public policy review

7/30/2019 Public Policy Review

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Multistage Policy Cycle Model

A Policy cycle model assumes that policy making is an ongoing and

continuous process with different governmental entities and political interest

involved at different stages.

Problem Definition>Agenda Setting>Policy Adoption>Policy

Implementation>Policy Evaluation

These 5 steps are followed by feedback and then the process starts over. (See

figure 2.3 on Pg 39 in the book)

http://quizlet.com/16588541/public-policy-1-flash-cards/

Policy Eras (The breakdown of policy eras below integrates the vocab terms from

the bottom of the google doc)

The Progressive Era: 1900-1920Period of liberal policy expansion. Created some regulatory

agencies and added the 16 and 17 amendments during this time. Social issues however were

nearly achieved and struck down by the US Supreme Court.

Progressive movementwas not one political movement, but several movements responding to

these different problems. It included remnants of the 19th century populist movement of farmers

against railroads and major corporations. Progressives involved muckrakers, journalists attacking

child labor, deplorable working conditions. The movement consisted of religious organization

concerned about poverty and vice, and women organizations campaigning for womens suffrage

and pension programs for mothers. It also involved the municipal reform movements crusade

against corrupt and undemocratic governments. The progressive movement was most successful

in producing new public policies in economical and political areas and least successful in the

social realm.Economic Issues: Unregulated Markets and MonopoliesThis was a period of unprecedented

economic development and urban growth. Unregulated markets undermined the free and open

market in two ways: allowed diseases or defective products to threaten the life of consumers and

unscrupulous producers took advantage of conscientious producers so they demanded

government regulations. Unregulated markets also tend to produce monopolies and allow trusts

and price fixing to occur.

Trusta trust is a bogus company, generally made up of leaders from other companies who sit

on the trust board. A long time ago, trusts were created manipulate and control markets.

Price Fixinghas to do with a group of firms conspiring to increase prices. Price fixing, trusts,

oligarchs, and monopolies were special problems because they undermined and subverted free

competitive markets.

Economic Policies of the Progressive Eraregulated railroads, inspected meats, monitored

drugs, investigated monopolies and trusts, encouraged fair trade practices. Government

intervened in all of these things with regulations due to pressure from the public.
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Social Issues: Workplace Safety, Child Labor, and Urban Housingsocial policies arose in this

time, people demanded child labor laws, a minimum wage, maximum working hours, and

sanitary working conditions.

The 1920s: Conservative Contractionterminated almost all social policies of the progressive

era, emphasized cutting government spending and relying on the private sector. Prohibition was

introduced. Conservative ideas of the period were Social Darwinism, business conservatives

rejected survival of the fittest and thought programs that benefited business benefitted the entire

country. Constitutional conservatives killed many progressive policies using contract and states

rights. The contract argument believed that the laws violated an individuals right to contract for

as many hours/wage with their employer would allow. The States rights were not to be

interfered with based on the 10 amendment, federal government would be out of line by enacting

any child labor or minimum wage laws.

Social Darwinisma social philosophy that was the dominant form of social conservatism.

Spenser believed that beyond protecting private property, enforcing contracts, and maintaining

national defense government should do nothing. Survival of the fittest would endure. Darwinadvocated Laissez-faire capitalism (considered state intervention in the market dangerous,

hands off)

The 1930s: The Great Depression and the New DealHooverthought depression was

temporary, tried to balance budget, cut taxes, opposed federal relief assuming that was a local

issue, tried to establish a National Credit Association, established the Emergency Committee for

Employment. Nothing got better under his policies. FDR - repealed prohibition, offered the New

Deal and backed the idea of Keynesian economics. Roosevelt created several new policies that

required him to create the presidential cabinet. US Supreme Court still struck down several New

Deal policies but the programs still somewhat stimulated the economy and reducedunemployment. (List of FDR policies on Pg. 62 in book)

Great Depression - followed the stock market crash of October 1929, pushing the nation to the

brink of economic and social collapse. GNP tanked 50%. Businesses fail. Unemployment 25%.

New Dealfederal relief programs, government regulation of utilities, government regulation of

agriculture production and prices, public works programs, forest conservation, flood control, and

the development of waterways.

John Maynard Keynesoffered an alternative to the conservative economic view of the

Depression. Conservative economists saw the depression as a natural process in which inefficient

businesses went out of business and more successful business survived.

Keynesian economicsargues that the Great Depression was symptomatic of overproduction

and under consumption. Firms could not maintain high sales so they responded by cutting back

production and laying off workers. This response increased unemployment, which in turn

decreased the amount of money available for workers to purchase goods. Not necessarily

temporary, it could get worse, markets could collapse, and doing nothing would only make

matters worse. It supported tax cuts to stimulate the economy.


