Domestic policy


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Discussion of Chapter 14 from POSC 101 at Lake Michigan College.

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Domestic policy

  1. 1. Domestic PolicyPOSC 101 – Professor Wallace
  2. 2. Policymaking • Five Basic Steps – Agenda Building – Policy Forming – Policy Adoption – Policy Implementation – Policy EvaluationThe Public Policy Institute
  3. 3. Policymaking• Domestic Policy - All government laws, planning, and actions, that concern internal issues of national importance, such as poverty, the economy, crime, and the environment.• Agenda building may occur as the result of a crisis, technological change, or mass media campaign, as well as through the efforts of strong political personalities and effective lobbying groups.
  4. 4. Policymaking • Congress must be aware of a problem that requires action. • 2008 Financial Crisis • The Bush administration feared that bailing out major financial institution was establishing a dangerous moral hazard (the danger that protecting an individual or institution from the consequences of failure willAP Photo/Charles Dharapak encourage excessively risky Bush Treasury Secretary Hank Paulson behavior.
  5. 5. Policymaking
  6. 6. Policymaking• Policy Formulation – Various policy proposals are discussed among government officials and the public. – This may take place in the halls of Congress, in board rooms, over meals, in the printed media, on television, radio and the internet.
  7. 7. Policymaking • Bush-appointed Secretary of Treasury Henry Paulson proposed via three-page memo a $700 billion bill to buy toxic mortgage-related assets. Congress created a 110-page bill filled with pork and oversight provisions. The bill was put to the vote nine days later but both sides supported its failure in the house.CNN Bailout Tracker
  8. 8. Policymaking • After the House refused to pass the bank bailout bill, Senate leaders decided to amend an existing bill already passed by the House • The Troubled Assets Relief Program (TARP) was 451 pages filled with earmarks to attract votes.
  9. 9. Policymaking• Officials soon realized that TARP could be spent on preferred stock in banks, rather than buy toxic banks, which would not resolve the financial crisis, eventually returning TARP funds to the government. The preferred $700 Billion Down The Drain stock would pay interest and banks could buy back the preferred stock.
  10. 10. Policymaking • Initially, the public didn’t mind the switch to preferred stock, rather they were concerned with employee compensation and future lending practices. • Soon the TARP program was viewed as a Wall Street bailout for special interests. • Some banks paid it back. TARP Will Cost Less Than Once Thought
  11. 11. Policymaking• Policy Implementation involves the implementation of the policy alternative chosen by Congress.• Policy Evaluation - After a policy has been implemented, it is evaluated. – Groups inside and outside government conduct studies to determine what actually happens after a policy has been in place for a given period of time
  12. 12. Health Care • The U.S. spends more money on health care than any other nation on either a per person or as a percentage of Gross Domestic Product (GDP).
  13. 13. Health Care
  14. 14. Health Care
  15. 15. Health Care• Universal Health Insurance – President Obama signed into law on March 23, 2010, the Patient Protection and Affordable Care Act (commonly referred to as Obamacare). The Health Care and Education Reconciliation Act of 2010, was a series of adjustments to the Senate package prepared by the House and agreed to by the Senate.
  16. 16. Health Care • Largest expansion of government services since Lyndon B. Johnson • An opt-out provision if an individual rejects the coverage • Illegal immigrants will not be covered.
  17. 17. Health Care• Building an Agenda – Over 45 million Americans are uninsured. Preexisting conditions prevent individuals from qualifying for coverage. USA Today Many uninsured are young, entry-level workers without health benefits – New technology and lifesaving measures are a costly burden on the system. – The Medicare trust fund was projected to run out of funds in 2017. USA Today
  18. 18. Health Care • Policy Adoption – Universal Health Insurance - The central government does not necessarily provide the insurance itself, but may subsidize the purchase of insurance for private insurance companies. – Personal Mandate - Requirement that all citizens obtain health- care insurance coverage from some source, public or private. – Public Opinion - A government- run program that would compete with private-sector health- insurance companies.
  19. 19. Health Care• Policy Implementation• Most of the provisions do not go into effect until 2014 and the last provision is not scheduled until 2018.• Voters will not receive benefits for at least two election cycles.• Currently before the Access-Basic-Necessities-Recession-Level.aspx Supreme Court.
  20. 20. Immigration • Unauthorized Immigration • Approx. 12 million undocumented aliens • Hispanic populations have grown dramatically in the southwestern states. – Studies show unauthorized immigrants return home to retire. Many send money home to relatives . Most live in mixed households with lawful family members. – Concerns: Laws, coyotes, & drugs.
  21. 21. Immigration• Reform Attempts & Public Opinion – 1/5 favor immediate deportation. – Though a serious problem, most don’t believe it should be a priority issue.• Immigration and the Obama Administration – Administration instituted Immigration-Holding-Steady.aspx harsh crackdowns on employers of undocumented workers. – Immigration reform was tabled for Health Care.
  22. 22. Immigration • The Arizona Immigration Controversy – In April 2010, Arizona’s governor signed legislation that would make it a crime to not carry immigration documentation. – Russell Pearce, The author of that law was recalled this year in a special election.
  23. 23. Crime• Industrialization and bureaucratic institutions like factories and schools socialized citizens into patterns of conformity and rules.• In the 20s and 30s, organized crime flourished during prohibition.• Crime rates began to rise in the 50s and grew substantially in the 1960s.• Since 1995, violent crime
  24. 24. Crime • Many Americans believe the best solution to curbing crime is to impose stiff prison sentences. • In 2008, 2.3 million people were imprisoned in jails. • Men are ten times more likely to be incarcerated than women. • Prisoners are also disproportionately African America.
  25. 25. Crime
  26. 26. Crime
  27. 27. Crime
  28. 28. Crime
  29. 29. Crime
  30. 30. Energy• America’s reliance on foreign oil• Potential global warning caused by increased emissions of CO2• The BP Deepwater Horizon Oil Spill• Alternative energy development of solar, wind (job creation)
  31. 31. Economics • Recession - Two or more successive quarters in which the economy shrinks instead of grows. • Unemployment – inability to find a job; the number of those in the labor force actively looking for a job, but unable to find one. • Inflation—a sustained rise in the general price level of goods and services.
  32. 32. Economics• Keynesian Economics - Supply & demand of consumer spending drives GDP. Government spending and taxation to help stabilize the economy in recession is needed. – It is essential that the spending be financed by borrowing, and not by taxes. – Government should run a budget deficit.• Beginning with President Kennedy, policymakers have attempted to use Keynesian methods to fine-tune the economy.
  33. 33. Economics • Monetary Policy (Federal Reserve & Treasury Dept.) • Loose Monetary Policy - Makes credit inexpensive and abundant, possibly leading to inflation (higher prices for goods and services). • Tight Monetary Policy - Makes credit expensive in an effort to slow the economy.
  34. 34. Economics
  35. 35. Economics
  36. 36. Economics
  37. 37. Economics and-now/
  38. 38. Economics
  39. 39. Economics
  40. 40. Economics in-2010-than-during-entire-bush-years/
  41. 41. Economics in-2010-than-during-entire-bush-years/