Chapter 13 Domestic and economic policy
Chapter 13 Domestic and Economic Policy
The Policy making process agenda building --identifying a problem and getting it on the agenda policy formulation -the debate that occurs between government officials, and between the public in the media, and in campaigns policy adoption -the selection of a strategy for addressing a problem policy implementation -the administration of the selected policy(by bureaucrats, the courts, etc.) policy evaluation - when the public, officials and groups determine if the selected policy has the desired impact
The Policy Making Process agenda building -- identifying a problem and getting it on the agenda policy formulation – the debate that occurs between government officials, and between the public in the media, and in campaigns policy adoption – the selection of a strategy for addressing a problem policy implementation – the administration of the selected policy (by bureaucrats, the courts, etc.) policy evaluation – when the public, officials and groups determine if the selected policy has the desired impact
Maior government Assistance Programs o Temporary Assistance to Needy Families(TANF) replaced AFDC in 1996, this program uses federal funds which are administered by the states to help needy families o Supplemental Security Income(SSI)-provides a minimum income to the elderly and disabled who do not qualify for Social Security benefits o Food Stamps -these coupons that can be used to purchase food are now distributed to more than 2 8 million Americans with little or no income o Earned Income Tax Credit(EITC)-a tax credit used by low income workers who get back part or all pf the their Social Security taxes
Major Government Assistance Programs o Temporary Assistance to Needy Families (TANF) – replaced AFDC in 1996, this program uses federal funds which are administered by the states to help needy families. o Supplemental Security Income (SSI) – provides a minimum income to the elderly and disabled who do not qualify for Social Security benefits. o Food Stamps – these coupons that can be used to purchase food are now distributed to more than 28 million Americans with little or no income o Earned Income Tax Credit (EITC) – a tax credit used by low income workers who get back part or all pf the their Social Security taxes
FIGURE 13-1 The Official Number of Poor in the united States he number of individuals classified as poor fell steadily from 1961 through 1968. It then increased during the 1981-1982 recession. After 1994, the number fell steadily until 2000 when it started to rise again 卫30 25 1| 1965197019751980198519901995 2002 Ye ear
TABLE 13-1 Major Federal Environmental Legislation 1 899 Refuse Act. Made it unlawful to dump refuse into 1972 Federal Environmental Pesticide Cont rol Act navigable waters without a permit. A 1966 court decision Required that all pesticides used in interstate commerce be mak all indust nal wastes subject to this act approved and certified as effective for their stated purpose. 1948 Federal Water Pollution Control Act. Set standards Required certification that they were harmless to humans, for the treatment f munic ipal water waste before disharge. animal life, animal feed, and crops Revisions to this act were passed in 1965 and 1967. 1974 Clean Water Act. Originally called the Safe Drinking 1955 Air Pollution Cont ol Act. Authorized federal Water Act, this law set (for the first time)federal standards research programs for air pollut ion control for water suppliers serving more than twenty tive peaple, 1963 Clean Air Act. Assisted local and state govem ments having more than fifteen service connections, or operating inestablishing control programs and coordinat ing research. more than sixty days year 1965 Clean Air Act Anendments Authorized the estab 1976 Resource Conservation and Recovery Act lishment of federal standards for automobile exhaust emis Encouraged the conservation andd recovery of resources. Put sions, beginning with 1968 modIs hazardous waste under govemment control. Prohibited the 1965 Solid Waste Disposal Act. Prowided assistance to local opening d new dumping sites Required that all existing pen dumps be closed or upgrad to sanitary landfills by and state govemments for control programs and authorized 1983. Set standards for providing technical, financial, and research in this area market ing assistance to encourage solid waste management. 1965 Water Quality Act. Authorized the setting of stan dards for discharges into waters. 