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New Deal Policies - Created FDIC: Federal Deposit Insurance Corporation to stop the run on

withdrawing from banks. Recovery Administration, WPA-Works Progress Admin. PWA-Public

works Admin CCC-Civilian Conservation Corps. Social Security Act of 1935 (FHA) Federal

Housing Act and PHA Public Housing Authority-gives mortgages to middle income, and

projects for the poor. Wagner Act - established NLRB National Labor Relations Board to help

solve labor conflicts. Created the Securities Exchange Commission (SEC)

regulated the

stock market.

The 1950s: Conservative ContractionPeriod of Economic Expansion. Wages, productivity

and profits increasing. Military spending decreased a little, but still higher than before due to

start of Cold War. Eisenhower President (self-proclaimed conservative) 1952-1960. Economy

did well the whole decade. Deficit Declined, taxes cut.

1. Began returning federal level programs to the states.

a. In particular the FHA and Social Security Acts survived.

2. 1954: Supreme Court orders Desegregation of Schools.3. Interstate Highway and National Defense Act of 1956- created highways we use today. (not

conservative)

4. McCarthyism and Moral Panic.

McCarthyismarose from the cold war and a fear of international communism and nuclear war

after the Soviet Union acquired the atomic bomb. Red Scare. Suppression of far-left free speech.

Senator McCarthy led the charge with the Committee of Un-American Activities. He was finally

discredited after accusing high-level military officials with stellar records.

The 1960s and 1970s: Liberal Policy ExpansionThis was the period of great socialmovements (civil rights, womens rights, anti-Vietnam war, environmental protection) the

economy continued to expand, unemployment stayed low, time of prosperity and political

turmoil. Johnsonpassed three major bills (Civil Rights Act of 1964,Voting Rights Act of

1965, Fair Housing Act of 1968), He also declared war on poverty and focused on urban

development. Nixonintroduced block grants, based on social movements he was able to create

the EPA, OSHA, and the Consumer Products Safety Commission. Federal policies and agencies

proliferated under his leadership.

Block grantsa program formed by combining several categorical grants in the same policy

area. Many of the antipoverty programs of the 1960s were categorical grants, which are grants

for narrow purposes or specific objectives established by the federal government.

The late 1970s and 1980s: A Renewed Conservative Contractionlate 1970s brought high

rates of unemployment and inflation. Neoconservatives emerged demanding reduction in

government, cutting taxes, and making government more efficient. Carterincreased funding of

public works, deregulated competitive regulatory programs (most notably the CAB), and he

supported policies to make government more efficient. He also reorganized cabinet departments


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to make them more efficient. Reagancut taxes and increased defense spending, he thought the

cuts would compensate for the increase in spending but he only doubled the deficit. He appointed

people and pressured others into reducing social programs. Increased drinking age to 21.

The 1990s: Bush and Clintona period of experimentation with market mechanisms to deliver

public services. States created private schools and initiated voucher systems for education.

Welfare programs were reduced. Clean Air Act was expanded, The National Labeling and

Education Act provided nutritional information on processed foods, The Civil Rights Act was

expanded to prevent employment discrimination and harassment on the job. The Americans with

Disabilities Act required employers to make accommodations for disabled people.

2001 and Beyond: George W. BushWar on Terror due to 9/11 (cut taxes and increased

military spending like Reagan) which caused an increase in the deficit, Domestic Policies like

faith-based initiatives, pursued conservative morality policies (ban same sex marriage), argued

for strong national education (no child left behind).

Faith-based initiativesefforts to allocate federal money to church organization to provide

social services and community development programs

Policy Theories

State Centered and Decision Theory assumes that the way government is organized and the

choices individual governmental officials make are key factors in explaining change in public

policies.

State Centered Theory focuses on the government itselfthat is, the role of its organization

and key officials in promoting policy change. Its not a ball bounced around by interest groups or

economic arrangements, but by state officials who initiate policy change and bring together the

political interest essential to produce change.Decision Theory - focuses on the manner in which government officials and policy makers

decide on policy options. There are many different approaches to the study of decision-making.

One approach identifies different methods of decision-making depending on the extent of the

proposed change and the level of information decision makers possess. Several major decision-

making methods can be identified through this approach. The most common methods are 1)

rational, 2) incremental, 3) technical, and 4) speculative augmentation.

Rational decision-makingthe rational decision makers require substantial amounts of

information. They must clearly understand the problem they are attempting to solve and the

specific policy options open to them. A popular approach is cost-benefit analysis (which uses a

rough formula that compares the benefits of a policy to its costs. Costs are generally estimated by

adding the amount of money the government and private business must spend to carry out the

policy.)

