Public Policy Review

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Multistage Policy Cycle Model A Policy cycle model assumes that policy making is an ongoing and continuous process with different governmental entities and political interest involved at different stages. Problem Definition>Agenda Setting>Policy Adoption>Policy Implementation>Policy Evaluation These 5 steps are followed by feedback and then the process starts over. (See figure 2.3 on Pg 39 in the book) http://quizlet.com/16588541/public-policy-1-flash-cards/ Policy Eras (The breakdown of policy eras below integrates the vocab terms from the bottom of the google doc) The Progressive Era: 1900-1920 – Period of liberal policy expansion. Created some regulatory agencies and added the 16 and 17 amendments during this time. Social issues however were nearly achieved and struck down by the US Supreme Court. Progressive movement – was not one political movement, but several movements responding to these different problems. It included remnants of the 19th century populist movement of farmers against railroads and major corporations. Progressives involved muckrakers, journalists attacking child labor, deplorable working conditions. The movement consisted of religious organization concerned about poverty and vice, and women organizations campaigning for women’s suffrage and pension programs for mothers. It also involved the municipal reform movement’s crusade against corrupt and undemocratic governments. The progressive movement was most successful in producing new public policies in economical and political areas and least successful in the social realm. Economic Issues: Unregulated Markets and Monopolies – This was a period of unprecedented economic development and urban growth. Unregulated markets undermined the free and open market in two ways: allowed diseases or defective products to threaten the life of consumers and unscrupulous producers took advantage of conscientious producers so they demanded government regulations. Unregulated markets also tend to produce monopolies and allow trusts and price fixing to occur. Trust – a trust is a bogus company, generally made up of leaders from other companies who sit on the trust board. A long time ago, trusts were created manipulate and control markets. Price Fixing – has to do with a group of firms conspiring to increase prices. Price fixing, trusts, oligarchs, and monopolies were special problems because they undermined and subverted free competitive markets. Economic Policies of the Progressive Era – regulated railroads, inspected meats, monitored drugs, investigated monopolies and trusts, encouraged fair trade practices. Government intervened in all of these things with regulations due to pressure from the public.

Social Issues: Workplace Safety, Child Labor, and Urban Housing – social policies arose in this time, people demanded child labor laws, a minimum wage, maximum working hours, and sanitary working conditions. The 1920s: Conservative Contraction – terminated almost all social policies of the progressive era, emphasized cutting government spending and relying on the private sector. Prohibition was introduced. Conservative ideas of the period were Social Darwinism, business conservatives rejected survival of the fittest and thought programs that benefited business benefitted the entire country. Constitutional conservatives killed many progressive policies using contract and states’ rights. The contract argument believed that the laws violated an individuals right to contract for as many hours/wage with their employer would allow. The States’ rights were not to be interfered with based on the 10 amendment, federal government would be out of line by enacting any child labor or minimum wage laws. Social Darwinism – a social philosophy that was the dominant form of social conservatism. Spenser believed that beyond protecting private property, enforcing contracts, and maintaining national defense government should do nothing. Survival of the fittest would endure. Darwin advocated Laissez-faire capitalism (considered state intervention in the market dangerous, “hands off”) The 1930s: The Great Depression and the New Deal – Hoover – thought depression was temporary, tried to balance budget, cut taxes, opposed federal relief assuming that was a local issue, tried to establish a National Credit Association, established the Emergency Committee for Employment. Nothing got better under his policies. FDR - repealed prohibition, offered the New Deal and backed the idea of Keynesian economics. Roosevelt created several new policies that required him to create the presidential cabinet. US Supreme Court still struck down several New Deal policies but the programs still somewhat stimulated the economy and reduced unemployment. (List of FDR policies on Pg. 62 in book) Great Depression - followed the stock market crash of October 1929, pushing the nation to the brink of economic and social collapse. GNP tanked 50%. Businesses fail. Unemployment 25%. New Deal – federal relief programs, government regulation of utilities, government regulation of agriculture production and prices, public works programs, forest conservation, flood control, and the development of waterways. John Maynard Keynes – offered an alternative to the conservative economic view of the Depression. Conservative economists saw the depression as a natural process in which inefficient businesses went out of business and more successful business survived. Keynesian economics – argues that the Great Depression was symptomatic of overproduction and under consumption. Firms could not maintain high sales so they responded by cutting back production and laying off workers. This response increased unemployment, which in turn decreased the amount of money available for workers to purchase goods. Not necessarily temporary, it could get worse, markets could collapse, and doing nothing would only make matters worse. It supported tax cuts to stimulate the economy.

