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Law Making and Political Strategies
© 2014 Routledge, Inc., Taylor and Francis Group. All rights reserved. PowerPoint Presentation Design by Charlie Cook CHAPTER 8 Law Making and Political Strategies © Routledge
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Learning Outcomes After studying this chapter, you should be able to:
Describe the branches of the federal government Discuss how business rules are made and enforced Explain the business–government relationship, public policy, and the types of economic public policies Describe how a bill becomes a law Identify the legislative stage that business should focus on to influence lawmaking and who should be the strategic focus Discuss political information strategies and message framing Explain the reasons for political campaign contributions, the role of PACs, and the difference between hard and soft money Describe what lobbyists do, access, and the revolving door Define the key terms in the chapter © Routledge
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The U.S. Constitution and Branches of Government
U.S. Constitutional Law Founding principles All persons are created equal with certain unalienable rights. Governing power is derived from consent of the people. Supremacy clause Federal laws have precedence over state laws. System of Checks and Balances No one branch of government has supreme power. Each branch has separate responsibilities and powers. © Routledge
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Government Branches Judicial Law interpretation and determination
Legislative Lawmaking Executive Law enforcement © Routledge
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Figure 8.1 Government Branches
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Federal, State and Local Government
Federal Government State Governments County, Parish, or District Governments Regional Governments Municipal Governments © Routledge
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Business Rules Public sentiment on issue Congress passes law on issue
Law establishes regulatory agency Agency issues rules to implement the law © Routledge
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Reasons for Government Regulation of Business
Setting rules of business Efficiency in granting a natural monopoly Control of the cost of negative externalities Ensure adequate consumer information Achieve social goals and equal opportunity © Routledge
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Figure 8.2 Laws, Regulation, and Enforcement
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Public Policy Public Policy Input and Issue Selection
Setting Public Policy Goals Taking Public Policy Action Assessing Public Policy Effect © Routledge
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Types of Public Policy Public Policy Economic Policy Social Policy
Fiscal policy Monetary policy Industrial policy Social services © Routledge
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Figure 8.3 Federal Government Budget
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Government Nonregulatory Influence on Business
Government subsidies Government loans and credit Tax incentives Helping business through government influences Government pay Government purchases Transfer payments © Routledge
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Political Parties Democratic Party Republicans
Liberal regarding moral issues and in favor of more government regulation, spending, and taxation and wealth redistribution Republicans Conservative regarding moral issues and in favor of free markets with less government regulation, spending, and taxation © Routledge
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Congressional Power Congressional Powers
Investigate matters of national importance Control government organizational structure Oversee offices Impeach or remove any civil officer Create laws Override presidential veto Amend Constitution Senate confirms presidential appointments Provide regulatory oversight Declare war © Routledge
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Figure 8.4 How a Bill Becomes a Law
Committee action—developing and voting on the bill in both chambers by smaller groups with expertise Floor action—further bill development and vote by both chambers Conference action—creating one bill for both chambers Vote by both chambers—House and Senate debate and vote President—signs into law or vetoes If vetoed, Congress—can override veto with a two- thirds vote of both chambers © Routledge
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Influencing the Legislative Process
Focus of Influence Efforts Focus on the committee stage Focus on the pivotal voters © Routledge
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Business Nonmarket and Market Strategies And Ethics
Factors influencing the level of political involvement by a firm: Size of firm Importance of government sales by firm Impact of government regulations on the firm Degree of concentration of the firm’s industry Issue’s benefit to firm vs. cost of its involvement Likelihood success in attaining influence on the issue © Routledge
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Information Strategies
Political information strategies Focus on technical facts and how the business side of the issue will benefit politicians and their constituents. Message framing Refers to the terms used to gain public sentiment for one’s side of an issue. Jobs That are affected by business issues and represent votes which are, in turn, important to elected representatives. © Routledge
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Figure 8.6 Political Strategies Used by Business with Government
Business Interest Groups Campaign Contributions, PACs Grand Nonmarket Strategies Lobbying Grassroots Constituency Lobbying Coalition Building Testimony Advisory Panels and Committees © Routledge
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Reasons for Campaign Contributions
Intended effects of campaign contributions Hard money Soft money To affect the outcomes of elections To obtain access to officeholders To influence adoption of regulations © Routledge
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Key Terms Democrats externalities fiscal policy hard money
industrial policy legislative process lobbying message framing monetary policy natural monopoly pivotal voters political action committees (PACs) political information strategies prisoners’ dilemma public policy regulations Republicans rules soft money supremacy clause taxation policy trade policy © Routledge
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