Incremental decision-makingconsiders the demands and perspectives of competing interest

groups, based on Incrementalismrather than seeking the best solution to a policy problem,

which may be unacceptable, incrementalism strives to satisfy all groups and perspectives,

especially established interests, and it involves bargaining and compromise. The term satisficing


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is used to describe this process, which means a decision-makingstrategy that attempts to meet an

acceptability threshold.

Technical decision-makingbased on using substantial information to make a small but

important policy change.

Speculative Augmentation - to describe the process of making nonincremental decisions that

involved limited information and required substantial change.

Public Choiceanother common approach to decision making, applies assumptions about the

market or economic models to public decision-making. The public choice theory applies

assumptions about the market or economic models to public decision-making. Market models

assume that decision makers in government and individual citizens pursue their own self-interest.

Elitist and Pluralist Theorydominated the debate over policy making for a long time,

focused on different aspects of political power. Pluralists argue that elitists falsely assume that

power is fixed and concentrated among the economic elite. They think elitists confuse corporate

leaders who actually have power with political leaders and policy-making. The bias of pluralism

is a problem with the theories.

Elitist theoryadvocates of elitist theory assumed that power was concentrated in a small group

of economic or corporate elites directly involved in making public policies.

Pluralist theoryproponents of pluralist theory assumed that power was dispersed among

competing organized interest groups and those new policies arose from a process of bargaining,

negotiation, and compromise. Group theorists assume government is responsive to organized

interest that pressure government to respond to their concerns. They see the interest group

process as an alternative to majoritarian democracy. The process is democratic so long as the

officials respond to the interests.Bias of pluralismthese critics have identified two types of biases in the model. The pluralists

favor organized groups. There are many advocacy organizations. Another type of bias is

socioeconomic. In this case bias favors upper-strata interests.

Cyclical ModelsLiberal-Conservative Cycle and the Policy Cycle

Liberal-Conservative CycleThere are four reasons why policies shift back and forth, 1.

Grassroots organizations that are liberal have trouble sustaining themselves over time 2. The

public has a short attention span, loses interest and shifts to new issue 3. Generational change. 4.

The conditions that produced liberal policies in the 1960s no longer existed in the conservative

1980s.

Policy CycleSee above terms

Eclectic Theoriesprovide explanations for long-term trends, most useful explaining long-term

stability. Punctuated equilibrium, social movement theory, and policy regime theory.

Punctuated equilibriumdescribes policy making in the United States. The term refers to long

periods of policy stability interrupted by episodes of abrupt and substantial change. The long

periods of stability are explained by political power balanced among interest groups. Shifts in

public attention and political power explain the episodes of abrupt change.
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Social movement theorythe social movement perspective offers an explanation for both long

periods of policy stability and short bursts of policy change. Proponents of social movement

theory insist that social movements rarely occur, but when they do, they produce substantial

policy changes.

Policy Regime Theoryfocuses on trigger events, initiators, and agenda building. Periods of

stability are produced by officials and organizations working to preserve the status quo as their

jobs depend on it. Power shifts in organizations change paradigms and that causes new outlooks

and abrupt change. Stressors like demographic shifts, mode of production changes, economic

dislocation, and social movements can precipitate policy change.

Policy regime modelthe policy regime model builds on punctuated equilibrium (helping to

explain both stability and change). This model is not original but incorporates many different

theories of policy change. It draws from pluralist, elitist, and state centered theories. It integrates

problem definition, agenda setting, policy adoption, and implementation. It also draws from the

social movement theory. Because the policy regime model is a composite of different public

policy theories, it provides a powerful framework for explaining continuity and change in publicpolicies. It has several dimensions, power arrangements (patterned ways in which individuals

and organizations influence the development and maintenance of policy), organizational

arrangements (pertain to governmental agencies, bodies, and individuals involved in

implementing policy), and the dominant policy paradigm (a conceptual framework that contains

assumptions about the world).

r

Decision Theory

Representation Theories ???

Bounded Rationality -- Goal oriented, but makessystematic mistakes

Decision-makers are limited by biology in a manner that limits their abilities

to maximize. They attend to problems piecemeal, react according to urgency

imposed by emotions, and allow theiridentifications to color their objectivity.

Positive Feedback

Positive feedback is a process in which the effects of a small disturbance on

a system can include an increase in the magnitude of the perturbation


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Requires substantial amounts of information and must complexly understand

the problem that they are trying to solve and the specific policies open to them.

This is called rational decision making.

Most commonly use cost-benefit analysis that compares the benefits of a

policy to its costs

Social Movement Theory

Perspective that offers an explanation for both long periods of policy stability

and short bursts of policy change.