New Deal Policies - Created FDIC: Federal Deposit Insurance Corporation to stop the run on withdrawing from banks. Recovery Administration, WPA-Works Progress Admin. PWA-Public works Admin CCC-Civilian Conservation Corps. Social Security Act of 1935 (FHA) Federal Housing Act and PHA Public Housing Authority-gives mortgages to middle income, and projects for the poor. Wagner Act - established NLRB National Labor Relations Board to help solve labor conflicts. Created the Securities Exchange Commission (SEC) – regulated the stock market. The 1950s: Conservative Contraction – Period of Economic Expansion. Wages, productivity and profits increasing. Military spending decreased a little, but still higher than before due to start of Cold War. Eisenhower President (self-proclaimed conservative) 1952-1960. Economy did well the whole decade. Deficit Declined, taxes cut. 1. Began returning federal level programs to the states. a. In particular the FHA and Social Security Acts survived. 2. 1954: Supreme Court orders Desegregation of Schools. 3. Interstate Highway and National Defense Act of 1956- created highways we use today. (not conservative) 4. McCarthyism and Moral Panic. McCarthyism – arose from the cold war and a fear of international communism and nuclear war after the Soviet Union acquired the atomic bomb. Red Scare. Suppression of far-left free speech. Senator McCarthy led the charge with the Committee of Un-American Activities. He was finally discredited after accusing high-level military officials with stellar records. The 1960s and 1970s: Liberal Policy Expansion – This was the period of great social movements (civil rights, women’s rights, anti-Vietnam war, environmental protection) the economy continued to expand, unemployment stayed low, time of prosperity and political turmoil. Johnson – passed three major bills (Civil Rights Act of 1964,Voting Rights Act of 1965, Fair Housing Act of 1968), He also declared war on poverty and focused on urban development. Nixon – introduced block grants, based on social movements he was able to create the EPA, OSHA, and the Consumer Products Safety Commission. Federal policies and agencies proliferated under his leadership. Block grants – a program formed by combining several categorical grants in the same policy area. Many of the antipoverty programs of the 1960s were categorical grants, which are grants for narrow purposes or specific objectives established by the federal government. The late 1970s and 1980s: A Renewed Conservative Contraction – late 1970s brought high rates of unemployment and inflation. Neoconservatives emerged demanding reduction in government, cutting taxes, and making government more efficient. Carter – increased funding of public works, deregulated competitive regulatory programs (most notably the CAB), and he supported policies to make government more efficient. He also reorganized cabinet departments

to make them more efficient. Reagan – cut taxes and increased defense spending, he thought the cuts would compensate for the increase in spending but he only doubled the deficit. He appointed people and pressured others into reducing social programs. Increased drinking age to 21. The 1990s: Bush and Clinton – a period of experimentation with market mechanisms to deliver public services. States created private schools and initiated voucher systems for education. Welfare programs were reduced. Clean Air Act was expanded, The National Labeling and Education Act provided nutritional information on processed foods, The Civil Rights Act was expanded to prevent employment discrimination and harassment on the job. The Americans with Disabilities Act required employers to make accommodations for disabled people. 2001 and Beyond: George W. Bush – War on Terror due to 9/11 (cut taxes and increased military spending like Reagan) which caused an increase in the deficit, Domestic Policies like faith-based initiatives, pursued conservative morality policies (ban same sex marriage), argued for strong national education (no child left behind). Faith-based initiatives – efforts to allocate federal money to church organization to provide social services and community development programs Policy Theories State Centered and Decision Theory – assumes that the way government is organized and the choices individual governmental officials make are key factors in explaining change in public policies. State Centered Theory – focuses on the government itself – that is, the role of its organization and key officials in promoting policy change. It’s not a ball bounced around by interest groups or economic arrangements, but by state officials who initiate policy change and bring together the political interest essential to produce change. Decision Theory - focuses on the manner in which government officials and policy makers decide on policy options. There are many different approaches to the study of decision-making. One approach identifies different methods of decision-making depending on the extent of the proposed change and the level of information decision makers possess. Several major decisionmaking methods can be identified through this approach. The most common methods are 1) rational, 2) incremental, 3) technical, and 4) speculative augmentation. Rational decision-making – the rational decision makers require substantial amounts of information. They must clearly understand the problem they are attempting to solve and the specific policy options open to them. A popular approach is cost-benefit analysis (which uses a rough formula that compares the benefits of a policy to its costs. Costs are generally estimated by adding the amount of money the government and private business must spend to carry out the policy.) Incremental decision-making – considers the demands and perspectives of competing interest groups, based on Incrementalism – rather than seeking the best solution to a policy problem, which may be unacceptable, incrementalism strives to satisfy all groups and perspectives, especially established interests, and it involves bargaining and compromise. The term satisficing

