1. Public Policy Unit 5

2. Public Policy Introduction 1.What is politics? 2.What is public policy? 3.What is an example of a government policy? 4.How do policies get made? See figure in book on pg 5.What are some of the biggest problems facing our country today?

3. Policymaking Process 1.Agenda Setting - a challenge to get interest groups, Congress, the bureaucracy, POTUS agreeing on the agenda 2.Formulating the policy – Several versions of the policy are designed until compromise is achieved 3.Adopting the policy – Can take affect through: law, executive order, bureaucratic order, or court decision 4.Implementing the policy – Letting the public know, punishing offenders 5.Evaluating the policy – policymaking is a continuous process with many calls to change or make corrections We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution

4. Economic Policy Two separate thoughts on how government should implement economic policy: 1. Laissez-Faire – “To leave alone”, no gov’t control 2. Keynesian – Gov’t should manage the economy

5. Fiscal Policy Fiscal policy is the government raising money and spending it. - How does the government raise money? - How does the government spend money? * President suggests the budget to Congress, Congress votes and decides on the final budget* IncomeSpending Federal Income Tax - 40% Corporate Income Tax – 10% Social Insurance Tax – 30% Other Taxes (estate, tariffs, gas, alcohol, payroll)- 10% Borrowing – Making up the budget difference Mandatory Spending (Entitlements) – 40-60 % (Social Security, Medicare, Pensions) National Debt – 5- 10% (We only pay the interest on our debt each year) Discretionary Spending – Everything Else – 30%-40% - Defense = 18 % - Education, Aid, Infrastructure

8. Monetary Policy Monetary policy is the government’s control of the money supply. The Federal Reserve Board controls how much or how little money is in circulation. Too much money = inflation Too little money = deflation Federal Reserve controls money supply by: Adjusting interest rates  Higher interest rates discourage borrowing money (Less money in circulation), Lower interest rates encourages it (More money in circulation)

9. Foreign Policy Until the 20 th century, the USA was generally isolationist, we avoided entangling alliances whenever possible. Our involvement in WWI and WWII encouraged our involvement in international affairs through our status as superpower During the Cold War  Containment = give $$$, military support, etc to prevent the spread of communism Post 1991  War on Terror

10. Foreign Policy Foreign Policy Goals: 1.Protect national security 2.Provide international leadership 3.Insuring balance of power 4.Cooperating with other nations in solving problems 5.Promoting human rights and democratic values 6.Fostering cooperative foreign trade and globalization * President, Secretary of State, National Security Council, and the CIA work together to make foreign policy.

11. Foreign Aid by country