Insist that social movements rarely occur, but then they do they produce

substantial policy changes

Same things as punctuated equilibrium theory?


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Involves the national budget: using federal spending, purchasing and taxing,

as well as special social programs and job projects

Monetary Policy

The management and the circulation of money primarily through the Federal

Reserve System

Price Fixing

An agreement between participants on the same side in a market to buy or

sell a product, service, or commodity only at a fixed price, or maintain the market

conditions such that the price is maintained at a given level by controlling supply

and demand.

Laissez-faire capitalism considered state intervention in the market dangerous.

Deficit

The amount by which a government's expenditures exceed its tax revenues.

The difference is made up for by borrowing from the public through the issuance

of debt.

Debt

The total amount of money that the United States federal government owes to

creditors. The government's creditors include all individuals, businesses,

governments and other organizations that own U.S. government debt securities

Government Financial Obligations

A debt that is backed by the full taxing power of the U.S. government. Direct

obligations include Treasury bills, Treasury bonds, and U.S. savings bonds.

These investments are generally considered to be of the very highest quality.

Mandatory Spending

Mandatory spending are those expenditures that must go into the U.S.

budget. They are mandated by Federal law, and so can't be changed without,

quite literally, an act of Congress. AS a result, the mandatory budget is an

estimate of the cost to implement the benefits promised by these Federal laws.The estimate is made by the Office of Management and Budget, or OMB.

Example: Medicare and Social Security

Inflation

A rise in the general level of prices of goods and services in an economy over

a period of time. When the general price level rises, each unit of currency buys


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fewer goods and services. Consequently, inflation also reflects an erosion in the

purchasing power of money a loss of real value in the internal medium of

exchange and unit of account in the economy. A chief measure of price inflation

is the inflation rate, the annualized percentage change in a general price index

(normally the Consumer Price Index) over time.

Deflation

Decrease in the general price level of goods and services. Deflation occurs

when the inflation rate falls below 0% (a negative inflation rate).

Interest Rates

The rate at which interest is paid by borrowers for the use of money that they

borrow from a lender. For example, a small company borrows capital from a bank

to buy new assets for its business, and in return the lender receives interest at a

predetermined interest rate for deferring the use of funds and instead lending it to

the borrower.

Medicare

Social insurance program since 1965 that guarantees health coverage to

people ages 65 and older in addition to younger people with disabilities

Medicaid

Health insurance program for certain people and people with low incomes

and resources that is managed by the state

Medicare Part D

Also called the Medicare prescription drug benefit, is a federal program to

subsidize the costs of prescription drugs for Medicare beneficiaries in the United

States. It was enacted as part of the Medicare Modernization Act of 2003 (MMA)

and went into effect on January 1, 2006

MediGap

Is various private supplemental health insurance plans sold to Medicare

beneficiaries in the United States that provide coverage for medical expenses not

or only partially covered by Medicare. Medigap's name is derived from the notionthat it exists to cover the difference or "gap" between the expenses reimbursed

by Medicare and the total amount charged. As of 2006, 18% of Medicare

beneficiaries were covered by a Medigap policy.

Patient Protection and Affordable Care Act


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More commonly called Obamacare or the Federal Health Care Law was

passed in 2010

Aimed primarily at decreasing the number of uninsured Americans and

reducing the overall costs of health care. It provides a number of mechanisms

including mandates, subsidies, and tax creditsto employers and individuals in

order to increase the coverage rate. Additional reforms are aimed at improving

healthcare outcomes and streamlining the delivery of health care. PPACA

requires insurance companies to cover all applicants and offer the same rates

regardless of pre-existing conditions or gender. The Congressional Budget Office

projected that PPACA will lower both future deficits and Medicare spending.

The Individual Mandate

Requirement by law that certain persons purchase or otherwise obtain a good

or service.

Given that insurance companies are restricted by law in their ability to alter insurancerates based on pre-existing conditions, they must set their rates to at least cover theircosts. This means that the rates on healthier individuals will be greater than what they

would pay otherwise, while reducing the rates on less healthy individuals (e.g., those with

pre-existing conditions). The healthier individuals (e.g. the young) will be under economic

pressure to opt out of the system, which will cause the insurance companies to raise rates

on those remaining insured in order to cover the lost revenue. This will further increase

the pressure on healther individualAct expanded the Medicare program to

provide protection against catastrophic medical expenses and for the first

time, provided coverage under the Medicare prs to opt out of buying healthinsurance, which will further increase rates, until the market collapses. Mandated

insurance is intended to prevent this downward spiral.

