Domestic Policy

1. Domestic Policy Designing Policy for Domestic Problems

2. The Policy Making Process • Agenda Setting- recognizing an issue as a problem that must be addressed. Problems are brought to the political agenda by citizens, interest groups, the media or government groups. • Policy Formulation-various policy proposals and alternatives are discussed in Congress and by public • Policy Adoption- adopting a plan of action to solve a problem. Congress may pick a specific proposal and bill is passed

3. 4. Policy Implementation - The bureaucracy, courts, executive branch carries out the policy 5. Policy evaluation - after policy is adopted people in government and outside conduct studies to judge effectiveness of program.

4. Health Care • Rapidly rising health care costs • Health care accounts for 15% of the total US economy • We spend twice as much as percentage of GDP as other industrial countries • Government health care programs include: Medicare - designed to support elderly regardless of income and Medicaid- designed to subsidize health care for the poor • Second largest spending program, after Social Security

5. Health Care continued • 47 million Americans, about 15% of population, do not have health insurance • 17.3% of US spending went to Health care in 2009 • National Health Insurance- national government take over function of providing health care insurance - called single payer plan • Universal Health Care Plan with both employer and government insurance plans • Health Savings Accounts- tax free savings account to pay for private health care

6. Entitlement Programs • These are programs that the government has promised to pay for such as Social Security and Medicare.They are supported with payroll taxes. • Entitlements are a rising part of the national budget, especially due to the increasing age of the population and the rising costs of health care • Since two-thirds of the budget is mandatory, significant reductions in government spending and deficits cannot be made without overhauling these popular programs.

7. Discretionary Spending • These are programs that the Congress can change funding for. • They include programs like defense, education, the environment, and transportation • This makes up one-third of the entire US budget

8. Entitlement Solutions • What could Congress do to address the increasing costs of social security? • Raise the retirement age • Increase the payroll taxes for upper income groups • Reduce Benefits • Let people set up private retirement accounts that are tax free.