is used to describe this process, which means a decision-making strategy that attempts to meet an acceptability threshold. Technical decision-making – based on using substantial information to make a small but important policy change. Speculative Augmentation - to describe the process of making nonincremental decisions that involved limited information and required substantial change. Public Choice – another common approach to decision making, applies assumptions about the market or economic models to public decision-making. The public choice theory applies assumptions about the market or economic models to public decision-making. Market models assume that decision makers in government and individual citizens pursue their own self-interest. Elitist and Pluralist Theory – dominated the debate over policy making for a long time, focused on different aspects of political power. Pluralists argue that elitists falsely assume that power is fixed and concentrated among the economic elite. They think elitists confuse corporate leaders who actually have power with political leaders and policy-making. The bias of pluralism is a problem with the theories. Elitist theory – advocates of elitist theory assumed that power was concentrated in a small group of economic or corporate elites directly involved in making public policies. Pluralist theory – proponents of pluralist theory assumed that power was dispersed among competing organized interest groups and those new policies arose from a process of bargaining, negotiation, and compromise. Group theorists assume government is responsive to organized interest that pressure government to respond to their concerns. They see the interest group process as an alternative to majoritarian democracy. The process is democratic so long as the officials respond to the interests. Bias of pluralism – these critics have identified two types of biases in the model. The pluralists favor organized groups. There are many advocacy organizations. Another type of bias is socioeconomic. In this case bias favors upper-strata interests. Cyclical Models – Liberal-Conservative Cycle and the Policy Cycle Liberal-Conservative Cycle – There are four reasons why policies shift back and forth, 1. Grassroots organizations that are liberal have trouble sustaining themselves over time 2. The public has a short attention span, loses interest and shifts to new issue 3. Generational change. 4. The conditions that produced liberal policies in the 1960s no longer existed in the conservative 1980s. Policy Cycle – See above terms Eclectic Theories – provide explanations for long-term trends, most useful explaining long-term stability. Punctuated equilibrium, social movement theory, and policy regime theory. Punctuated equilibrium – describes policy making in the United States. The term refers to long periods of policy stability interrupted by episodes of abrupt and substantial change. The long periods of stability are explained by political power balanced among interest groups. Shifts in public attention and political power explain the episodes of abrupt change.

Social movement theory – the social movement perspective offers an explanation for both long periods of policy stability and short bursts of policy change. Proponents of social movement theory insist that social movements rarely occur, but when they do, they produce substantial policy changes. Policy Regime Theory – focuses on trigger events, initiators, and agenda building. Periods of stability are produced by officials and organizations working to preserve the status quo as their jobs depend on it. Power shifts in organizations change paradigms and that causes new outlooks and abrupt change. Stressors like demographic shifts, mode of production changes, economic dislocation, and social movements can precipitate policy change. Policy regime model – the policy regime model builds on punctuated equilibrium (helping to explain both stability and change). This model is not original but incorporates many different theories of policy change. It draws from pluralist, elitist, and state centered theories. It integrates problem definition, agenda setting, policy adoption, and implementation. It also draws from the social movement theory. Because the policy regime model is a composite of different public policy theories, it provides a powerful framework for explaining continuity and change in public policies. It has several dimensions, power arrangements (patterned ways in which individuals and organizations influence the development and maintenance of policy), organizational arrangements (pertain to governmental agencies, bodies, and individuals involved in implementing policy), and the dominant policy paradigm (a conceptual framework that contains assumptions about the world). r Decision Theory Representation Theories ???

Goal oriented, but makes systematic mistakes
Bounded Rationality -- — Decision-makers are limited by biology in a manner that limits their abilities to maximize. They attend to problems piecemeal, react according to urgency imposed by emotions, and allow their identifications to color their objectivity. Positive Feedback · Positive feedback is a process in which the effects of a small disturbance on a system can include an increase in the magnitude of the perturbation <<wtf? (science majors get this ftw...birth hormones) · Increase in one variable leads to a further increase in another. · Examples: bandwagons, fads, arms races, rhetoric wars Rational Choice

· Requires substantial amounts of information and must complexly understand the problem that they are trying to solve and the specific policies open to them. This is called rational decision making. · Most commonly use cost-benefit analysis that compares the benefits of a policy to its costs Social Movement Theory · Perspective that offers an explanation for both long periods of policy stability and short bursts of policy change. · Insist that social movements rarely occur, but then they do they produce substantial policy changes ● Same things as punctuated equilibrium theory? <-- stimulus is different social vs public attention/political power groups Consumption Spending Policies · Or personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. There are two variants of consumption in the aggregate demand model, including induced consumption and autonomous consumption. you just defined consumer expenditure. I think it means how to influence it. which is basically FDR keynesian (demand) vs supplyside( reagan).

