2. • Problem Recognition – identification of an
issue that disturbs the people and leads them
to call for governmental intervention
3. • Agenda Setting – government recognition that
a problem is worthy of consideration for
governmental intervention
4. • Policy formulation – identification of
alternative approaches to addressing the
problems placed on government’s agenda.
5. • Policy adoption – the formal selection of
public policies through legislative, executive,
judicial, and bureaucratic means
6. • Budgeting – the allocation of resources to
provide for the proper implementation of public
policies
7. • Policy implementation – the actual
administration or application of public policies
to their targets
8. • Policy evaluation – the determination of a
policy’s accomplishments, consequences, or
shortcomings
9. Policy Process
• Problem Recognition and Definition
– Public policy is NOT the answer for ALL
disturbing problems
– Hurricanes no, consequences of hurricanes
yes
10.
11. Policy Process
• Agenda Setting – problem must be
brought to the attention of public officials
– agenda – set of issues to be discussed or
given attention
– systemic agenda – all issues within
jurisdiction of governments
– governmental agenda – issues that will
receive active and serious attention
12. Policy Process
• Policy Formulation
– policy formulation – crafting appropriate
courses of action to resolve public problems
– Involves both political (what should be done)
and technical (what will be done) aspects
13. Policy Process
• Policy Adoption
– policy adoption – the approval of a policy
proposal by the people with the requisite
authority, such as a legislature
14. Policy Process
• Budgeting
– most policies require money to be carried
out
– policies can be killed by inadequate funding
or lack of funding
15. Policy Process
• Policy Implementation
– policy implementation – the process of carrying
out public policy through governmental agencies
and the courts.
– Authoritative techniques – people must be
directed or restrained by government. Product
safety, broadcast obscenity, food & health.
– Incentive techniques – encourage people to act in
their own best interest by offering payoffs or
financial inducements. Tax deductions, credits,
subsidies, sanctions by high taxes (tobacco,
pollution).
16. Policy Process
• Policy Implementation (cont.)
• Capacity techniques – provide information,
education, training. Assumes people lack the
capacity. Job training, interest rate information,
nutrition information.
• Hortatory techniques [hawr-tuh-tawr-ee]–
appeal to people’s better instincts. Just Say No.
Don’t Be a Litter Bug. Don’t Mess with Texas.
Only You Can Prevent Forest Fires.
17. Policy Process
• Policy Evaluation
– policy evaluation – the process of
determining whether a course of action is
achieving its intended goals.
21. Social Welfare
• The Origins of Social
Welfare – as society
became more urban
and industrial, people
became less self-
sufficient. Great
Depression reinforced
idea that hard work
alone did not guarantee
economic security.
22. Origins of Social Welfare
• Income Security
– Social Security Act –
1935 law that
established
• old age insurance
(Social Security)
• assistance for the
needy, children, and
others, and
• unemployment
insurance.
23. Origins of Social Welfare
• Health Care
– public health
programs –
increased life
expectancy from 47
in 1900 to 78 in
2008.
– expanding health
care coverage –
Medicare and
Medicaid (1965)
24.
25. Social Welfare
• Non-Means Based Programs – benefits
are provided regardless of income (or
“means”) of recipients
26. Non-Means Based Programs
• Old Age, Survivors, and Disability
Insurance
– Social security not a pension fund.
– “This year, the system will pay out more in
benefits than it receives in payroll taxes, an
important threshold it was not expected to
cross until at least 2016, according to the
Congressional Budget Office.” New York
Times March 15, 2010
27.
28. Non-Means Based Programs
• Unemployment
Insurance
– About ½ of people
unemployed receive
benefits
– Current
unemployment rate
8.8% or 13.5 million
people (April 1)
29. Social Welfare
• Means-Tested
Programs –
recipients’ incomes
(means) must fall
below a certain level
• 2011 FPL (Family of
four): $22,350
31. Means Tested Programs
• Family and Child
Support
– dependent children
without fathers
– AFDC TANF
32. Means Tested Programs
• Food Stamp
Program
– originally designed
to increase demand
for farm products
– average recipient
receives $95/month
33. Social Welfare
• The Effectiveness of Income Security
Programs
– entitlement program – those who meet the
criteria are “entitled” to receive benefits
– funds must be provided every year unless
the law is changed
34.
35. Health Care Policy
• Rising cost of health care
– people living longer, need more care
– more expensive tests and treatments
– expansion of private health insurance
(people can afford more)
– higher quality, higher labor costs
– U.S. focuses on cure, not prevention
(prevention is cheaper)
36.
37. Health Care Policy
• Medicare – medical care for the elderly
– will be stressed by the aging of the
population
38. Health Care Policy
• Medicaid – medical care for the poor
– available to SSI and TANF recipients
– 58 million people, $204 billion (2008)
– states set eligibility
41. Economic Policy
• The Nineteenth Century
– Very little regulation (steamboat inspection,
trade with American Indians)
– Post-Civil War industrialization brought need
for more regulation
– Interstate Commerce Act 1887 to regulate
railroads
– Sherman Anti-Trust Act 1890 to prohibit
monopolies
42. Economic Policy
• The Progressive Era – middle class
support for bringing corporate power
under the control of government.
Regulation, consumer protection.
Transition from laissez-faire to the
interventionist state.
43. The Progressive Era
• Financial Reforms
– protect consumers in banking (FDIC)
– control abuses in the stock market (SEC)
44. The Progressive Era
• Agriculture and Labor
– protection of unions (National Labor
Relations Act)
– Fair Labor Standards Act 1938 – shorter
work week, minimum wage, no child labor
45. The Progressive Era
• Industry Regulations
– Communications (FCC), commercial
aviation (Civil Aeronautics Board), trucking
(Motor Carrier Act)
46. Economic and Social Regulations
• economic regulation – government
regulation of business practices, industry
rates, routes, or areas serviced by
particular industries.
• social regulation – quality and safety of
products, conditions under which they
are produced. Quality of life.
47. Deregulation
• deregulation – reduction in market
controls in favor of market-based
competition.
• Regulations affected competition, costs.
Economic deregulation continues, social
regulation remains
48. Economic Policy
• Stabilizing the Economy – we desire
economic growth, rising national income,
high employment and steady prices. We
don’t want inflation or recession.
49. Monetary Policy
Controlling the Money Supply
• monetary policy – manage money supply
and influence interest rates
• Board of Governors – makes economic
decisions
• reserve requirements – portion of deposits
that must be retained
• discount rate – interest rate for banks to
borrow from Fed
• open market operations – buy/sell
government securities
50. Fiscal Policy
Taxing and Spending
• fiscal policy – deliberate taxing and
spending to maintain economic stability
