public policy review
TRANSCRIPT
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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.
http://en.wikipedia.org/wiki/Decision-makinghttp://en.wikipedia.org/wiki/Decision-makinghttp://en.wikipedia.org/wiki/Decision-makinghttp://en.wikipedia.org/wiki/Decision-makinghttp://en.wikipedia.org/wiki/Decision-making -
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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=======>