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Who can convince decision makers that there is a problem? |
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media interest groups political leaders living day-to-day relevance |
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Problem Identification Policy Formulation Policy Adoption Implementation Impacts Feedback Agenda Setting |
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Economic Policy Indicators |
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Employment Prices Growth Interest Rates International Balances American Economy |
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Consumer Price Index: basic figure that measures increase in prices; the goal is to get close to 0. |
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Gross Domestic Product: measures growth; value assigned to goods and services produces in the U.S.
Output measured in dollar terms - ideally increasing |
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Gross Domestic Product subtracting out inflation
(if economy grows at 9% and inflation is 2% real GDP = 7%) |
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economic downturn; when for two quarters in a row, GDP decreases |
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trade + currency + tourism + foreign aid + capital flows |
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Sectoral change in American economy: |
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once dominated more by goods, but now dominated more by services |
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Difficult to tell what is an American company and what is an international company now. Huge amounts of American investments overseas. |
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sometimes within countries, but mostly between countries that are developed and those that are underdeveloped |
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Federal Reserve System (1913) Functions |
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1. Relatively independent body that could try to avoid the recession and depressions that were common in the 1800s
2. Functions include regulating banks |
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Federal Reserve System (1913) Board of Governors |
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7 members appointed for 14 year terms/ The chairman only has a 4 year term. |
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Federal Open Market Committee |
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Use rates of various types to influence monetary policy. One of the most critical components. They meet secretly 8 times a year. |
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rates:
discounts - the interest rate that the fed gov charge private banks federal funds- allows interbank borrowing virtually overnight (currently 2.25% last year is was 5.25%) |
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During recession, interest rates go ___________. |
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Definition
down; to stimulate the economy and make it easier to borrow |
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if the worry is inflation, interest rates go ________. |
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up; government sells more bonds so that money ends up with the federal government |
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if worried about inflation, the reserve requirement is increased to slow down the economy. If the worry is recessin, the opposite occurs. |
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Executive sector of fiscal policy: |
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President, Office of Management Budget (OMB), Treasury, CEA |
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Congressional fiscal policy |
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budget, appropriations, revenue committees
budget committees in each house, revenue committees decide how to spend it. |
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budget tax laws off-budget items - government makes certain guarantees to people |
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Tariffs - tax on imported good Quotas - limiting certain kinds of imports by volume; at one point placed on automobiles Trade Agreements - (NAFTA) Exchange Rates |
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North American Free Trade Agreement- U.S., Mexico, Canada |
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federal budget uncontrollable factors = |
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Key actors in federal budget |
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agencies, OMB, & president, Congress (especially key $$ committees) |
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runs from October 1, 2008 - September 30, 2009 (budgetary year) |
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someone is automatically eligible to certain benefits if they meet certain benefits set by law (42% of budget goes to social security, Medicare, & Medicaid) |
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Social Welfare Policy Goals |
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Redistribution - subsidizing certain groups or activities
Access - programs that provide equal access to college, healthcare, etc.
Security - retirement, disability benefits, unemployment insurance |
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services or income based on contributions:
- able to draw benefits based on prior contribution - means-tested meaning that eligibility is based on economic circumstances |
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poverty rate trends indicate that poverty has gone up because population has grown, but overall has gone down since the 1960s |
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largest number of poor are under 18 seniors make up less than 10% of the total |
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largest number of poor are white (42%) black poor (25%) hispanic poor (25%) whites-poverty rate (9%) |
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those without high school diploma - 23% With high school diploma - 10% those with some college - 7% those with bachelor's - 3% |
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poverty higher in central cities - 18% lowest in suburban areas - less than 10% |
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contributory vs. non-contributory |
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Efforts prior to New Deal: |
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savings, private charity, family, states, federal pensions for veterans |
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Social Security Act, 1935 comprised of: |
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Definition
OASDI -Old Age and Survivors Disability Insurance ($900/mo)
Unemployment Compensation - Vary from state to state - usually make 1/3 of what you would have been making at our job
Aid to Families with Dependent children (AFDC) - |
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Temporary Assistance for Needy Families, 1996
- money is half federal half state - lifetime limits placed on benefits - law also created penalties dealing with conduct |
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Supplementary Security Income, 1972
discovers that there are a number of people who draw social security and are still poor |
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public housing- have to pay 30% of income in rent - If you are economically successful you are kicked out |
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Preschool Program where most of the kids come from families that make under $15,000 annually |
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Makes it easier for people to afford college |
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Medical healthcare for the elderly and disabled. Providing hospital care, doctor visits, etc. Not directly giving them money. 43,000,000 Americans are receiving benefits fro Medicare. Costs nearly 400 billion dollars a year. This is a contributory type of assistance, meaning that those who receive Medicare have paid into a fund prior to receiving the benefits |
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Medical healthcare for the poor. This is a non-contribtor type of assistance, meaning that those who receive these benefits have not paid into a fund prior to receiving the benefits. 38 million Americans/ $260 billion a year |
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Food stamps- in kind / non-contributory. (over 25 million people, nearly 29 billion dollars) the average monthly recipients receive about 93 dollars |
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women, infants & children |
