1. Unit 6 Review 20 Multiple Choice 1 FRQ

2. The Policymaking Process Every policy has a unique history, but each generally goes through five basic steps. 1.Agenda Setting 2.Policy Formulation 3.Policy Adoption 4.Policy Implementation 5.Policy Evaluation Public Policy

3. Making a Decision Politics a process of settling disputes about who benefits and who ought to benefit People prefer programs that provide benefits at low cost Perceived distribution of costs and benefits shapes the kinds of political coalitions that form but not who wins Public Policy

4. Types of Policy Politics: Breakdown CostsBenefits MajoritarianLarge group Interest GroupSmall GroupSmall group ClientLarge groupSmall group EntrepreneurialSmall groupLarge group Public Policy

5. Fiscal Policy Managing the economy by the use of tax and spending laws. Where the Money Comes From – Federal Income Taxes – Social Insurance Taxes – Borrowing – Other taxes Where the Money Goes – Entitlement programs – National defense – National debt Economic Policy

6. Monetary Policy Managing the economy by altering the supply of money and interest rates Monetary policy is the government’s control of the money supply – Too much money in system leads to inflation (devaluation of dollar) – Too little money in circulation leads to deflation Economic Policy

7. Economic Theories & Political Needs Monetarism – inflation occurs when there is too much money chasing too few goods; – Govt reacts by cutting amount of $ in circulation -triggers recession – Monetarists advocate increase in money supply about equal to the rate of economic growth (slow and steady wins the race) Keynesianism – government should create right level of demand – Too little = production declines Govt should spend more to stimulate econ – Too much = prices rise, shortages occur Govt should tax more or cut spending Planning – free market too undependable to ensure economic efficiency; therefore government should control it – Government should have ability to set prices and wages to create healthy and stable economy Economic Policy

8. Economic Theories & Political Needs Supply-side tax cuts – need for less government interference and lower taxes (opposite of planning advocates) – Cut taxes people will save and invest greater econ productivity will increase tax revenue (and people won’t feel the need to “cheat” on their taxes!) Ideology and theory: people embrace an economic theory partly because of their political beliefs – Conservative: Monetarism, Supply-side (less govt) – Liberal: Keynesian (more programs) – Socialist: economic planning “Reaganomics”: Combination of monetarism, supply-side tax cuts, and domestic budget cutting – Slowed govt spending on most programs (but raised military $$) – Cut income taxes = big deficits!! But the economy was stimulated! Economic Policy

9. The Machinery of Economic Policy Making The Fed (Federal Reserve Board) – 7 members, Pres appointed-Senate confirmed, 14yr terms – Regulates the supply of money and interest rates (=monetary policy) – Independent of Pres and Congress (though sometimes questionable) Congress – Most important! Creates the nation’s tax and spending laws (= fiscal policy) Economic Policy

10. Social Policy: An overview Government’s responsibility for the welfare of its citizens remains controversial and disputed today Generally 2 types of programs: – Majoritarian- benefits almost everyone Ex. Social Security, Medicare – Client- benefits only a small number Ex. Medicaid, Food Stamps Means tested- must fall below a certain income level to qualify Entitlement programs: government-sponsored programs providing mandated benefits to those who meet eligibility requirements Social Policy

11. Client welfare programs: AFDC Problems: – States complained about federal regulations – Public opinion turned against program Corruption Weakened the family (got more money for more kids) – Composition of program participants changed 1970: half of women were widowed/divorced 1994: only 1 quarter, the rest never married Also, 2/3 of women were on for 8 years or more! Temporary Assistance to Needy Families (TANF) 1996 – Stricter requirements and limits on how long families could collect – Lowered welfare caseload by 60% Social Policy

12. Pros and Cons: Client politics Programs pass if cost to public not perceived as great and client considered deserving Americans believe today that able-bodied people should work for welfare benefits Americans prefer service strategy to income strategy (give service/training rather than money) – Charles Murray: high welfare benefits made some young people go on welfare rather than seek jobs – No direct evidence supports Murray Social Policy

13. Checks on President’s Power Political rather than constitutional Congress controls the $$$ War Powers Act of 1973- restricts the president – If Pres commits troops he must report it to Congress within 48 hours – Only 60 day commitment w/o declaring war – Previously, Congress could use legislative veto to bring troops home  Has had very little influence, politically impossible (Congress will of course support successful military action) Military/Foreign Policy

14. Effects of War Powers Act Congress rarely invokes it – Ford, Carter, Reagan, Bush, Clinton all sent troops w/o authorization Politically impossible – Congress wouldn’t challenge successful military action (even Vietnam) Constitutionality is questionable (so they don’t push it) Military/Foreign Policy

15. Structure of Defense Decision Making National Security Act of 1947- created Dept of Defense – Headed by Sec. of Defense (must be civilian)- command authority over defense on behalf of pres – Sec. of Army, Air Force, Navy, (also civilians) manage daily functions – Joint Chiefs of Staff (military) Branches of military kept separate- Why? – Fear if unified they would become too powerful – Desire of services to preserve autonomy – Inter-service rivalries intended by Congress to increase info Military/Foreign Policy

16. Majoritarian Politics Clean Air Act 1970- tough restrictions on pollutants from automobiles Started as entrepreneurial- public w/ media support demanded changes Small provision of law said states would have to restrict use of cars if pollution problem persisted – Huge popular opposition, efforts failed (Congress and EPA backed down) Consumers, auto industry, unions objected Loss of horsepower, competitiveness, jobs Clean Air Act revived in 1990 w/tougher restrictions, but a 20 year deadline Most current laws target particular industries Environmental Policy

17. Majoritarian Politics When people believe costs are low: – National Environmental Policy Act 1969 (NEPA) Required Environmental Impact Statement (EIS) for any project “significantly affecting human environment” Overwhelming support, but caused lots of lawsuits and delays When people believe costs are high: – Increase in gas tax – Most would pay, most would benefit, but benefits not obvious More accepted if benefits concrete, like highways, bridges, etc Environmental Policy

18. Good to Know Understand the current implications of policy initiatives…especially social. Look out for graphs! Know examples of environmental policy