1. Public Policy #2: Gov & Econ
Who is the nation’s largest employer?

2. Public Policy: Gov’s course of action on any topic
Environmental Policy
Drug Policy
Tax Policy
How does the gov decide what to do?
What is the #1 issue facing America today?

3. Role of Gov in Economy Regulate business: Prevent abuse:
OSHA – job safety
SEC – insider trading
Protect consumers: FDA, FCC
Negative Externalities: EPA
Promote competition: antitrust legislation

4. 2. Provide Public Goods
Public Goods: products the gov provides for free (via taxes) that are available to all
Library, Park
Privatization: public companies that become private
Garbage
Hospitals

5. Should the post office be privatized?

6. 3. Economic well being Provide education, clean food / water Medical?
Who gets medical coverage provided for by the gov today?
Should the gov provide health care for everyone?

7. 4. Redistribute income
Transfer payment: take money (via taxes) from 1 group to give to another
Medicaid, EBT, Head Start, WIC
Is this fair?

8. 5. Stabilize Economy
What has the gov done to try to fix our current recession?
Cut taxes
Increased govt spending: “stimulus package”
Help for foreclosures
Cash for Clunkers
Tax Credit for buying a new home

9. What should the government do to fix the economy?