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