Economic Theories · Classical o Restrained social welfare policy o Rejected notions of involuntary unemployment o Malthus POV: Anti-poverty programs would encourage the poor to have more children and lead to an increase in poverty o Depressions were natural periods where the market purged itself of wasteful business · Keynesian o The economy existed in a state of general equilibrium, meaning that the economy naturally consumes whatever it produces because the needs of consumers are always greater than the capacity of the economy to satisfy those needs. Individuals produce so that they can either consume what they have manufactured or sell their output so that they can buy someone else's output. This perception rests upon the assumption that if a surplus of goods or services exists, they would naturally fall in price to the point where they would be consumed. Fiscal Policy

· Involves the national budget: using federal spending, purchasing and taxing, as well as special social programs and job projects Monetary Policy · The management and the circulation of money primarily through the Federal Reserve System Price Fixing · An agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level by controlling supply and demand. Laissez-faire capitalism– considered state intervention in the market dangerous. Deficit · The amount by which a government's expenditures exceed its tax revenues. The difference is made up for by borrowing from the public through the issuance of debt. Debt · The total amount of money that the United States federal government owes to creditors. The government's creditors include all individuals, businesses, governments and other organizations that own U.S. government debt securities Government Financial Obligations · A debt that is backed by the full taxing power of the U.S. government. Direct obligations include Treasury bills, Treasury bonds, and U.S. savings bonds. These investments are generally considered to be of the very highest quality. Mandatory Spending · Mandatory spending are those expenditures that must go into the U.S. budget. They are mandated by Federal law, and so can't be changed without, quite literally, an act of Congress. AS a result, the mandatory budget is an estimate of the cost to implement the benefits promised by these Federal laws. The estimate is made by the Office of Management and Budget, or OMB. · Example: Medicare and Social Security Inflation · A rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys

fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the Consumer Price Index) over time. Deflation · Decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate). Interest Rates · The rate at which interest is paid by borrowers for the use of money that they borrow from a lender. For example, a small company borrows capital from a bank to buy new assets for its business, and in return the lender receives interest at a predetermined interest rate for deferring the use of funds and instead lending it to the borrower. Medicare · Social insurance program since 1965 that guarantees health coverage to people ages 65 and older in addition to younger people with disabilities Medicaid · Health insurance program for certain people and people with low incomes and resources that is managed by the state Medicare Part D · Also called the Medicare prescription drug benefit, is a federal program to subsidize the costs of prescription drugs for Medicare beneficiaries in the United States. It was enacted as part of the Medicare Modernization Act of 2003 (MMA) and went into effect on January 1, 2006 MediGap · Is various private supplemental health insurance plans sold to Medicare beneficiaries in the United States that provide coverage for medical expenses not or only partially covered by Medicare. Medigap's name is derived from the notion that it exists to cover the difference or "gap" between the expenses reimbursed by Medicare and the total amount charged. As of 2006, 18% of Medicare beneficiaries were covered by a Medigap policy. Patient Protection and Affordable Care Act

· More commonly called Obamacare or the Federal Health Care Law was passed in 2010 · Aimed primarily at decreasing the number of uninsured Americans and reducing the overall costs of health care. It provides a number of mechanisms — including mandates, subsidies, and tax credits—to employers and individuals in order to increase the coverage rate. Additional reforms are aimed at improving healthcare outcomes and streamlining the delivery of health care. PPACA requires insurance companies to cover all applicants and offer the same rates regardless of pre-existing conditions or gender. The Congressional Budget Office projected that PPACA will lower both future deficits and Medicare spending. The Individual Mandate · Requirement by law that certain persons purchase or otherwise obtain a good or service. ● Given that insurance companies are restricted by law in their ability to alter insurance
rates based on pre-existing conditions, they must set their rates to at least cover their costs. This means that the rates on healthier individuals will be greater than what they would pay otherwise, while reducing the rates on less healthy individuals (e.g., those with pre-existing conditions). The healthier individuals (e.g. the young) will be under economic pressure to opt out of the system, which will cause the insurance companies to raise rates on those remaining insured in order to cover the lost revenue. This will further increase the pressure on healther individualAct

expanded the Medicare program to provide protection against catastrophic medical expenses and for the first time, provided coverage under the Medicare prs to opt out of buying health
insurance, which will further increase rates, until the market collapses. Mandated insurance is intended to prevent this downward spiral.

