1. Unit 4: The Politics of Public Policy Chapter 17: Policy-Making Process

2. Setting the Public Agenda Some Definitions Public Opinion – how the public feels about certain things Public Policy – the principle guide to administrative actions Public Agenda – issues that are: perceived by the political community as meriting public attention and governmental action.

3. Setting the Public Agenda We ASSUME things are always there Taxes Welfare Civil rights

4. Setting the Public Agenda Determining Policy Agenda No one person actually decides the agenda Forces affecting shared community/national beliefs Political values Custom and tradition Major/historical events Focus of political elites’ talk/press Policy Agenda

5. Legitimate Scope of Action Scope gets larger and larger What IS being done, should continue Changes make people want to INCREASE government policy (action) Economic crises Security issues and war

6. Legitimate Scope of Action Effects of Groups Organized groups (interest groups) Labor Business Social Unorganized groups Sometimes violent activities Frustration and anger over “relative deprivation” Being worse off than you think you SHOULD be

7. Legitimate Scope of Action Effects of Government Institutions Courts Force the other branches to effect policy change with rulings Set off a chain reaction Preferred course for unpopular causes The Bureaucracy Experts and advocates become source of proposals Seeking to expand department Push a personal agenda Not necessarily from the rank and file

8. Legitimate Scope of Action Effects of Government Institutions Senate Change in role envisioned by Founding Fathers Became a generator of new policies Not a regulator to moderate change Liberal agenda in the 60s Conservative agenda in the 80s

9. Legitimate Scope of Action Effects of Other Institutions Media Methods of steering policy Place items in national spotlight Publicize items that are already there Cause and Effect or Effect and Cause???? States’ actions National policy can adopt successful state policies State lawsuits can affect businesses nation-wide

10. Making Decisions Cost/Benefit analysis Cost = who bears the burden to support the policy Benefit = who receives the positive outcomes of the policy

11. Making Decisions Considerations Cost perception = who the people THINK bear the costs Legitimacy = whether the beneficiaries SHOULD receive the positive outcomes Balance two factors Who will/should benefit Who will/should pay

12. Making Decisions Majoritarian Politics Cost / Benefit Benefits spread to large number of people Costs spread to large number of people Role of interest groups Minimal Why join a group if you’ll benefit anyway? Controversial Over matters of Cost Ideology NOT between rival interest groups

13. Making Decisions Interest Group Politics Cost / Benefit Benefits to a small number of people Costs spread to a small number of people (the rivals of the beneficiaries) Role of interest groups HUGE (duh) Rival sides will be effected a lot

14. Making Decisions Client Politics Cost / Benefit Benefits to a small number of people Costs to a large number of people Role of interest groups Beneficiaries have huge interest in organizing Burden is so spread out, little organized effort against policy

15. Making Decisions Client Politics Localities can benefit Infrastructure projects (MONEY) Pork-barrel legislation Can be valid or not Logrolling = vote trading between Congressmen to pass legislation filled with pork Legitimacy is a major factor in determining success Earmarks legislative provisions that directs approved funds to be spent on specific projects, specific exemptions from taxes or mandated fees.

16. Making Decisions Entrepreneurial Politics Cost / Benefit Benefits to a large number of people Costs to a small number of people Role of interest groups Burden is focused so an interest group may try to kill the policy Benefits are spread out so little incentive to join an interest group to get it passed Needs the work of dedicated, hard-working people (person) to push agenda Policy Entrepreneurs = dedicated, hard-working people (person) to push agenda

17. Making Decisions Entrepreneurial Politics Rise in entrepreneurial politics Role of media Decentralization of Congress (drop in power of the parties) Shift in social values

18. Making Decisions COSTS BENEFITS A C D B

19. Business Regulation – Wealth and Power Does Economic Power DOMINATE Political Power? Wealth can buy influence Politicians and business leaders often come from the same social class

20. Business Regulation – Wealth and Power Does Political Power Threaten Economic Power? Politicians get more votes from the many proletariat Politician get less votes from the few bourgeoisie

21. Majoritarian politics and regulation Reflects the views of the majority of voters Does not attack the general business community Examples Sherman Act Clayton Act Creation of the Federal Trade Commission (FTC)

