1. Making Domestic Policy U.S. Government POL 110

2. Topics The government and the economy Social Security and Medicare Policy decisions and how the government reconciles competing interests among groups

3. The Government and the Economy The deficit and the national debt The three reasons why the debt persists –Economic –Substantive –Political What is a recession?

4. The Government and the Economy, Continued Monetary policy (The Treasury Dept.) The buying and selling of Treasury securities –The reserve requirement –The discount, or overnight, rate Fiscal policy (The government) –Raising or lowering taxes –Increasing or decreasing spending

6. Social Security and Medicare Four reasons Medicare costs are rising –Life expectancy is going up –Medical care and drugs are costing more –The program encourages people to seek medical care –Fraud by health care providers Health Savings Accounts (HSAs)

7. Social Security and Medicare, Continued Five strategies to save Social Security –Raise the retirement age –Reduce the benefits of high wage earners –Raise Social Security taxes –Increase the wage gap –Invest Social Security tax contributions into private mutual funds

9. Policy Decisions and How the Government Reconciles Competing Interests Public policy Perceived costs and benefits Establishing legitimacy

10. The four different kinds of politics –Majoritarian –Client –Interest group –Entrepreneurial Policy Decisions and How the Government Reconciles Competing Interests, Continued

11. Summary The government and the economy Social Security and Medicare Policy decisions and how the government reconciles competing interests among groups