Medicare Catastrophic Coverage Act of 1988 · Wanted to provide protection against catastrophic medical expenses under Medicare. Specifically, the program for prescription drugs. To pay for these benefit expansions, a new supplemental premium tax on all persons eligible for Medicare was enacted. After massive protests by seniors, the law was essentially repealed the next year.

Adverse Selection · Also known as Anti-selection, or negative selection is a term used in insurance, risk management, and statistics. It refers to a market process in which undesired results occur when buyers and sellers have asymmetric information (access to different information); the "bad" products or services are more likely to be selected. For example, a bank that sets one price for all of its checking

account customers runs the risk of being adversely selected against by its lowbalance, high-activity (and hence least profitable) customers. Clinton’s Health Security Act The Clinton health plan required each US citizen and permanent resident alien to become enrolled in a qualified health plan and forbade their disenrollment until covered by another plan. It listed minimum coverages and maximum annual out-of-pocket expenses for each plan. It proposed the establishment of corporate "regional alliances" of health providers to be subject to a fee-for-service schedule. People below a certain set income level were to pay nothing.

Chapter 1 Allocational policies – entail the distribution of urban services: policy, fire, parks, museums, libraries, streets, sewers, and others. These policies tend to distribute city services on the basis of professional norms as such as greater police serves to higher crime areas, or more street repairs services to high use areas. Communitarians -- are just the opposite of libertarians. They want more government involvement in all areas. They want greater government regulation of morality issues. They oppose abortions, drugs, and prostitution, and want government to do something about these issues. Protect welfare and to protect the public from pollution and dangerous issues. Competitive regulatory policies – generally regulate entry into markets and may also regulate prices. Ex: Federal Communication Commission in issues licenses to radio and television broadcasting states to operate on the airwaves and in enforcing rules for operating. Conservatives – generally want more government to resolve morality issues and less government to resolve equity issues. They also support more governmental power to regulate obscenity and reduce drug abuse. They also support capital punishment and the expansion of governmental powers and prerogatives to maintain law and order and to regulate immoral behavior. Developmental policies – involve economic revitalization. Distributive policies – they appear to allocate benefits or resources to the larger population. Ex: the interstate highway system

Eminent domain – means governments have the power to seize land and offer just compensation or a fair price. Externality – it is a cost or benefit that arises apart from the market. That is, it is not reflected in the cost of goods and services sold. Pollution is a cost forced on people against their will. Governments can take tracts of land along a straight line to build a road, as long as they pay the landowner a fair price. Free rider – those who benefit from the good without pay for it. Thomas Hobbes – Political philosopher, imagined a state of nature and time before government. Before government, in the state of nature, the lives of people were “solitary, poor, nasty, brutish, and short.” Hobbes argued that people ga ve up their freedom in nature for the security they gain from government. People created government to maintain law and order. Liberals – favor less government to resolve morality issues and more government to resolve equity issues. They support the privacy of the individual to make his/her own personal choices on morality issues. Suspicious of increasing policy powers, especially where they see the potential loss of civil liberties of all citizens, including those accused of crime. Opposed to government regulation of what videos or movies citizens may see, etc. liberals support individual choices over government intervention. Libertarians – they advocate less government involvement and more individual choice in both morality and equity issues. Like liberals, libertarians oppose government regulation of movies, video, and CDs. Oppose criminalization of abortion, drug abuse, and prostitution. Like conservatives, libertarians oppose government welfare programs and government regulation of pollution or consumer product safety. In short, libertarians want more individual freedom and less government in all areas. Market failure – Governments responds to other forms of economic crisis, especially runaway inflation, through other means. It regulates money and it negotiates with oilproducing nations to increase the supply of oil in order to slow the rising price of energy. Morality policies – involve moral issues and notions of right and wrong. They tend to be grounded in religion and entail conflicts over values and principles. Policy activities – most public policy activities involved the allocation of resources, the provision of services, the regulation of behavior, or the distribution of values.

Policy statements – public policy statements express the intentions, goals, and values of government. Procedural policy – it outlines the steps in a process: courtroom procedures, procedures for the government to take people’s land and homes (eminent domain) to build expressways. It involves the protection of individuals’ rights, like the right to a fair hearing.

