1. Chapter 17 The Policy-Making Process

2. Setting the Agenda A.Political Agenda: Issues that people believe require government action B.Certain shared beliefs determine what is legitimate (proper, right) for the government to do. This legitimacy is affected by several forces: 1.Shared political values 2.The weight of custom and tradition 3.The impact of events 4.Changes in the way political elites think and talk about politics

3. The legitimate scope of government action A.Beliefs about legitimacy has expanded because we now accept and or encourage “big government” 1.Events trigger government action a.Garfield Assassinated b.Great Depression c.9/11 d.The housing bubble bursts

4. The legitimate scope of government action continued B.Also, it is the case that government grows and adds new issues to its agenda without a critical event or widespread public demand. Examples 1.1966 automobile safety 2.Occupational Safety and Health Act 1970 a.Why? Four Reasons:  Behavior of Groups  Institutions  Media  Actions by the states

5. 1. Behavior of Groups A.Small/large groups of people, organized or unorganized, who demand government action 1.Organized labor demands 2.Black riots in American cities in the 1960s 3.The demands of these groups are awarded only if society allows

6. 2. Institutions A.The courts: courts have played a leading role in advocating unpopular causes. 1.1954 when the Supreme Court ordered schools desegregated 2.School busing B.The Bureaucracy: bureaucracy has begun to think up problems for government to solve rather than simply to respond to the problems identified by others C.The Senate: has become one of the sources of political change rather than, as the Founders intended, a balance designed to moderate change

7. 3. Media: A.can act as gatekeeper and encourage government to add issues to its agenda

8. 4. Action by the States A.States merely take the lead and congress later passes law: “Do Not Call” law B.Litigation that changes industry throughout the country -1998 tobacco companies raised prices and paid large sums of money to states and individuals

9. Making a Decision: Once an issue is on the political agenda, its nature affects the kind of politicking that ensues.

10. Cost and Benefit A.Cost: any burden (monetary or non-monetary, real or perceived), that a group must bear, e.g.: 1.Federal child-care programs (taxes). 2.Busing to achieve school desegregation (taxes, psychological stress) 3.Tariffs (higher prices for goods) B.Benefit: any satisfaction (monetary or non- monetary, real or perceived) that a group will enjoy from a policy, e.g., 1.Federal child-care programs (lower child care costs for parents). 2.Busing to achieve school desegregation (improvement in opportunity, greater racial harmony). 3.Tariffs (more jobs for workers, more profits for businesses).

11. Widely-distributed and Narrowly-concentrated A.Costs and benefits can be either widely- distributed (to many, most, or all citizens) or narrowly-concentrated (for a relatively small number of citizens or groups). Examples: 1.Widely-distributed costs: income tax, social security tax, farm subsidies 2.Narrowly-concentrated costs: factory air emission standards, higher capital gains taxes for the wealthy, gun control regulations. 3.Narrowly-concentrated benefits: Farm subsidies, tariffs 4.Widely-distributed benefits: Social Security benefits, strong national security, clean air, federal highways, antitrust legislation.

12. Four types of policies Majoritarian, Interest Group, Client, Entrepreneurial

13. What do you think? I. I.Stimulus Package? II. II.N.Y. drops proposed taxes on iTunes, haircuts New York has scrapped a proposal that would have raised taxes on items such as sugary soft drinks, iTunes downloads and haircuts, Gov. David Paterson said Wednesday.N.Y. drops proposed taxes on iTunes, haircuts III. III.Key union renews push for hotly disputed labor bill One of the the country's most powerful unions stepped up its campaign for a hotly disputed labor bill Monday, holding a rally on the eve of the bill's formal introduction in Congress.Key union renews push for hotly disputed labor bill IV. IV.Group finds carcinogens in bath products Many children's bath products contain chemicals that may cause cancer and skin allergies, according to a report released Thursday by the Campaign for Safe Cosmetics.Group finds carcinogens in bath products V. V.House passes water bill with billions for states WASHINGTON (Reuters) - The US House of Representatives approved a bill on Thursday that would dedicate $19.4 billion to water and wastewater infrastructure, including $13.8 billion for state's water funds over five years.House passes water bill with billions for states

14. What do you think? I.http://video.google.com/videosearch?q=brad+pitt+nancy+pelosi+jimmy&hl=en&emb=0&aq=f# http://video.google.com/videosearch?q=brad+pitt+nancy+pelosi+jimmy&hl=en&emb=0&aq=f#

15. Majoritarian policies A.Involve widely distributed costs and widely distributed benefits. B.Examples: Social Security, national defense C.Analysis: 1.Usually not dominated by interest groups: virtually everyone benefits from these, so why should an interest group use scarce resources to lobby for policies that everyone will benefit from? Interest groups will benefit whether or not the devote resources to lobbying  Lack of incentive to participate 2.When a policy is adopted and people are convinced that benefits are worth the cost, debate ends and the program tends to steadily grow, and perhaps even becomes a “sacred cow” that the government dare not touch (e.g. Social Security).

16. Interest group policies A.Involve narrowly concentrated costs and narrowly concentrated benefits. B.Examples: tariffs, antitrust exemptions (Major League Baseball) C.Analysis: these tend to be fought over by interest groups: the affected parties are small enough, and the potential costs and benefits are great enough, to warrant interest group participation.

