american dilemmas models and economic approaches
TRANSCRIPT
American DilemmasModels and Economic
Approaches
Learning Objectives
• Critically analyze social problems by identifying value perspectives and applying concepts of sociology, political science, and economics;
• Use knowledge and analyses of social problems to evaluate public policy, and to suggest policy alternatives, with special reference to questions of social justice, the common good, and public and individual responsibility.
Paper Proposal
• Due in class on 7/8
• 5% of your final Grade
• Involves submitting 2 Parts– Worksheet– 2 page paper
What are Perspectives/Models
• Methods that each discipline uses to understand social problems
• Simplified representations of some aspect of the real world– Simplify and clarify difficult problems– Help understand what is important and
unimportant
SOCIOLOGICAL MODELSThings Decision Makers do not use
Sociological Theories
• Sociological theories– Functionalism– Conflict Theory– Symbolic Interactionism
Functionalist Perspective
• Society is a system that is made up of a number of interrelated elements, each performing a function that contributes to the operation of the whole.
FamilyFamily
LegalLegal
MediaMedia
Educ.Educ.
Gov.Gov.
Econ.Econ.
Social Institutions
Conflict Perspective
• Society consists of different groups who struggle with one another to attain the scarce societal resources that are considered valuable, be they money, power, prestige, or the authority to impose one’s values on society.
Symbolic Interactionism
• Interactionism focuses on everyday social interaction among individuals rather than on large scale societal structures.
Sociological Explanations of Violence
• Functionalist:– Violence increases when social institutions are
weakened– Solution: Strengthen social institutions (family, schools)
• Conflict:– Violence is a response to inequalities in society– Solution: Reform political and economic institutions to
change inequality.
• Symbolic Interactionist:– Violence is learned behavior– Solution: change societal values which encourage
violenceCopyright © Allyn & Bacon 2010
ECONOMIC PERSPECTIVESFun From the Dismal Science
Rationalism
• Cost- benefit• Cost Effectiveness• Risk assessment
Cost Benefit Analysis• What is it?
• How Do you Conduct it?
• • • How do you put a value on Human life? •
•
• •
Cost-Benefit II
• Advantages
• Criticisms of C-B
Cost Effectiveness
• How it Works
• Fixed-Budget Analysis • Slot Machine strategy • TX Dot stimulus money
Cost Effectiveness II
• Fixed- Effectiveness
• Criticisms
Risk Assessment
• What is it?
• How does it Work?• What are its' criticisms?
– Type I error – Lowering Risk is Expensive
• Spillover Costs • Spillover costs II
Rational/Public ChoiceA Cross-over Model
Rational/Public Choice
• The application of economic analyses to public policymaking
• In economics, people pursue their self-interests in the market.
• In policy you try to maximize your personal benefits
Public Choice Actors
• Can be applied to any unit of analysis (state, person, interest group, etc)
• People will join collective organizations when it benefits them.
Incrementalism
• Select policies based on the existing order.
• Policy is a continuation of past government activities with only incremental modifications
• A policy conservative and expedient way of making change.
• Downsides?
Political Feasibility
• What is it
• How Does it work
Economics
The Dismal Science
Economics
• Fiscal Policy
• Monetary Policy
The Economy as a series of sectors
• Primary
• Secondary
• Tertiary
The Modern U.S. Economy
• A Shift Away from the First Two Sectors• A Service Based Economy
– Affluent service jobs– Welfare service– Service Jobs
The Economy as a series of “Collar” Jobs
• White Collar• Blue Collar• Pink Collar• Green Collar
Collar does not always equate with income
Theories of Economics
• Classical Theory
• Keynes
• Supply-side
Key actors in Economic Policy
• We do not have a single economic policy• The federal government is the key player
here, why?– The Power to Tax– Regulate foreign trade – Coin Money and set its value
States and municipalities are also Big Players
• They can also tax
• They can provide incentives for economic growth
• Provide services for its residents
Economic Growth: Goal #1
• An Increase in the GDP each year
• More Money means more tax revenue
• “Crazy” Growth, however, is not a good thing
Historical GDP Change
Low Unemployment: Goal 2
• What is Unemployment
• Who does this Exclude?
• What it does not measure
The Positive aspects of Low Unemployment
• More Tax Revenue
• Fewer people receiving benefits
• Lower Crime
Unemployment in U.S.
• www.bls.gov
Our Unemployment compared to other Nations
• Historically, it has been much lower
• Even in our poor economy, it is about the same as the EU region
The Role of Unions
• Once 25% of workers, now ½ of that.
• Reasons for the Decline
The Economic and Political Effect of Unions
• Union Workers earn 10% to 15% than non-union workers in similar occupations
• A large player in “special interest” politics
Economic Goal 3: Low Inflation
• The Government wants low levels of inflation, why?
• Measured by the Consumer Price Index (CPI)
• How it has changed over time
Goal 4: A positive Balance of Trade
• A Nation Wants to Export more than it Imports
• The United States is the reverse
Why We have a deficit
• Where it comes from
• What are the reasons
The Advantages and Disadvantages of a Trade Deficit
• Disadvantages
• Advantages
Goal 5: Sound Tax Policy
• A sound tax policy should collect as much at it spends
• A sound policy does not disrupt the functioning of the economy
Where to set the Tax Rate• http://www.youtube.com/watch?v=ZmxpftPFXZg&feature=related
Types of Taxes
• Regressive
• Progressive
• Sin Taxes
Our Tax Burden Is Lower than Most Nations
The National Debt: The problem of our Tax Policy
• We accumulate annual budget Deficits
• We have to Pay interest on this
• We owe roughly 10 Trillion Dollars
The Debt
• Disadvantages
• Advantages
What to about it
• Raise Taxes
• Cut Spending
• Some Combination of both
Raising Taxes
• A Political Albatross
• We like Tax Cuts instead
• We Like sin taxes- but we are running out of these
Raising Taxes on Who?
• Soak The Rich
• Make the Poor Chip in
• Close Loopholes
Change How We Tax
• Add a consumption or VAT Tax
• Add a Flat Tax
• Try A “Fair Tax”
Cut Spending
• There is No Political Gain to do so
• Cut Back on Entitlements
• Reduce Discretionary Spending
Pay the Light Bill