Public Policy - Process Public Policy-Anything the government chooses to do or not to do. Political Agenda • Deciding what government is going to “do” • Constantly changing • “legitimacy” plays a huge role Legitimacy • Shared political values – What we believe is needed-welfare • Custom and Tradition – Habits are hard to break • Major events – Wars, natural disasters Who forces policy ? 1. • • • • Groups Organized labor African Americans Women Immigrants Who forces policy? 2. Institutions • Courts • Bureaucracy/President • Senate – Not the Founders plan! Who forces policy? 3. Media • Support and further the efforts of other groups • Create their own Now that you mention it… • Cost – burden (monetary or not) that some people must bear if the policy is adopted. Perceived or actual • Benefit – the satisfaction (monetary or not) that people will receive if the policy is adopted Keep in mind… • Perception is everything!! – Stem cell research – Clean coal – Ethanol – KCHIP • Who is going to cover the cost? Keep keeping in mind… • Legitimacy! – Welfare vs Aid to dependent children • Are they deserving? • “Who will benefit vs. who ought to benefit” Types of Policy Outcomes Costs Benefits Widely Distributed Concentrated Widely Distributed Majoritarian Politics Client Politics Social Security Defense Policy Aid to Public Education Agriculture Subsidies Concentrated Entrepreneurial Politics Interest Group Politics Air Pollution Controls Auto Fuel Economy Tax Policy Telecommunications *Policy entrepreneurs = Consumer advocates Applying Policy to Business Regulation • • • • Majoritarian politics Big costs Broad benefits Examples – Sherman Antitrust Act – Federal Trade Commission Applying Policy to Business Regulation • Interest Group Politics • One specific group bears the cost • Another specific group reaps the benefit • Examples – Organized labor Applying Policy to Business Regulation • Client Politics • We all pay – a few benefit • Regulation or support of certain professions – Agriculture Adjustment Act – Beauticians, barbers – Tobacco farmers Applying Policy to Business Regulation • • • • Entrepreneurial Politics Costs are paid by a few Benefits everyone Fear of industry “capture” • Examples – Pure Food and Drug Act