Unit 4: The Politics of Public Policy

1. Unit 4: The Politics of Public Policy Chapter 17: Policy-Making Process

2. Some Definitions • Public Opinion – how the public feels about certain things • Public Policy – the principle guide to administrative actions • Public Agenda – issues that are: • perceivedby the political community • as meriting public attentionand • governmental action. Setting the Public Agenda

3. We ASSUME things are always there • Taxes • Welfare • Civil rights Setting the Public Agenda

4. Determining Policy Agenda • No one person actually decides the agenda • Forces affecting shared community/national beliefs • Political values • Custom and tradition • Major/historical events • Focus of political elites’ talk/press Policy Agenda Setting the Public Agenda

5. Scope gets larger and larger • What IS being done, should continue • Changes make people want to INCREASE government policy (action) • Economic crises • Security issues and war Legitimate Scope of Action

6. Effects of Groups • Organized groups (interest groups) • Labor • Business • Social • Unorganized groups • Sometimes violent activities • Frustration and anger over “relative deprivation” • Being worse off than you think you SHOULD be Legitimate Scope of Action

7. Effects of Government Institutions • Courts • Force the other branches to effect policy change with rulings • Set off a chain reaction • Preferred course for unpopular causes • The Bureaucracy • Experts and advocates become source of proposals • Seeking to expand department • Push a personal agenda • Not necessarily from the rank and file Legitimate Scope of Action

8. Effects of Government Institutions • Senate • Change in role envisioned by Founding Fathers • Became a generator of new policies • Not a regulator to moderate change • Liberal agenda in the 60s • Conservative agenda in the 80s Legitimate Scope of Action

9. Effects of Other Institutions • Media • Methods of steering policy • Place items in national spotlight • Publicize items that are already there • Cause and Effect or Effect and Cause???? • States’ actions • National policy can adopt successful state policies • State lawsuits can affect businesses nation-wide Legitimate Scope of Action

10. Making Decisions • Cost/Benefit analysis • Cost = who bears the burden to support the policy • Benefit = who receives the positive outcomes of the policy Making Decisions

11. Making Decisions • Considerations • Cost perception = who the people THINK bear the costs • Legitimacy = whether the beneficiaries SHOULD receive the positive outcomes • Balance two factors • Who will/should benefit • Who will/should pay Making Decisions

12. Majoritarian Politics • Cost / Benefit • Benefits spread to large number of people • Costs spread to large number of people • Role of interest groups • Minimal • Why join a group if you’ll benefit anyway? • Controversial • Over matters of • Cost • Ideology • NOT between rival interest groups Making Decisions

13. Interest Group Politics • Cost / Benefit • Benefits to a small number of people • Costs spread to a small number of people (the rivals of the beneficiaries) • Role of interest groups • HUGE (duh) • Rival sides will be effected a lot Making Decisions

14. Client Politics • Cost / Benefit • Benefits to a small number of people • Costs to a large number of people • Role of interest groups • Beneficiaries have huge interest in organizing • Burden is so spread out, little organized effort against policy Making Decisions

15. Client Politics • Localities can benefit • Infrastructure projects (MONEY) • Pork-barrel legislation • Can be valid or not • Logrolling = vote trading between Congressmen to pass legislation filled with pork • Legitimacy is a major factor in determining success • Earmarks • legislativeprovisions that directs • approved funds to be spent on specific projects, • specific exemptions from taxes or mandated fees. Making Decisions

16. Entrepreneurial Politics • Cost / Benefit • Benefits to a large number of people • Costs to a small number of people • Role of interest groups • Burden is focused so an interest group may try to kill the policy • Benefits are spread out so little incentive to join an interest group to get it passed • Needs the work of dedicated, hard-working people (person) to push agenda • Policy Entrepreneurs = dedicated, hard-working people (person) to push agenda Making Decisions

17. Entrepreneurial Politics • Rise in entrepreneurial politics • Role of media • Decentralization of Congress (drop in power of the parties) • Shift in social values Making Decisions

18. A B COSTS BENEFITS D C Making Decisions

19. Does Economic Power DOMINATE Political Power? • Wealth can buy influence • Politicians and business leaders often come from the same social class Business Regulation – Wealth and Power

20. Does Political Power Threaten Economic Power? • Politicians get more votes from the many proletariat • Politician get less votes from the few bourgeoisie Business Regulation – Wealth and Power

21. Reflects the views of the majority of voters • Does not attack the general business community • Examples • Sherman Act • Clayton Act • Creation of the Federal Trade Commission (FTC) Majoritarian politics and regulation

