Public Policy #2: Gov & Econ Who is the nation’s largest employer?

Public Policy: Gov’s course of action on any topic –Environmental Policy –Drug Policy –Tax Policy How does the gov decide what to do? What is the #1 issue facing America today?

Role of Gov in Economy 1.Regulate business: A.Prevent abuse: OSHA – job safety SEC – insider trading B.Protect consumers: FDA, FCC C.Negative Externalities : EPA D.Promote competition: antitrust legislation

2. Provide Public Goods Public Goods: products the gov provides for free (via taxes) that are available to all –Library, Park –Privatization : public companies that become private Garbage Hospitals

Should the post office be privatized?

3. Economic well being Provide education, clean food / water Medical? –Who gets medical coverage provided for by the gov today? –Should the gov provide health care for everyone?

4. Redistribute income Transfer payment: take money (via taxes) from 1 group to give to another –Medicaid, EBT, Head Start, WIC Is this fair?

5. Stabilize Economy What has the gov done to try to fix our current recession? –Cut taxes –Increased govt spending: “stimulus package” –Help for foreclosures –Cash for Clunkers –Tax Credit for buying a new home

What should the government do to fix the economy?