree strongly on course of action  US largest source of emissions in world  US rejected Kyoto agreement  Support for policy growing as media and public interest grows Global Warming

 Gasoline prices have risen dramatically  Call by some to explore alternative energy sources  Hearing held in Congress with possible budgetary links Energy