Public Policy - Process

Public Policy-Anything the government chooses to do or not to do.

Political Agenda Deciding what government is going to “do” Constantly changing “legitimacy” plays a huge role

Legitimacy Shared political values – What we believe is needed-welfare Custom and Tradition – Habits are hard to break Major events – Wars, natural disasters

Who forces policy ? 1.Groups Organized labor African Americans Women Immigrants

Who forces policy? 2. Institutions Courts Bureaucracy/President Senate – Not the Founders plan!

Who forces policy? 3. Media Support and further the efforts of other groups Create their own

Now that you mention it… Cost – burden (monetary or not) that some people must bear if the policy is adopted. Perceived or actual Benefit – the satisfaction (monetary or not) that people will receive if the policy is adopted

Keep in mind… Perception is everything!! – Stem cell research – Clean coal – Ethanol – KCHIP Who is going to cover the cost?

Keep keeping in mind… Legitimacy! – Welfare vs Aid to dependent children Are they deserving? “Who will benefit vs. who ought to benefit”

Types of Policy Outcomes Widely DistributedConcentrated Widely Distributed Majoritarian Politics Social Security Defense Policy Client Politics Aid to Public Education Agriculture Subsidies Concentrated Entrepreneurial Politics Air Pollution Controls Auto Fuel Economy Interest Group Politics Tax Policy Telecommunications Benefits Costs *Policy entrepreneurs = Consumer advocates

Applying Policy to Business Regulation Majoritarian politics Big costs Broad benefits Examples – Sherman Antitrust Act – Federal Trade Commission

Applying Policy to Business Regulation Interest Group Politics One specific group bears the cost Another specific group reaps the benefit Examples – Organized labor

Applying Policy to Business Regulation Client Politics We all pay – a few benefit Regulation or support of certain professions – Agriculture Adjustment Act – Beauticians, barbers – Tobacco farmers

Applying Policy to Business Regulation Entrepreneurial Politics Costs are paid by a few Benefits everyone Fear of industry “capture” Examples – Pure Food and Drug Act