Protective regulatory policies – protect the public from a perceived harm. Ex: Environmental Protection Agency, etc, all of which protect the public from pollution, hazardous products, work place dangers, and unsafe airplanes. Public good – a public good is one from which everyone in a community can benefit without necessarily paying for it. Public policies – Thomas Dye referred to public policies as “whatever governments choose to do or not to do.” Public policies consist of courses or patterns for goal oriented actions developed and executed by governmental officials. Substantive policy – a substantive policy entails the allocation of resources and is expected to have a significant impact. Ex: clean Air Act of 1990 Symbolic policy – has emotional appeal. It embodies values and ideals.

Chapter 2 Agenda setting – once a situation is defined as a problem requiring governmental action, the policy-making process moves to the agenda-setting phase. The theory of agenda setting examines the process in which issues or problems are raised. Bias of pluralism – these critics have identified two types of biases in the model. The pluralists favor organized groups. There are many advocacy organizations. Another type of bias is socioeconomic. In this case bias favors upper-strata interests. Cost-benefit analysis – uses a rough formula that compares the beneficial approach is cost-benefit analysis, which uses a rough formula that compares the benefits of a policy to its costs. Costs are generally estimated by adding the amount of money the government and private business must spend to carry out the policy.

Decision theory – focuses on the manner in which government officials and policy makers decide on policy options. There are many different approaches to the study of decision-making. One approach identifies different methods of decision-making depending on the extent of the proposed change and the level of information decision makers possess. Several major decision-making methods can be identified through this approach. The most common methods are 1) rational, 2) incremental, 3) technical, and 4) speculative augmentation. Elitist theory – advocates of elitist theory assumed that power was concentrated in a small group of economic or corporate elites directly involved in making public policies. Government agenda – government agenda issues are discussed inside government: Congress, the president’s office, bureaucratic agencies, or the courts. Group theory – is based on three assumptions about society and government. First, people are social beings and exist in a social or organizational context (church, labor union, social club, family, etc). Second, political interests are expressed in the context of political. As issues impact individuals, they either mobilize the organizations they are a part of or form new organizations. Finally, group theories assume that government is responsive to organized political interests that pressure government to respond to their concerns. Incrementalism – rather than seeking the best solution to a policy problem, which may be unacceptable, incrementalism strives to satisfy all groups and perspectives, especially established interests, and it involves bargaining and compromise. Pluralist theory – proponents of pluralist theory assumed that power was dispersed among competing organized interest groups and those new policies arose from a process of bargaining, negotiation, and compromise. Policy adoption – it has to do with the governmental institution creating the policy. Any institution of government can develop and adopt a public policy: Congress, the presidency, the courts, and the bureaucracy make policies all the time. Policy cycle model – assumes that policy making is an ongoing and continuous process with different governmental entities and political interest involved at different stages. The simplest version is the three-stage model that entails policy making, policy implementation, and policy impact. Policy is adopted in the policy-making stage. Policy is carried out in the implementation stage.

Policy implementation– it involves the process of carrying out the policy. It identifies four major factors that explain successful or unsuccessful implementation: 1) statutory, 2) degree of change, 3) environmental, and 4) institutions of government. Policy monopoly – it’s a closed system of policy making – open only to the actors within the close net of decision makers in the system. It consists of bureaucratic, congressional, and interest group leaders who have the same set of beliefs, ideas, and images about a policy. Policy regime model – the policy regime model builds on punctuated equilibrium (helping to explain both stability and change). This model is not original but incorporates many different theories of policy change. It draws from pluralist, elitist, and state centered theories. It integrates problem definition, agenda setting, policy adoption, and implementation. It also draws from the social movement theory. Because the policy regime model is a composite of different public policy theories, it provides a powerful framework for explaining continuity and change in public policies. It has several dimensions, power arrangements, organizational arrangements, and the dominant policy paradigm. Problem definition – during the first stage, problem definition, political leaders define a problem as one requiring a public policy response. Leaders identify its cause, consequences, and solution, and their definition shapes the policy solution. Public choice –The public choice theory applies assumptions about the market or economic models to public decision-making. Market models assume that decision makers in government an individual citizens pursue their own self-interest.