Medicare Catastrophic Coverage Act of 1988

Wanted to provide protection against catastrophic medical expenses under

Medicare. Specifically, the program for prescription drugs. To pay for these

benefit expansions, a new supplemental premium tax on all persons eligible for

Medicare was enacted. After massive protests by seniors, the law was essentially

repealed the next year.

Adverse Selection Also known as Anti-selection, or negative selection is a term used in

insurance, risk management, and statistics. It refers to a market process in which

undesired results occur when buyers and sellers have asymmetric information

(access to different information); the "bad" products or services are more likely

to be selected. For example, a bank that sets one price for all of its checking


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account customers runs the risk of being adversely selected against by its low-

balance, high-activity (and hence least profitable) customers.

Clintons Health Security Act

The Clinton health plan required each US citizen and permanent

resident alien to become enrolled in a qualified health plan and

forbade their disenrollment until covered by another plan. It listed

minimum coverages and maximum annual out-of-pocket expenses

for each plan. It proposed the establishment of corporate "regional

alliances" of health providers to be subject to a fee-for-service

schedule. People below a certain set income level were to pay

nothing.

Chapter 1Allocational policies entail the distribution of urban services: policy, fire, parks,

museums, libraries, streets, sewers, and others. These policies tend to distribute city

services on the basis of professional norms as such as greater police serves to higher

crime areas, or more street repairs services to high use areas.

Communitarians -- are just the opposite of libertarians. They want more government

involvement in all areas. They want greater government regulation of morality issues.

They oppose abortions, drugs, and prostitution, and want government to do something

about these issues. Protect welfare and to protect the public from pollution and

dangerous issues.

Competitive regulatory policies generally regulate entry into markets and may also

regulate prices. Ex: Federal Communication Commission in issues licenses to radio and

television broadcasting states to operate on the airwaves and in enforcing rules for

operating.

Conservatives generally want more government to resolve morality issues and less

government to resolve equity issues. They also support more governmental power to

regulate obscenity and reduce drug abuse. They also support capital punishment and

the expansion of governmental powers and prerogatives to maintain law and order and

to regulate immoral behavior.

Developmental policies involve economic revitalization.

Distributive policies they appear to allocate benefits or resources to the larger

population. Ex: the interstate highway system


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Eminent domain means governments have the power to seize land and offer just

compensation or a fair price.

Externality it is a cost or benefit that arises apart from the market. That is, it is not

reflected in the cost of goods and services sold. Pollution is a cost forced on peopleagainst their will. Governments can take tracts of land along a straight line to build a

road, as long as they pay the landowner a fair price.

Free rider those who benefit from the good without pay for it.

Thomas Hobbes Political philosopher, imagined a state of nature and time before

government. Before government, in the state of nature, the lives of people were

solitary, poor, nasty, brutish, and short. Hobbes argued that people gave up their

freedom in nature for the security they gain from government. People created

government to maintain law and order.

Liberals favor less government to resolve morality issues and more government to

resolve equity issues. They support the privacy of the individual to make his/her own

personal choices on morality issues. Suspicious of increasing policy powers, especially

where they see the potential loss of civil liberties of all citizens, including those accused

of crime. Opposed to government regulation of what videos or movies citizens may see,

etc. liberals support individual choices over government intervention.

Libertarians they advocate less government involvement and more individual choicein both morality and equity issues. Like liberals, libertarians oppose government

regulation of movies, video, and CDs. Oppose criminalization of abortion, drug abuse,

and prostitution. Like conservatives, libertarians oppose government welfare programs

and government regulation of pollution or consumer product safety. In short, libertarians

want more individual freedom and less government in all areas.

Market failure Governments responds to other forms of economic crisis, especially

runaway inflation, through other means. It regulates money and it negotiates with oil-

producing nations to increase the supply of oil in order to slow the rising price of energy.

Morality policies involve moral issues and notions of right and wrong. They tend to

be grounded in religion and entail conflicts over values and principles.

Policy activities most public policy activities involved the allocation of resources, the

provision of services, the regulation of behavior, or the distribution of values.


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Policy statements public policy statements express the intentions, goals, and values

of government.

Procedural policy it outlines the steps in a process: courtroom procedures,

procedures for the government to take peoples land and homes (eminent domain) to

build expressways. It involves the protection of individuals rights, like the right to a fair

hearing.

Protective regulatory policies protect the public from a perceived harm. Ex:

Environmental Protection Agency, etc, all of which protect the public from pollution,

hazardous products, work place dangers, and unsafe airplanes.

Public good a public good is one from which everyone in a community can benefit

without necessarily paying for it.

Public policiesThomas Dye referred to public policies as whatever governments

choose to do or not to do. Public policies consist of courses or patterns for goal -

oriented actions developed and executed by governmental officials.