22. Majoritarian politics and regulation Feelings from the public Strong Unfocused Was the “bad guy” a single big business? Was the “bad guy” any business of a certain size? Was the “bad guy” just monopolies? Public would benefit from corporate competition Price Quality

23. Majoritarian politics and regulation Feelings from the business world Vague wording of laws meant that the laws would have little effect The MANY small businesses would benefit by getting legal protection from mega- business tactics

24. Interest group politics and regulation Rivals FIGHT for and against legislation Examples using business owners vs. labor unions Wagner Act LABOR VICTORY Right to form unions Created National Labor Relations Board 5 members Each appointed by the sitting president Presidential appointments can tilt the perspective

25. Interest group politics and regulation Examples using business owners vs. labor unions Taft-Hartley Act Business VICTORY Right to restrict some union activities Closed Shops Secondary Boycotts Court order can be used to block strikes in some circumstances

26. Interest group politics and regulation Examples using business owners vs. labor unions Landrum-Griffin Act Business VICTORY Change the organizational structuring practices of unions to prevent corruption Occupational Safety and Health Act Labor VICTORY Create OSHA

27. Client politics and regulation Examples of Client Politics and Regulation Price Floors (dairy and produce) Lowest legal price which can be charged for a product Helps the producer (makes more profit) Helps the economy (keeps unemployment down) Costs to the people Minimal or Unknown

28. Client politics and regulation Examples of Client Politics and Regulation Protectionist policies Importation restrictions Limit the amount of a good brought into the country Apply a tariff to an imported good to artificially increase its cost to the consumer Helps The domestic producer The domestic economy (unemployment)

29. Client politics and regulation Examples of Client Politics and Regulation Protectionist policies Costs to the people Minimal or Unknown

30. Client politics and regulation Disaster Relief Programs go to specific localities Public feelings These people need the help These people are victims

31. Client politics and regulation Disaster Relief Highlights the need for LEGITIMACY Client politics NEED to be considered worthy “Illegitimate” beneficiaries make due with regulation more than with subsidies

32. Client politics and regulation Disaster Relief Highlights the need for LEGITIMACY “Illegitimate” beneficiaries make due with regulation more than with subsidies Relies on “Insider Politics” Deal with key Washington decision- makes (“inside the loop”) Don’t count on public support Create IRON TRIANGLES

33. Entrepreneurial politics and regulation Relies on creating PUBLIC support Muckrakers Ralph Nader Policy entrepreneur needs to adopt a moralistic tone At times, the agency can become too “cozy” with those it was created to regulate (captured)

34. Entrepreneurial politics and regulation Remedies for capture Modern laws are more carefully worded when written Specific standards Specific timetables for implementation Agencies regulate several different industries so they have no specific opponent to worry about

35. Entrepreneurial politics and regulation Remedies for capture Public interest groups oversight (after creation of agency) Media coverage Federal Courts (to ensure regulation is followed)

36. The issue of “Agency Capture” Majoritarian Politics Not an issue No well-organized or enduring opponents Interest Group Politics Not an issue Agencies are in cross-fire of opposing groups

37. The issue of “Agency Capture” Client Politics Not an issue No need, agency was created for those who would want to capture Entrepreneurial Politics Can be an issue Remedies in place to safeguard agencies

38. Perceptions, Beliefs, Interests and Values Opinions change over time regarding: Legitimacy What are the true Costs Who are the true Beneficiaries

39. Perceptions, Beliefs, Interests and Values The Struggle to Alter Public Opinion The “here and now option” is the default feeling for most people The cost argument is stronger than the benefit argument – sharper reaction to what is lost than what is gained

40. Perceptions, Beliefs, Interests and Values Values change over time: What is good for the country? What is good for my community? What is good for the people?

41. Deregulation Arguments FOR deregulation Regulation of prices in competitive industries keep prices artificially high Regulation also keeps competition down

42. Deregulation Arguments FOR deregulation The market (law of supply and demand) will make corrections in the best interest of The economy The consumer The producers

43. Deregulation Arguments AGAINST deregulation Makes things more complicated Process regulation may be a good thing Worker safety Consumer safety Environmental safety … but Price or Product regulation is a BAD thing