1977 Clean Air Act Amendments. Postponed the deadline for automobile emission requirements 1967 Air Quality Act Established air-quality regions and 980 Coraprehensive Environmental Response, acceptable regional pollution levels Required local and state Compensation, and Liability Act Established a"Supe fund govemments to implement approved control programs or be subject to feck ral controls to clean up toxic waste du 1990 Clean Air Act Amendments, Provided for precise font- Council on Environmental Quality (CEQ) for the purpose cf reduction in carbon monoxid and ctberexhaug emissions in coordinat ing all fed ral polluticn-cont rol programs author ixed the establishment of the Environmental protectioo certain areas that still had dangerous ocone levels in the year 2003, and a cap on total emissions of sulfur diox ik from ekc Ageny(EPA)to implement CEQ policies cnacase-by-case incity plants Placed new restncticrn cn toxic pollutants 1990 Oil Pollution Act Established liability for the clean-up 1970 Clean Air Act Arendraents, Authorized the EPA to of navigable waters after oil-spill disasters set national air-pollution standards and restricted the dis- charge cf six major pollutants into the lower atmosphere 1996 Food quality and Protection Act. Amend the Fedral A四平d四m元 n ogen pesticides in the cultivation and marketing of food produc percent(in adDition to the 1965 1999 Chemical Safety Information, Site Security, and Fuels the 1970s Regulatory Relief Act. Established new provisions to regulate 1972 Clean Water Act (Federal Water Pollution Control nsk management plans at certain chenical and fiel facilities Act Amendments). Set mt ical water-quality goal of restor. to reduce the risk of chemical explosions and to lesenthe vul ing polluted waters to swimmable fishable waters by 1983 nerability cf these fac ilities to criminal and terorist activities
Economic Policy Making Fiscal Policy - the use of changes in government spending or taxation to change national economic variables, like the unemployment rate Keynesian Economic Theory posits that using fiscal policy can alter economic variables(increasing government spending during economic turn downturns for example) Monetary Policy- the use of changes in th the money supply to change credit markets, unemployment and the inflation rate Monetary policy is determined by the Federal Open Market Committee(FOMC), part of the Federal Reserve system
Economic Policy Making Fiscal Policy – the use of changes in government spending or taxation to change national economic variables, like the unemployment rate - Keynesian Economic Theory posits that using fiscal policy can alter economic variables (increasing government spending during economic turn downturns, for example) Monetary Policy – the use of changes in the money supply to change credit markets, unemployment and the inflation rate - Monetary policy is determined by the Federal Open Market Committee (FOMC), part of the Federal Reserve System
TABLE 13-2 Marginal Tax Rates for Single Persons and Married Couples (2003) SINGLE PERSONS MARRIED COUPLES MARGINAL MARGINAL MARGINAL MARGINAL TAX BRACKET TAX RATE TAX BRACKET TAX RATE 0$7000 1% $0$14000 10% 7,0$2840 15% 140056800 15% $28,400s68,800 $56800$114650 25% $68,800143,500 114650$174,700 28% $143,500$311950 33% 174,700$311950 33% $311, 950 and above 35% $311,950 and above 35%
FIGURE 13-2 Workers per Retiree The average number of workers per Social Security retiree has declined dramatically since the programs inception ①三 25 兰 15 5 194619601972198520002030 Ye ear OURCEs: Social Security Administration and authors'estimates
Budget Deficits and the Public Debt the deficit is when the government spends more money than it receives in any given ear the public debt is the total amount of debt carried by the federal government also called the national debt
Budget Deficits and the Public Debt ~ the deficit is when the government spends more money than it receives in any given year ~ the public debt is the total amount of debt carried by the federal government, also called the national debt
TABLE 13-3 Net Public Debt of the Federal Government TOTAL (BILLIONS OF YEAR CURRENT DOLLARS 1940 427 235.2 1950 2190 1970 284.9 7093 1990 2,410.1 1992 2,9986 3,247.5 1994 3,432.1 1995 3,.6034 1996 3,747.1 1997 39000 1998 3,S70.0 1999 3,.632.9 2000 3,448.6 201 3.200.3 2002 3,528.7 3,S78.4 2004 4,254.5 estinate SOURcE: U.S. Office of Management and Budget
