Public Policy• A purposeful and consistent

course of action taken by government to address a particular problem

Public Policy

•3 Categories–Social Welfare Policy–Foreign Policy–Economic Policy

Social Welfare Policy

• The Welfare State– Since the 1930s– Includes Social Security, Medicare,

Medicaid, Food Stamps, Unemployment Insurance, aka ENTITLEMENT PROGRAMS–Programs like TANF (Temporary Assistance

to Needy Families) provide block grants to the states

Entitlements

• Entitlement spending is non-discretionary–Spending mandated by law

• Discretionary spending–The spending that Congress can adjust

from budget to budget

Who Gets What?

• Who receives the most benefits from social welfare policy?–The Elderly and the Middle Class

• Who receives the least benefits from social welfare policy?–Children and the Working Poor

The Elderly

• Widely seen as a deserving population• AARP is a powerful interest group• Main recipients of the two strongest

social welfare programs: SS and Medicare (which every worker contributes to)

The Middle Class• SS and Medicare relieve the financial

burden of caring for elderly family members

• Employers are not taxed when they contribute to an employees health insurance or pension plan

• Don’t have to pay income tax on mortgage interest. This promotes home ownership

The Working Poor

• Many are just above the poverty line• Have jobs without health insurance or

pensions (ACA designed to help)• Many are renters• Not much political power• They DO receive Earned Income Tax

Credit and can receive food stamps

Minorities, Women, and Children

• Disproportionately poor• Do not wield much political power• Single mothers with day care costs are

particularly burdensome• Our child poverty rate is alarmingly high

(over 20%)

The Nonworking Poor

• Most Americans resent able-bodied nonworking poor

• Without children, only eligible for food stamps

• With children, eligible for TANF, Medicaid, and food stamps

• Virtually no political clout therefore they do not shape public policy on this issue

Foreign Policy

• Crafted by a smaller group of people than those who influence domestic policy

• The American Foreign Policy Establishment– The President and his immediate foreign policy

advisors• Secretaries of Defense, State, and Treasury• Joint Chiefs of Staff• CIA• NSC• Homeland Security

U.S. Foreign Policy Establishment

• Leaders of Congress and key Congressional committees (Foreign Relations)

• Unofficial influences–Interest groups – Economic, Human

rights, Nationalities–The Media

The Tools of U.S. Foreign Policy

• Diplomacy• The United Nations• The International Monetary Fund (IMF)• Economic Aid• Alliances (NATO)• Military force

Economic Policy

• In the aftermath of the Great Depression, the federal government took a lead role in trying to stabilizing the economy and promoting economic growth

• Fiscal Policy– Taxing and spending policies of Congress

• Monetary Policy– Manipulation of the supply of money by the

Federal Reserve

Promoting Business and Protecting Consumers

• Congress provides categorical grants to the states to promote business development

• Business sectors get subsidies, tax breaks, and loans

• Bureaucratic agencies encourage and support businesses–Small Business Administration

Economic Policy

• Government also protects consumers and the environment by regulating businesses–Food and Drug Administration–Environmental Protection Agency–Consumer Product Safety Commission