Punctuated equilibrium – describes policy making in the United States. The term refers to long periods of policy stability interrupted by episodes of abrupt and substantial change. The long periods of stability are explained by political power balanced among interest groups. Shifts in public attention and political power explain the episodes of abrupt change. Rational decision-making – the rational decision makers require substantial amounts of information. They must clearly understand the problem they are attempting to solve and the specific policy options open to them. Satisficing – students of public policy use the term satisficing to describe this process. Finally, policies tend to be incremental because established and powerful interest

groups have a stake in maintaining the status quo, especially if existing arrangements favor them. Social movement theory – the social movement perspective offers an explanation for both long periods of policy stability and short bursts of policy change. Proponents of social movement theory insist that social movements rarely occur, but when they do, they produce substantial policy changes. Speculative augmentation – to describe the process of making nonincremental decisions that involved limited information and required substantial change. State centered theory – focuses on the government itself – that is, the role of its organization and key officials in promoting policy change. It’s not like a ball bounced around by interest groups or economic arrangements, but by state officials who initiate policy change and bring together the political interest essential to produce change. Chapter 3 Block grants – a program formed by combining several categorical grants in the same policy area. Many of the antipoverty programs of the 1960s were categorical grants, which are grants for narrow purposes or specific objectives established by the federal government. Cyclical change theory – another model of change taken from nature is the cyclical change theory. Cyclical changes are common in nature. Ex: changing of season. It is suggested that public policies also change in cycles, alternating between periods of liberalism and conservatism. Liberal periods are characterized by the expansion of welfare and protective and competitive regulatory policies. Conservative periods produce constrictions and moral panics (policies designed to regulate moral turpitude or sin). Faith-based initiatives – efforts to allocate federal money to church organization to provide social services and community development programs. Federal Housing Administration – addressed the housing needs of both low- and middle-income families. The FHA guaranteed mortgages for middle-income homebuyers. Great Depression – followed the stock market crash of October 1929, pushing the nation to the brink of economic and social collapse.

John Maynard Keynes – offered an alternative to the conservative economic view of the Depression. Conservative economists saw the depression as a natural process in which inefficient businesses went out of business and more successful business survived. Keynesian economics – argues that the Great Depression was symptomatic of overproduction and underconsumption. Firms could not maintain high sales so they responded by cutting back production and laying off workers. This response increased unemployment, which in turn decreased the amount of money available for workers to purchase goods. Not necessarily temporary, it could get worse, markets could collapse, and doing nothing would only make matters worse. It supported tax cuts to stimulate the economy. Laissez-faire capitalism – considered state intervention in the market dangerous.”hands off” McCarthyism – arose from the cold war and a fear of international communism and nuclear war after the society union acquired the atomic bomb. Red Scare. Monopoly – arises when a single firm controls a market. New Deal – federal relief programs, government regulation of utilities, government regulation of agriculture production and prices, public works programs, forest conservation, flood control, and the development of waterways. Oligopoly – exists if only a few firms control a market. Price Fixing – has to do with a group of firms conspiring to increase prices. Price fixing, trusts, oligs, and monopolies were special problems because they undermined and subverted free competitive markets. Progressive Era (1900-1920) – a period of liberal policy expansion. Public policies in that period emerged in reaction to three sets of problems: economic, social, and political. Progressive movement – was not one political movement, but several movements responding to these different problems. It included remnants of the 19th century populist movement of farmers against railroads and major corporations. Progressives involved muckrakers, journalists attacking child labor, deplorable working conditions. The movement consisted of religious organization concerned about poverty and vice, and women organizations campaigning for women’s suffrage and pension programs for

mothers. It also involved the municipal reform movement’s crusade against corrupt and undemocratic governments. The progressive movement was most successful in producing new public policies in economical and political areas and least successful in the social realm. Public Housing Authority -- addressed the housing needs of both low- and middleincome families. The PHA built housing projects for poor families. Punctuated equilibrium – the expression punctuated equilibrium also characterizes the process in which public policies evolve. Public policies are stable for a long period of time and interrupted occasionally by periods of abrupt change. However, during times of crises, public policies change abruptly and substantially. Social Darwinism – a social philosophy that was the dominant form of social conservatism. Spenser believed that beyond protecting private property, enforcing contracts, and maintaining national defense government should do nothing. Survival of the fittest would endure. Trust – a trust is a bogus company, generally made up of leaders from other companies who sit on the trust board. A long time ago, trusts were created manipulate and control markets. 1930’s: The great Depression and the New Deal Profound Policy Expansion in reaction to crisis. And repealed 18th amendment, prohibition. Great Depression-followed the stock market crash of October 1929, pushing the nation to the brink of economic and social collapse. GNP tanked 50%. Businesses fail. Unemployment 25%. Hoover- tried to balance budget and cut taxes. Rejected federal relief. Didn’t really work FDR and Keynes New Deal- federal relief programs, government regulation of utilities, government regulation of agricultural production and prices, public works programs, forest conservation, flood control, and the development of waterways. John Maynard Keynes – offered an alternative to the conservative economic view of the Depression. Conservative economists saw the depression as a natural process in which inefficient businesses went out of business and more successful business survived. Keynesian economics – argues that the Great Depression was symptomatic of overproduction and underconsumption. Not necessarily temporary, not cyclical, and

