1. Public policy refers to the activities and decisions of government that influence citizens' lives. It involves policy choices by officials, implementation of programs, and impacts on citizens. 2. There are three levels of public policy - choices by officials, programs that put choices into action, and effects on citizens. Government uses various tools or instruments of public policy, including laws, services, money, taxes, and persuasion. 3. The choice of policy instruments is influenced by their probable effectiveness, political acceptability, experiences of policymakers, and traditions. The instruments can confer rights, distribute resources, and allocate burdens in society.

1. 1. What is Public Policy

2. 2
Government
Government in the United States accounts for one dollar in three of
total national production
In the United States, one person in six is employed by the
government, mostly at the local level
More than 89,500 separate governments now exist in the United
States
Subject matter of government policy is increasingly complex and
technical
Requirements of participation and accountability also increase
complexity of policy

3. 3
What Is Public Policy?
Public policy is the sum of government activities, whether pursued
directly or through agents, as those activities that have an influence
on the lives of citizens
Harold Lasswell – “Who gets what?”

4. 4
Three Levels of Public Policy
Policy choices are decisions by politicians, civil servants, or others
granted authority that are directed toward using public power to
affect the lives of citizens
Policy outputs are choices put into action (synonymous with the
term "programs" commonly used in government circles)
Policy impacts are the effects that policy choices and policy outputs
have on citizens

5. 5
Choosing an instrument requires consideration of…
 the probable effectiveness of the instrument
 the political palatability of the instrument
 experiences of the policy designers
 national or organizational traditions
Most choices of an instrument are made out of habit and familiarity,
not out of certain knowledge of the effectiveness of the instrument
The Instruments of Public Policy

6. 6
Law as an Instrument
Law is a unique resource of government
Governments have the right to make authoritative decrees and to
back up those decrees with legitimate state power
Law is used to produce rights…the most fundamental benefit
conferred by governments
 Civil Rights Act of 1965
 Equal Employment Opportunity Act of 1972
 Americans with Disabilities Act of 1990
Law is used to regulate economic and social conditions
Law can be used to create both benefits and burdens

7. 7
Services as an Instrument
Governments provide services, ranging from defense to education to
recreation, directly to citizens
Services tend to be directed to parts of the population that are less
capable of making decisions, such as children
Government tends to provide services directly to citizens when
services must be provided in a certain way or where the authority of
the state is involved; Government services raise the question…
Is direct provision the most efficient means of ensuring service
delivery, or should the service be contracted out or privatized?

8. Money as an Instrument
Governments provide money to citizens, organizations, and other
governments
Approximately 65 percent of all federal taxes is returned to the public
as transfers (e.g., Social Security, unemployment benefits), and 10
percent of tax receipts is transferred to other levels of government
However, money transfers may be an inefficient way to reach policy
goals . . . will money be spent according to policy goals?

9. Money as an Instrument: Grant Types
Categorical grants…
 permit resources to be channeled more directly to problems
 centralize public policy decision making in Washington, D.C.
 tend to encourage state and local spending through matching
provisions
Block grants…
 greater latitude for state and local governments to determine
their own priorities
 concentrate power in state governments rather that allowing
local governments to negotiate with Washington, D.C.

10. Taxes as an Instrument
The way that the government chooses to tax can be important in
changing the distribution of burdens and benefits in society
Tax policy is less expensive to administer given that citizens make
the decisions and then file their own tax returns
Direct taxation creates "markets" via taxation
Tax expenditures (a.k.a. "loopholes") can be used as indirect policy
instruments; as an economic instrument reflects the theory that
granting tax relief is the same as subsidizing an activity
Tax incentives reflect the theory that private interest can be used for
public purposes

11. Other Economic Instruments
Other economic instruments include…
 supplying credit for certain activities (e.g., purchase of farmland)
 guaranteeing loans to make credit available (e.g., student loans)
 insuring certain activities and property (e.g., federal flood
insurance)
These are important activities but do not appear on listings of
government expenditures; the true size of government is
understated as a result

12. Suasion (Persuasion)
When other instruments fail, the government may appeal to a moral
standard, speak in the public interest, or appeal to citizens' sense of
patriotism and/or altruism
Use of information and argumentation to produce changes in
behavior
Suasion is effective so long as citizens view the government as a
legitimate expression of their interests
“Nudge” – if government can make compliance fun or appealing as
the “right thing to do” then desired policy outcomes can be achieved
at minimal costs

13. The Effects of Tools (Policy Instruments)
The tools used by government to influence the economy and society
can result in…
 the conferral of rights
 distribution of goods and services
 distribution of burdens

14. The Environment of Public Policy
Policy is not constructed in a vacuum
Policy is the result of the interaction of political and socioeconomic
factors with the desires and decisions of those who make policy
Neither individual decision makers nor the nature of "the system" is
capable of explaining policy outcomes
Policy emerges from the interaction of a large number of forces, many
of which are beyond the control of decision-makers

15. Conservatism
American politics is relatively conservative in policy terms …
continuing American belief in limited government
The United States has a mixed economy but is generally considered
a welfare state laggard
Counterarguments to the United States as a welfare state laggard…
 U.S. regulations reach beyond European counterparts (e.g.,
consumer product safety)
 services of state and local governments are not fully considered
 spending patterns in the U.S. since 1948 have shifted away
from defense and toward social services spending

16. Conservatism
Free and Cantril: Americans are ideological conservatives and
operational liberals.
Citizens routinely express skepticism about government, but yet
will vote to raise revenues for specific programs
The federal deficit is to some extent a function of these
mismatched concepts

17. Participation
Citizens’ desire to participate is consistent with American democratic
traditions
But broad and effective participation is difficult to achieve due to the
complexity of issues and our decentralized political system
Methods by which the government fosters participation…
 1964 legislation fostered "maximum feasible participation" in
community renewal projects
 regulatory processes require notification and participation
 ideological and cultural desire for local control to avoid the
widespread fear of the "federal bulldozer"
Constant challenge: balancing demands for direct democracy with
practical governance

18. Pragmatism
Pragmatism is the belief that one should do what works, rather than
follow a basic ideological or philosophical system
Historically, American political parties tend to be centrist and non-
ideological
 Slow and incremental policy change – what will work is “that which is already
working”
Declining pragmatism? Modern political parties are more ideological
and less willing to compromise, increasing gridlock and the ability to
solve problems

19. Wealth
The United States is the single largest economy in the world
Wealth enables the government to fund a wide variety of policy
initiatives despite the size of the U.S. budget deficit
The wealth in the United States is threatened by…
 dependence on other regions of the world
 increasing globalization
 the relatively slow rate of capital investment and savings
 changes in internal distribution of wealth

20. Diversity
Diversity provides a great deal of strength and, often, real policy
problems
Dimensions of diversity…
 uneven distributions of wealth
 diverse racial and linguistic backgrounds
 diverse social and economic characteristics
 diverse educational levels

21. World Leadership
The United States is an economic, political, and military world leader
The world expects U.S. military leadership, as well as leadership in
international bargaining and negotiation
This leadership role places burdens on U.S. policymakers…
 United States plays the role of peacekeeper
 the U.S. dollar is a major reserve currency
 globalization causes leaders in the United States to rethink the
desirability of major international involvement