Substantive policy a substantive policy entails the allocation of resources and is

expected to have a significant impact. Ex: clean Air Act of 1990

Symbolic policy has emotional appeal. It embodies values and ideals.

Chapter 2

Agenda setting once a situation is defined as a problem requiring governmental

action, the policy-making process moves to the agenda-setting phase. The theory of

agenda setting examines the process in which issues or problems are raised.

Bias of pluralism these critics have identified two types of biases in the model. The

pluralists favor organized groups. There are many advocacy organizations. Another

type of bias is socioeconomic. In this case bias favors upper-strata interests.

Cost-benefit analysis uses a rough formula that compares the beneficial approach is

cost-benefit analysis, which uses a rough formula that compares the benefits of a policy

to its costs. Costs are generally estimated by adding the amount of money the

government and private business must spend to carry out the policy.


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Decision theory focuses on the manner in which government officials and policy

makers decide on policy options. There are many different approaches to the study of

decision-making. One approach identifies different methods of decision-making

depending on the extent of the proposed change and the level of information decision

makers possess. Several major decision-making methods can be identified through this

approach. The most common methods are 1) rational, 2) incremental, 3) technical, and

4) speculative augmentation.

Elitist theory advocates of elitist theory assumed that power was concentrated in a

small group of economic or corporate elites directly involved in making public policies.

Government agenda government agenda issues are discussed inside government:

Congress, the presidents office, bureaucratic agencies, or the courts.

Group theory is based on three assumptions about society and government. First,

people are social beings and exist in a social or organizational context (church, labor

union, social club, family, etc). Second, political interests are expressed in the context of

political. As issues impact individuals, they either mobilize the organizations they are a

part of or form new organizations. Finally, group theories assume that government is

responsive to organized political interests that pressure government to respond to their

concerns.

Incrementalism rather than seeking the best solution to a policy problem, which may

be unacceptable, incrementalism strives to satisfy all groups and perspectives,

especially established interests, and it involves bargaining and compromise.

Pluralist theory proponents of pluralist theory assumed that power was dispersed

among competing organized interest groups and those new policies arose from a

process of bargaining, negotiation, and compromise.

Policy adoption it has to do with the governmental institution creating the policy. Any

institution of government can develop and adopt a public policy: Congress, the

presidency, the courts, and the bureaucracy make policies all the time.

Policy cycle model assumes that policy making is an ongoing and continuousprocess with different governmental entities and political interest involved at different

stages. The simplest version is the three-stage model that entails policy making, policy

implementation, and policy impact. Policy is adopted in the policy-making stage. Policy

is carried out in the implementation stage.


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Policy implementation it involves the process of carrying out the policy. It identifies

four major factors that explain successful or unsuccessful implementation: 1) statutory,

2) degree of change, 3) environmental, and 4) institutions of government.

Policy monopolyits a closed system of policy making open only to the actors

within the close net of decision makers in the system. It consists of bureaucratic,

congressional, and interest group leaders who have the same set of beliefs, ideas, and

images about a policy.

Policy regime model the policy regime model builds on punctuated equilibrium

(helping to explain both stability and change). This model is not original but incorporates

many different theories of policy change. It draws from pluralist, elitist, and state

centered theories. It integrates problem definition, agenda setting, policy adoption, and

implementation. It also draws from the social movement theory. Because the policy

regime model is a composite of different public policy theories, it provides a powerful

framework for explaining continuity and change in public policies. It has several

dimensions, power arrangements, organizational arrangements, and the dominant

policy paradigm.

Problem definition during the first stage, problem definition, political leaders define a

problem as one requiring a public policy response. Leaders identify its cause,

consequences, and solution, and their definition shapes the policy solution.

Public choiceThe public choice theory applies assumptions about the market or

economic models to public decision-making. Market models assume that decisionmakers in government an individual citizens pursue their own self-interest.

Punctuated equilibrium describes policy making in the United States. The term

refers to long periods of policy stability interrupted by episodes of abrupt and substantial

change. The long periods of stability are explained by political power balanced among

interest groups. Shifts in public attention and political power explain the episodes of

abrupt change.

Rational decision-making the rational decision makers require substantial amountsof information. They must clearly understand the problem they are attempting to solve

and the specific policy options open to them.

Satisficing students of public policy use the term satisficing to describe this process.

Finally, policies tend to be incremental because established and powerful interest


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groups have a stake in maintaining the status quo, especially if existing arrangements

favor them.

Social movement theory the social movement perspective offers an explanation for

both long periods of policy stability and short bursts of policy change. Proponents of

social movement theory insist that social movements rarely occur, but when they do,

they produce substantial policy changes.