22. Feelings from the public • Strong • Unfocused • Was the “bad guy” a single big business? • Was the “bad guy” any business of a certain size? • Was the “bad guy” just monopolies? • Public would benefit from corporate competition • Price • Quality Majoritarian politics and regulation

23. Feelings from the business world • Vague wording of laws meant that the laws would have little effect • The MANY small businesses would benefit by getting legal protection from mega-business tactics Majoritarian politics and regulation

24. Rivals FIGHT for and against legislation • Examples using business owners vs. labor unions • Wagner Act • LABOR VICTORY • Right to form unions • Created National Labor Relations Board • 5 members • Each appointed by the sitting president • Presidential appointments can tilt the perspective Interest group politics and regulation

25. Examples using business owners vs. labor unions • Taft-Hartley Act • Business VICTORY • Right to restrict some union activities • Closed Shops • Secondary Boycotts • Court order can be used to block strikes in some circumstances Interest group politics and regulation

26. Examples using business owners vs. labor unions • Landrum-Griffin Act • Business VICTORY • Change the organizational structuring practices of unions to prevent corruption • Occupational Safety and Health Act • Labor VICTORY • Create OSHA Interest group politics and regulation

27. Examples of Client Politics and Regulation • Price Floors (dairy and produce) • Lowest legal price which can be charged for a product • Helps the producer (makes more profit) • Helps the economy (keeps unemployment down) • Costs to the people • Minimal or • Unknown Client politics and regulation

28. Examples of Client Politics and Regulation • Protectionist policies • Importation restrictions • Limit the amount of a good brought into the country • Apply a tariff to an imported good to artificially increase its cost to the consumer • Helps • The domestic producer • The domestic economy (unemployment) Client politics and regulation

29. Examples of Client Politics and Regulation • Protectionist policies • Costs to the people • Minimal or • Unknown Client politics and regulation

30. Disaster Relief • Programs go to specific localities • Public feelings • These people need the help • These people are victims Client politics and regulation

31. Disaster Relief • Highlights the need for LEGITIMACY • Client politics NEED to be considered worthy • “Illegitimate” beneficiaries make due with regulation more than with subsidies Client politics and regulation

32. Disaster Relief • Highlights the need for LEGITIMACY • “Illegitimate” beneficiaries make due with regulation more than with subsidies • Relies on “Insider Politics” • Deal with key Washington decision-makes (“inside the loop”) • Don’t count on public support • Create IRON TRIANGLES Client politics and regulation

33. Relies on creating PUBLIC support • Muckrakers • Ralph Nader • Policy entrepreneur needs to adopt a moralistic tone • At times, the agency can become too “cozy” with those it was created to regulate (captured) Entrepreneurial politics and regulation

34. Remedies for capture • Modern laws are more carefully worded when written • Specific standards • Specific timetables for implementation • Agencies regulate several different industries so they have no specific opponent to worry about Entrepreneurial politics and regulation

35. Remedies for capture • Public interest groups oversight (after creation of agency) • Media coverage • Federal Courts (to ensure regulation is followed) Entrepreneurial politics and regulation

36. Majoritarian Politics • Not an issue • No well-organized or enduring opponents • Interest Group Politics • Not an issue • Agencies are in cross-fire of opposing groups The issue of “Agency Capture”

37. Client Politics • Not an issue • No need, agency was createdforthose who would want to capture • Entrepreneurial Politics • Can be an issue • Remedies in place to safeguard agencies The issue of “Agency Capture”

38. Opinions change over time regarding: • Legitimacy • What are the true Costs • Who are the true Beneficiaries Perceptions, Beliefs, Interests and Values

39. The Struggle to Alter Public Opinion • The “here and now option” is the default feeling for most people • The cost argument is stronger than the benefit argument – sharper reaction to what is lost than what is gained Perceptions, Beliefs, Interests and Values

40. Values change over time: • What is good for the country? • What is good for my community? • What is good for the people? Perceptions, Beliefs, Interests and Values

41. Arguments FOR deregulation • Regulation of prices in competitive industries keep prices artificially high • Regulation also keeps competition down Deregulation

42. Arguments FOR deregulation • The market (law of supply and demand) will make corrections in the best interest of • The economy • The consumer • The producers Deregulation

43. Arguments AGAINST deregulation • Makes things more complicated • Process regulation may be a good thing • Worker safety • Consumer safety • Environmental safety … but • Price or Product regulation is a BAD thing Deregulation