1. Domestic Policy Designing Policy for Domestic Problems

2. The Policy Making Process 1. Agenda Setting- recognizing an issue as a problem that must be addressed. Problems are brought to the political agenda by citizens, interest groups, the media or government groups. 2. Policy Formulation-various policy proposals and alternatives are discussed in Congress and by public 3. Policy Adoption- adopting a plan of action to solve a problem. Congress may pick a specific proposal and bill is passed

3. 4. Policy Implementation - The bureaucracy, courts, executive branch carries out the policy 5. Policy evaluation - after policy is adopted people in government and outside conduct studies to judge effectiveness of program.

4. Health Care Rapidly rising health care costs Health care accounts for 15% of the total US economy We spend twice as much as percentage of GDP as other industrial countries Government health care programs include: Medicare - designed to support elderly regardless of income and Medicaid- designed to subsidize health care for the poor Second largest spending program, after Social Security

5. Health Care continued 47 million Americans, about 15% of population, do not have health insurance 17.3% of US spending went to Health care in 2009 National Health Insurance- national government take over function of providing health care insurance - called single payer plan Universal Health Care Plan with both employer and government insurance plans Health Savings Accounts- tax free savings account to pay for private health care

6. Entitlement Programs These are programs that the government has promised to pay for such as Social Security and Medicare.They are supported with payroll taxes. Entitlements are a rising part of the national budget, especially due to the increasing age of the population and the rising costs of health care Since two-thirds of the budget is mandatory, significant reductions in government spending and deficits cannot be made without overhauling these popular programs.

7. Discretionary Spending These are programs that the Congress can change funding for. They include programs like defense, education, the environment, and transportation This makes up one-third of the entire US budget

8. Entitlement Solutions What could Congress do to address the increasing costs of social security? Raise the retirement age Increase the payroll taxes for upper income groups Reduce Benefits Let people set up private retirement accounts that are tax free.