Speculative augmentation to describe the process of making nonincremental

decisions that involved limited information and required substantial change.

State centered theory focuses on the government itself that is, the role of its

organization and key officials in promoting policy change. Its not like a ball bounced

around by interest groups or economic arrangements, but by state officials who initiate

policy change and bring together the political interest essential to produce change.

Chapter 3

Block grants a program formed by combining several categorical grants in the same

policy area. Many of the antipoverty programs of the 1960s were categorical grants,

which are grants for narrow purposes or specific objectives established by the federal

government.

Cyclical change theory another model of change taken from nature is the cyclical

change theory. Cyclical changes are common in nature. Ex: changing of season. It is

suggested that public policies also change in cycles, alternating between periods ofliberalism and conservatism. Liberal periods are characterized by the expansion of

welfare and protective and competitive regulatory policies. Conservative periods

produce constrictions and moral panics (policies designed to regulate moral turpitude or

sin).

Faith-based initiatives efforts to allocate federal money to church organization to

provide social services and community development programs.

Federal Housing Administration addressed the housing needs of both low- and

middle-income families. The FHA guaranteed mortgages for middle-incomehomebuyers.

Great Depression followed the stock market crash of October 1929, pushing the

nation to the brink of economic and social collapse.


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John Maynard Keynes offered an alternative to the conservative economic view of

the Depression. Conservative economists saw the depression as a natural process in

which inefficient businesses went out of business and more successful business

survived.

Keynesian economics argues that the Great Depression was symptomatic of

overproduction and underconsumption. Firms could not maintain high sales so they

responded by cutting back production and laying off workers. This response increased

unemployment, which in turn decreased the amount of money available for workers to

purchase goods. Not necessarily temporary, it could get worse, markets could collapse,

and doing nothing would only make matters worse. It supported tax cuts to stimulate the

economy.

Laissez-faire capitalism considered state intervention in the market

dangerous.hands off

McCarthyism arose from the cold war and a fear of international communism and

nuclear war after the society union acquired the atomic bomb. Red Scare.

Monopoly arises when a single firm controls a market.

New Deal federal relief programs, government regulation of utilities, government

regulation of agriculture production and prices, public works programs, forest

conservation, flood control, and the development of waterways.

Oligopoly exists if only a few firms control a market.

Price Fixing has to do with a group of firms conspiring to increase prices. Price fixing,

trusts, oligs, and monopolies were special problems because they undermined and

subverted free competitive markets.

Progressive Era (1900-1920) a period of liberal policy expansion. Public policies in

that period emerged in reaction to three sets of problems: economic, social, and

political.

Progressive movement was not one political movement, but several movements

responding to these different problems. It included remnants of the 19th century populist

movement of farmers against railroads and major corporations. Progressives involved

muckrakers, journalists attacking child labor, deplorable working conditions. The

movement consisted of religious organization concerned about poverty and vice, and

women organizations campaigning for womens suffrage and pension programs for


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mothers. It also involved the municipal reform movements crusade against corrupt and

undemocratic governments. The progressive movement was most successful in

producing new public policies in economical and political areas and least successful in

the social realm.

Public Housing Authority -- addressed the housing needs of both low- and middle-

income families. The PHA built housing projects for poor families.

Punctuated equilibrium the expression punctuated equilibrium also characterizes

the process in which public policies evolve. Public policies are stable for a long period of

time and interrupted occasionally by periods of abrupt change. However, during times of

crises, public policies change abruptly and substantially.

Social Darwinism a social philosophy that was the dominant form of social

conservatism. Spenser believed that beyond protecting private property, enforcing

contracts, and maintaining national defense government should do nothing. Survival of

the fittest would endure.

Trust a trust is a bogus company, generally made up of leaders from other companies

who sit on the trust board. A long time ago, trusts were created manipulate and control

markets.

1930s: The great Depression and the New Deal

Profound Policy Expansion in reaction to crisis. And repealed 18th amendment,

prohibition.

Great Depression-followed the stock market crash of October 1929, pushing the nationto the brink of economic and social collapse. GNP tanked 50%. Businesses fail.

Unemployment 25%.

Hoover- tried to balance budget and cut taxes. Rejected federal relief. Didnt really work

FDR and Keynes

New Deal- federal relief programs, government regulation of utilities, government

regulation of agricultural production and prices, public works programs, forest

conservation, flood control, and the development of waterways.

John Maynard Keynes offered an alternative to the conservative economic view of

the Depression. Conservative economists saw the depression as a natural process inwhich inefficient businesses went out of business and more successful business

survived.

