Public Policy Flashcards
Purposes of Public Policy
Three Purposes:
- Solving a Social Problem
- Countering Threats
- Pursuing An Objective
Issue-Attention Cycle
Requires policy makers to act quickly, before the public becomes bored and loses interest
Incrementalism
The slow, step-by-step approach to making policy
Agenda Setting
Identifies the social and economic problems, redefines them into political issues, and ranks them in order of importance
Policy Formulation/Adoption
Can be accomplished through the legislative process in Congress or by using executive orders
Policy Implementation
Puts the policy into effect by enforcement through the appropriate government agency
Policy Evaluation
Seeing whether or not the policy implemented actually works
Policy Fragmentation
Where many pieces of legislation deal with parts of policy problems but never deal with the entire problem
Mixed Economy
Both government and private industry play a role in the economy
Laissez-Faire
Belief that the government should never become involved in the economy
Keynesian Economics
Holds that the government can smooth out business cycles by influencing the amount of income individuals and businesses can spend on goods and services
Deficit Spending
Funds raised by borrowing rather than taxation
Supply-Side
Argument that the government should cut taxes and spending on domestic programs to stimulate greater production
Reserve Requirement
The amount of money banks are required to keep on hand
Discount Rate
The interest banks pay to the Federal Reserve Banks for borrowing money
Open Market Operations
The Federal Reserve can buy/sell government bonds
Office of Management and Budget (OMB)
Responsible for initiating the budget process
House Ways and Means Committee
Deals with the taxing aspects of the budget
Authorization Committees
Decide what programs Congress wants to fund
Appropriations Committees
Decide how much money to spend for those programs that have been authorized
Budget Reform Act of 1974
Created the Congressional Budget Office
Congressional Budget Office
Has budget committees in both houses of Congress that set their own revenue and spending levels
1990 Budget Enforcement Act
Was an effort to streamline the budget process and make it easier to arrive at a compromise budget
Mandatory Spending
Spending that is required by law in order to fund programs (Social Security, Entitlement Programs, Medicare)
Discretionary Spending
Spending that is not required by law to fund programs (Defense, Education, Highways, Research Grants, and Government Operations)
Balance of Trade
The ratio of imported products to exported products
Trade Defecits
Occur when imports exceed exports and cause wealth to flow from a nation
General Agreement on Tariffs and Trade (GATT)
Works to lower tariffs and quotas and reduce unfair trade practices (Group evolved into the World Trade Organization (WTO))
North American Free Trade Agreement (NAFTA)
United States, Canada, and Mexico effectively removed import tariffs from one another
Social Insurance Programs
Are national insurance programs into which employers and employees pay taxes
Public Assistance Programs
Are a result of condition and a government responsibility to help the needy
Cost of Living Adjustment (COLA)
Help recipients of Social Security maintain the standard of living (Put a strain on Social Security)
Medicare
Provides government assistance to people older than 65 for health care
Medicaid
Provides medical and health-related service for low-income parents, children, seniors, and people with disabilities
Supplemental Public Assistance Programs (SSI)
Help the disable and the aged who are living at or near the poverty level
Food Stamps
Meant to improve the diet and increase the buying power of the poor
Welfare Reform Act (1996)
Meant to reduce the number of people living on public assistance (Established TANF, required adults to find work within two years, placed a limit of 5 years to live off of welfare, prohibits illegal immigrants from getting assistance)
Patient Protection and Affordable Health Care Act (Obamacare, 2010)
Allows the federal government to fine individuals who do not participate in an insurance program