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finding an indicator like the Consumer Price Index and entitlements are designed to match the economy. This allow change to become automatic so that Congress need not vote before passing the changes. |
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just under $6,300 per person on healthcare: 2 trillion annually |
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Much of the controversy here deals with how do you actually get healthcare? Being insured in the US is the "ticket" to healthcare. |
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Growth in entitlements Social Security Demographics Health care Education |
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Tax expenditures Other middle-class benefits: subsidies, HOPE Corporate welfare: Government subsidizing business Politics of subsidy: constituencies, invisibility, no stigma |
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congress shall make no law respecting an establishment of religion or prohibiting the free exercise thereof; or abiding the freedom of speech, or of the press; or the right of the people to peaceably assemble, and to petition the government for a redress of grievances. |
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14th amendment key clauses:` |
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privileges and immunites, due process |
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select guarantees in the Bill of Rights and their related case law are applied to the states |
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fundamental rights vs. government interest requires ___________________ for the government to withhold fundamental rights |
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"compelling interest" with strict scrutiny |
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Lemon v. Kurtzman (1971) test: |
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secular purpose neither advance nor inhibit religion avoid excessive entanglements between government and religion |
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The Lemon Test decides whether something is unconstitutional under the _____________ clause. |
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School Prayer violates_____________. |
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The establishment clause of the 1st amendment. |
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Courtcase ended prayer in schools |
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Permitted in under the establishment clause |
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moment of silence aid to religious schools for books, buses, and released time |
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Case that said if school taught evolution they had to also teach Intelligent design |
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Edwards v. Aguillard (1986) |
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Free Exercise Example cases |
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Flag Salute School Attendance Medical Treatment |
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Case in which Amish believed they shouldn't have to attend school for certain amount of time and court ruled that adolescents must attend school at least until 8th grade |
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Wisconsin v. Yoder (1972) |
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The free exercise clause is often cited by _____________ regarding medical treatment. |
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Greatest speech protection: |
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Court overturned laws prohibiting language and other forms of expression; argues hate crime involves action |
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arm bands: Tinker v. Des Moines Independent School District Flag-burning: Texas v. Johnson (1984) |
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"Is the offense in question speech?" |
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Money has to be neutral rather than given to special groups such as religious groups |
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"Speech - plus" = conduct |
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slander obscentity - uncertainly, evolving standards |
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3 part test in Miller v. California |
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1. Average person applying contemporary standards must find that the work as a whole appeals to prurient interests
2. Law must explicitly define what is prohibited as obscene
3. Work as a whole must lack serious literary, artistic, political or scientific value |
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case established the "right to privacy" specifically marital privacy |
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Griswold v. Connecticut, 1965 |
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Roe v. Wade, 1973 established: |
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right to privacy and right to abortion way to regulate is by "undue burden" some states require doctors provide women with information |
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Challenge to 1816 Georgia anti-sodomy law; upheld by Georgia but overturned later |
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Bowers v. Hardwick (1986) |
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Case that overturned Georgia anti-sodomy law involving a heterosexual couple |
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eliminated sodomy law in Texas |
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Oregon's Death with Dignity Act |
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legal doctor assisted suicide |
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Three eras of foreign and defense policy: |
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cold war, post-cold war, post 9/11 |
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isolationism in early America is consistent with: _________________; and ends with _______________. |
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Monroe Doctrine, Washington's Farewell Address; WWII |
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the idea that two major political parties would come to a general consensus; “debate stops at the water’s edge” |
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one country falling to communism would tip other countries |
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Notion that would counter any move that the Soviets would make to contain the Soviet's expansion |
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Secretary of State George Marshall stated that the U.S. would provide economic support to western europe, consistent with the notion of containment it would promote economic development and growth. |
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The U.S. would help any country under threat of government takeover; Greece & Turkey were unstable |
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North American Treaty Organization, 1949:
Obligates the U.S. to defend Western Europe. U.S. is essentially providing a nuclear shield |
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when U.S. had nuclear advantage to escalate conflict to the brink of nuclear war so that they will back down |
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Mutually Assured Destruction |
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Communist Hunt; helped launch Nixon's career- time marked by black-listing, intimidation |
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reconnaissance identifies the presence of long-range missiles in Cuba in 1962 |
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first soviet satellite; spawned first federal aid in education and science |
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reduce tensions between U.S. and communist opponents by playing other communist governments against each other; Kissinger tried to pit Communist China against Soviet Russia |
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Gulf of Tonkin Resolution, 1964 |
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Incident with American destroyer causes Congress to pass resolution, essentially granting Johnson a "blank check" in Vietnam |
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troops in Vietnam by 1967 |
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Most of the escalation of Vietnam and growing dissent and public opinion polarization occurred during the presidency of ________________. |
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the U.S.'s plan to provide military assistance to friendly government. Designed to prevent resistance and help America's "friends" |
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trying to ease the U.S. out of the conflict and turn more of the effort over to the Vietnamese |
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