Keynesian economics argues that the Great Depression was symptomatic of

overproduction and underconsumption. Not necessarily temporary, not cyclical, and


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doing nothing would be bad. Stimulating Jobs was key. Give people jobs, even if stupid

jobs, theyll buy stuff and economy ^

New Deal Policies

Created FDIC: Federal Deposit Insurance Corporation to stop the run on

withdrawing from banks.

Recovery Administration, WPA-Works Progress Admin. PWA-Public works Admin CCC-

Civilian Conservation Corps.

Social Security Act of 1935

(FHA) Federal Housing Act and PHA Public Housing Authority-gives mortgages to

middle income, and projects for the poor.

Wagner Act- established NLRB National Labor Relations Board to help solve labor

conflicts.

Created the Securities Exchange Commission (SEC).

With so much new stuff to run, Roosevelt created the office of the president to helpmanage the enlarged Govt. Although the NEW DEAL helped, only the high level of

Govt spending in WWII took the nation out of depression. Unemployment dropped

below 2% in WWII.

1950s: Conservative Contraction

Main Theme: Period of Economic Expansion. Wages, productivity and profits

increasing.

Military spending decreased a little, but still higher than before due to start of

Cold War.

Eisenhower President (self-proclaimed conservative) 1952-1960.Economy did well the whole decade. Deficit Declined, taxes cut.

1. Began returning federal level programs to the states.

a. In particular the FHA and Social Security Acts survived.

2. 1954: Supreme Court orders Desegregation of Schools.

3. Interstate Highway and National Defense Act of 1956- created highways we use today. (not

conservative)

4.. McCarthyism and Moral Panic.

McCarthyism arose from the cold war and a fear of international communism and

nuclear war after the soviet union acquired the atomic bomb. Red Scare. Suppression

of far-left free speech.

-Senator McCarthy lead the charge with the Committee of Un-American

Activities.

-He was finally discredited after accusing high level military officials with stellar records.

Chapter 10

Amtrak


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Antitrust Division of the Justice Department

Artificial Monopolies

Capture

Civil Aeronautics Board (CAB)

Consolidation

Disorganized Markets

Fairness doctrine

Federal Communications Commission (FCC)

Federal Railroad Administration (FRA)

Granger Movement

Interstate Commerce Commission (ICC)

National Highway Transportation Safety Administration

National Railroad Passenger Corporation

Natural Monopolies

Obscenity RulesPopulist Movement

Surface Transportation Board (STB)

Unstable Markets

Chapter 14

Adam Smith

Arthur Pigou

Budget Deficit

Business CycleCapital-Intensive Industries

David Hume

David Ricardo

Demand Side

Downturn

Federal Reserve Board

Fiscal Policy

George Gilder

Inflation Rate

J.B. Say

John Maynard Keynes

John Stuart Mill

Law of Supply and Demand

Milton Friedman

Monetary Policy

Multiplier Effect


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Says Law

Stagflation

Supply Side

Thomas Malthus

Unemployment rate

Upswing

Chapter 6

American Medical Association

Health Maintenance Organization (HMOs)

Medicaid

Medicare Part A

Medicare Part B

Medicare Part C

Medicare Part DMedigap

Preferred Provider Organizations (PPOs)

Chapter 9 Is it even necessary to know anything from this chapter for the exam?

American Federation of Labor (AFL)

Arbitration

Association of Federal, State, County, and Municipal Employees (AFSCME)

AssociationsBenevolent Societies

Binding Arbitration

Blacklist

Boycott

Closed Shop

Collective Bargaining

Congress of Industrial Organizations (CIO)

Ergonomics

Federal Labor Relations Authority (FLRA)

GuildsHaymarket Riot

Industrial Workers of the World (IWW)

Knights of Labor

Ludlow Massacre

Mediation

National Institute of Occupational Safety and Health (NIOSH)


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National Labor Relations Board (NLRB)

Professional Air Traffic Controllers Organizations (PATCO)

Public Employee Relations Boards (PERBs)

Right-to-work state

State Employee Relations Boards (SERBs)

Unfair Labor Practice

Union Shop

Yellow Dog Contract

Chapter 5

Aid for Families with Dependent Children (AFDC)

Cash assistance

Childrens Bureau

Community Action Agencies

Culture of Poverty

Food stamps

In-kind benefits programs

Job-training programs

New Deal

Poorhouse

Public Assistance

Public Employment Programs

Racialism

Section 8Social Darwinism

Social Insurance

Supplemental Security Income (SSI)

Temporary Assistance for Needy Families (TANF)

Unemployment Compensation

Women, Infants, and Children (WIC)

the sample test is pretty specific, this doc is very general

sample test has questions on it that we havent talked

about in class.


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The real test will have a detailed pic? probably a graph of

the cycle, fill it in type

8=======>

public policy review

Documents