1. POLICYMAKING Economic Policy Fiscal – government’s collection and spending of revenue Monetary - regulation of the money supply largely thru the activities of the Federal Reserve Foreign Policy Military Policy Social Policy Regulatory Policy

2. THE POLICYMAKING PROCESS 1. RECOGNIZING THE PROBLEM - PUBLIC AND POLITICAL AGENDAS 2. FORMULATING THE POLICY - LEGISLATIVE AGENDA 3.ADOPTING THE POLICY - Congress/President &Bureaucracy/Courts 4.IMPLEMENTING THE POLICY - role of federalism to promote and/or hinder 5.EVALUATING THE POLICY - cycle begins anew

3. ECONOMIC POLICY LAISSEZ-FAIRE VS. KEYNESIANISM intro of deficit spending if necessary to alleviate monetary instability and stimulate growth. Budget = $4 trillion 4,000,000,000,000.00 Debt = $ 17 trillion Deficit Spending = $ 744 billion John Maynard Keynes

4. Fiscal Policy how government raises and spends money REVENUE: 1. Federal income taxes (FICA) 2. Social Insurance taxes (SSA) 3. Borrowing (Treasury Bills/Bonds) 4.Other taxes (excise taxes) EXPENDITURES: 1. Entitlements 2. Defense these expenses are called: mandatory or 3. National Debt non-Discretionary Spending Fiscal year: October 1 st to September 30th The difference between the above is called: DISCRETIONARY SPENDING MANDATORY SPENDING DEBT REDUCTION DISCRETIONARY SPENDING Budget Crisis : the pie is only so big !!! BLUE and RED getting bigger

5. MONETARY POLICY ( relying on the manipulation of $ supply = MONETARISM) government’s regulation of the money supply: deals with inflation and deflation role of the FEDERAL RESERVE BOARD Seven member independent agency board appointed by a president and confirmed by the Senate for a 14 year nonrenewable term. the CHAIR is elected for a renewable four year term Ben Bernanke is most recent Chairman Alan Greenspan is the most famous Chair Janet Yellen - Chair

6. FOREIGN POLICY until the 20 th Century, USA heeded George Washington’s advice ”….avoid entangling alliances.” = ISOLATIONIST foreign policy Told Ya, but did Ya listen? Nooooooooooo !!!! But then… our own imperialist interests WW I WW II Cold War New World Order China War on Terrorism Foreign Policy Goals Department of State goals: - protect national security - prove world leadership in achieving peace and stability - insure balance of power - co-operate with other nations in resolving international crises - promote and protect human rights and democratic values - foster co-operative foreign trade and globalization of trade thru international compacts and organizations actors President Secretary of State foreign service National Security Council National Intelligence agencies - CIA, NSA, …etc

7. MILITARY POLICY1947 National Security Act creates Department of Defense civilian controlled and administered military lead in military preparation and action constitutionally, the DoD and US military under the authority of the POTUS as the Commander in Chief

8. SOCIAL POLICY We the People of the United States, in Order to create a more perfect Union, establish Justice, promote the general Welfare, do ordain and establish this Constitution. So government is charged with responsibility of looking out for its citizens: 1.Healthcare 2.Welfare 3.Education

10. Education Policy

11. REGULATORY POLICY Banking Labor Environment “captured agency”