doing nothing would be bad. Stimulating Jobs was key. Give people jobs, even if stupid jobs, they’ll buy stuff and economy ^ New Deal Policies Created FDIC: Federal Deposit Insurance Corporation to stop the run on withdrawing from banks. Recovery Administration, WPA-Works Progress Admin. PWA-Public works Admin CCCCivilian Conservation Corps. Social Security Act of 1935 (FHA) Federal Housing Act and PHA Public Housing Authority-gives mortgages to middle income, and projects for the poor. Wagner Act- established NLRB National Labor Relations Board to help solve labor conflicts. Created the Securities Exchange Commission (SEC). With so much new stuff to run, Roosevelt created the “office of the president” to help manage the enlarged Govt. Although the NEW DEAL helped, only the high level of Gov’t spending in WWII took the nation out of depression. Unemployment dropped below 2% in WWII. 1950’s: Conservative Contraction Main Theme: Period of Economic Expansion. Wages, productivity and profits increasing. Military spending decreased a little, but still higher than before due to start of Cold War. Eisenhower President (self-proclaimed conservative) 1952-1960. Economy did well the whole decade. Deficit Declined, taxes cut. 1. Began returning federal level programs to the states. a. In particular the FHA and Social Security Acts survived. 2. 1954: Supreme Court orders Desegregation of Schools. 3. Interstate Highway and National Defense Act of 1956- created highways we use today. (not conservative) 4.. McCarthyism and Moral Panic. McCarthyism – arose from the cold war and a fear of international communism and nuclear war after the soviet union acquired the atomic bomb. Red Scare. Suppression of far-left free speech. -Senator McCarthy lead the charge with the Committee of Un-American Activities. -He was finally discredited after accusing high level military officials with stellar records. Chapter 10 Amtrak

Antitrust Division of the Justice Department Artificial Monopolies Capture Civil Aeronautics Board (CAB) Consolidation Disorganized Markets Fairness doctrine Federal Communications Commission (FCC) Federal Railroad Administration (FRA) Granger Movement Interstate Commerce Commission (ICC) National Highway Transportation Safety Administration National Railroad Passenger Corporation Natural Monopolies Obscenity Rules Populist Movement Surface Transportation Board (STB) Unstable Markets

Chapter 14 Adam Smith Arthur Pigou Budget Deficit Business Cycle Capital-Intensive Industries David Hume David Ricardo Demand Side Downturn Federal Reserve Board Fiscal Policy George Gilder Inflation Rate J.B. Say John Maynard Keynes John Stuart Mill Law of Supply and Demand Milton Friedman Monetary Policy Multiplier Effect

Say’s Law Stagflation Supply Side Thomas Malthus Unemployment rate Upswing Chapter 6 American Medical Association Health Maintenance Organization (HMOs) Medicaid Medicare Part A Medicare Part B Medicare Part C Medicare Part D Medigap Preferred Provider Organizations (PPOs)

Chapter 9 Is it even necessary to know anything from this chapter for the exam? American Federation of Labor (AFL) Arbitration Association of Federal, State, County, and Municipal Employees (AFSCME) Associations Benevolent Societies Binding Arbitration Blacklist Boycott Closed Shop Collective Bargaining Congress of Industrial Organizations (CIO) Ergonomics Federal Labor Relations Authority (FLRA) Guilds Haymarket Riot Industrial Workers of the World (IWW) Knights of Labor Ludlow Massacre Mediation National Institute of Occupational Safety and Health (NIOSH)

National Labor Relations Board (NLRB) Professional Air Traffic Controllers Organizations (PATCO) Public Employee Relations Boards (PERBs) Right-to-work state State Employee Relations Boards (SERBs) Unfair Labor Practice Union Shop Yellow Dog Contract

Chapter 5 Aid for Families with Dependent Children (AFDC) Cash assistance Children’s Bureau Community Action Agencies Culture of Poverty Food stamps In-kind benefits programs Job-training programs New Deal Poorhouse Public Assistance Public Employment Programs Racialism Section 8 Social Darwinism Social Insurance Supplemental Security Income (SSI) Temporary Assistance for Needy Families (TANF) Unemployment Compensation Women, Infants, and Children (WIC)

the sample test is pretty specific, this doc is very general sample test has questions on it that we haven’t talked about in class.

The real test will have a detailed pic? probably a graph of the cycle, fill it in type 8=======>

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