17. Client policies A.Involve widely distributed costs and narrowly concentrated benefits. B.Examples: farm subsidies, airline or trucking regulation, pork barrel bills. C.Analysis: 1.Stong incentive for interest groups to participate. Groups will receive the benefits, but the costs will be spread out to everyone. 2.Since costs are so widely distributed and therefore relatively small to each consumer, cost payers are sometimes unaware that they are even paying the costs (e.g., dairy subsidies) 3.Since interest groups benefit so much from these, they are said to be a “client” of the related federal agency—client groups.

18. Entrepreneurial policies A.Involve narrowly concentrated costs and widely distributed benefits. B.Example: consumer product safety legislation, ending farm subsidies, deregulation. C.Analysis: 1.Strong incentive for potential cost-paying group to participate. 2.Prospective beneficiaries may find widely distributed benefits too small to work hard for. 3.Because of a and b, policies of this category are often defeated by the concerted efforts of cost-paying interest groups. 4.Despite this, such policies are from time to time passed through the strong efforts of people who act on behalf of the unconcerned or unaware  these are called policy entrepreneurs (e.g., Ralph Nader)

19. The case of business regulation

20. A.The question of wealth and power 1.One view: economic power dominates political power a.Wealth can buy political power b.Politicians and business people with similar backgrounds and, thus, ideologies c.Politicians must defer to business, to keep the economy healthy 2.Another view: political power is a threat to a market economy 3.Neither extreme correct

21. Majoritarian politics A.Antitrust legislation in 1890s 1.Public indignation strong but unfocused 2.Legislation vague; no specific enforcement agency 3.Sherman Act (1890) did not define trade illegalities or provide an enforcement agency 4.Antitrust legislation strengthened in the twentieth century a.Presidents take initiative in encouraging enforcement b.Politicians, business leaders committed to firm antitrust policy 5.Federal Trade Commission created in 1914; Clayton Act (1914) made certain practices illegal 6.Enforcement determined primarily by ideology and personal convic­tions of the current presidential administration

22. Interest group politics A.Labor-management conflict 1.1935: labor unions seek government protection for their rights; business firms in opposition a.Unions win 2.Wagner Act creates National Labor Relations Board (NLRB) a.1947: Taft-Hartley Act a victory for management b.1959: Landrum-Griffin Act another victory for management 3.Politics of the conflict a.Highly publicized struggle b.Winners and losers determined by partisan composition of Congress 4.Economic conditions also affected outcomes 5.After enactment of laws, conflict continues in NLRB and courts B.Similar pattern found in Occupational Safety and Health Act of 1970 1.Reflects a labor victory with agency established 2.Appeals again made by business to courts about regulations

23. Client politics A.Agency capture likely when benefits focused and costs dispersed—agency created to serve a group’s needs B.Licensing of attorneys, barbers, etc. 1.Restricts entry into occupation or profession a.Allows members to charge higher prices 2.People not generally opposed a.Believe regulations protect them 3.Costs are not obvious C.Regulation of milk industry, sugar production, merchant shipping 1.Prevents price competition and keeps price up 2.Public unaware of inflated prices

24. Entrepreneurial politics; I.relies on entrepreneurs to galvanize public opinion, mobilize congressional support A.1906: Pure Food and Drug Act protected consumer B.1960s and 1970s: large number of consumer and environmental protection statutes passed (e.g., Clean Air Act, Toxic Substance Control Act) C.Policy entrepreneur usually associated with such measures (e.g., Ralph Nader) 1.Often assisted by crisis or scandal 2.Debate becomes moralistic and extreme

25. Entrepreneurial Politics continued A.Risk of such programs: agency may be captured by the regulated industry 1.Newer agencies less vulnerable a.Standards specific, timetables strict so relatively little discretion b.Usually regulate many different industries; thus do not face unified opposition c.Their existence has strengthened public-interest lobbies that sought their creation d.Public interest groups can use courts to bring pressure on regulatory agencies

26. Perceptions, beliefs, interests, and values

27. Problem of definition 1.Costs and benefits not completely defined in money terms 2.Cost or benefit a matter of perception 3.Political conflict largely a struggle to make one set of beliefs about costs and benefits prevail over another

28. Types of arguments used 1.Here-and-now argument—people care more about the present than the distant future 2.Cost argument—people react more strongly to costs than to benefits

29. Role of values 1.Values: our conceptions of what is good for our community or our country 2.Emphasis on self-interest leads to neglecting the power of ideas

30. Deregulation A.Example: airline fares, long distance telephoning, trucking B.A challenge to iron triangles and client politics C.Explanation: the power of ideas 1.Idea: governmental regulation was bad in industries that could be competitive 2.Notion started with academic economists, who were powerless but persuaded politicians 3.Politicians acted for different reasons a.Had support of regulatory agencies and consumers b.Industries being deregulated had few political allies

31. Reducing subsidies A.Example: tobacco industry 1.Supported by members of Congress from tobacco-growing states 2.Allowed growers to borrow against unsold tobacco and not pay back loans 3.Public went along until smoking became a well-publicized national health problem 4.New system: growers pay subsidies via mandatory contributions 5.Widely held beliefs (against smoking) defeated narrow inter­ests (subsidies) Presidents since Ford have sought to review governmental regulation

32. Many groups oppose deregulation 1.Dispute focuses mostly on the results of deregulation 2.Process regulation (social regulation) can be supported, even when price deregulation is favored