Policy Making, Budget,
Social Welfare, Civil
Liberties, and Civil Rights
Chapter 15 - 19
The Policy Making Process: Setting
the Agenda
The Legitimate Scope of Government
Action




Grows with time and tradition
Less discussion about whether
something is government’s responsibility
Crisis leads to increased government
action
Increased public support
Groups


Influence of a small number of a group
on government policy
Change in society can be reflected in
change in groups
Institutions

Greater effects on policies from courts,
bureaucracy, Senate
Media

Cause and effect of placing items before
the Senate
Making a Decision
Costs and Benefits of
Proposed Policy



(cost –benefit analysis)
Perception of costs (any
burden that a group must
bear) and benefits (any
satisfaction that a group
will enjoy)
Legitimacy of benefits
Changing beneficiaries
change view of
deserving/undeserving
Making a Decision, cont.
Are benefits wide spread
throughout society?




Widely–distributed costs: income tax,
Social Security tax, farm subsidies
Narrowly-concentrated costs: factory
air emission standards, higher capital
gains taxes
Widely-distributed benefits: Social
Security benefits, national security,
clean air, federal highways
Narrowly-concentrated benefits: farm
subsidies, tariffs, exemption from antitrust legislation
Majoritarian Politics
Widely Distributed Benefits,
Widely Distributed Costs
Majoritarian issues make
appeals to large blocs of voters
Controversial due to costs not
necessarily to ideology
Not dominated by interest
groups as most people benefit
Can easily become ‘sacred
cow’ (Social Security)
Interest Group Politics
Narrowly Concentrated
Benefits, Narrowly
Concentrated Costs
Tend to be fought out
by organized interest
groups
the 2 sides ‘pitted’
against each other
Client Politics
Concentrated Benefits, Distributed
Costs
Recipient group has motivation to
organize
“Pork barrel” politics: projects of
special interest attached to other
legislation
“Logrolling” attachments of many
pork barrel projects together
Cost payers are often unaware of
paying for benefit of a few
Entrepreneurial Politics
Distributed Benefits,
Concentrated Costs
Safety/environmental
policies
Policy entrepreneurs:
pull together legislative
majority on small interest
issues
Small group of payees
often resent position
The Case of Business
Rules imposed by government to
achieve a desired goal
Relationship between wealth and
power





Can be used to buy influence
Politicians and business leaders have
similar class and thus similar beliefs
Politicians need to listen to corporations
to induce them to keep investments and
thus the economy growing
Manipulation of agencies (Reagan, Papa
Bush understaffing FTC and Antitrust
Division)
Explosion of corporate mergers-business
claims that with strong international
competition, must consolidate in order to
compete in the marketplace
The Case of Business, cont.
Legislation can be a threat to
business

Policies in exchange for votes
Majoritarian Politics

Anti-trust legislation
Interest-Group Politics

Conflicts and demands can
extend pass legislation
Client Politics


Agencies created to meet
needs of small group
Price-supports created
The Case of Business, cont.
Entrepreneurial Politics



Dramatization of an issue
create public outcry
Clever use of media can heal
spread the issue
Effectiveness of policies
Impost specific standards with
strict timetables
Regulate many different – do not
confront a single, unified
opponent
“public interest” lobby
Sympathetic allies in the media
Groups can use federal courts for
pressure on regulatory agencies
The Case of Business, cont.
Economic Regulation





Government control of
behavior of business in
marketplace
Interstate Commerce Act, 1887
Sherman Antitrust Act, 1890
Federal Trade Commission,
1914
Stock Market Regulations
Social Regulation


Government controls to correct
ill side effects of capitalism
Worker safety regulations,
environmental, child labor laws
Perceptions, Beliefs, Interests, and
Values
Arguments in favor of
regulation





Prevents unhealthy monopolies
and oligopolies as existed in
the Industrial Revolution
Protects consumers from
unsafe and unhealthy products
Protects consumers from
unsafe practices
Protects people from unsafe
working conditions
Protects those who lack strong
voice in government
Arguments against regulation





Not needed-market forces will
compel businesses to work for
the benefit of consumers
Regulation is inefficient
Regulation kills jobs
Regulation increases prices
Regulations have become
increasingly unreasonable
Deregulation: Cutting back on
Government Regulation
Airlines


Civil Aeronautics Board
controlled rates and fares
before 1978
Congressional legislation
in 1978 led to phasing out
of CAB and allowed
airlines to set rates/fares
Some airlines bankrupt
Some smaller cities lost
service (unprofitable)
Some concern that corners
cut (safety/service)
More people traveling than
ever
Deregulation: Cutting back on
Government Regulation
Banking and Savings
Loans



Regulation had controlled
interest rates, types of
financial activities that banks
(S&Ls) could engage in
FDIC and FSLIC
government insurance
programs
Since 1980s have
deregulated; several
collapses that government
had to cover costs of (FDIC,
etc.)
Deregulation: Cutting back on
Government Regulation
Arguments in Favor of
Deregulation


Lower prices for
consumers due to
increased competition
Produces more
efficiency
Arguments against
Deregulation



Endangers public
safety and health
(FDA, airlines, etc.)
Cutthroat competition
leads to more
bankruptcy
States step up with
regulation which
makes business more
complicated due to
varying regulations
Economic Policy
Economic Health
Voting patterns and economic
conditions are tied together at national
level
What politicians try to do




Temptation for short-term economic goals
in order to gain votes
Government uses money to influence
elections
Government doesn’t always know how to
produce economic outcomes and goals
Economic choices can reflect partisan
ideology
Democrats seem to worry more about
unemployment
Republicans seem to worry more about
inflation
Economic Theories and Political
Needs
Monetarism: inflation is when too much money
chases too few goods; recession occurs when not
enough money – government often tries policies
that make matter worse. Government needs to
have a steady increase in the money supply
(Friedman)
Keynesianism: economy based on spending –
government needs to artificially stimulate economy
(when necessary); Great Depression
Planning: government should plan some part of
national economy (ie. controlling prices and wages
–Galbraith)
Economic Theories and Political
Needs, cont.
Supply-side Tax Cuts: less government
interference, more incentive for money to
work down to workers; companies cut costs
(Laffer, Roberts)
Ideology and Theory



All theories have political consequences
Conservatives tend toward monetarism over
supply side
Liberals tend toward Keynesian
Reaganomics: monetarism, supply-side tax
cuts, domestic budget cutting
The Machinery of Economic Policy
Making
President faces organizations in economic
matters

Council of Economic Advisors (CEA)
Part of troika
Established 1946
Impartial group of experts responsible for forecasting
economic trends
Advocate of professional economist

Office of Management and Budget (OMB)
Part of troika
Established 1921
Made part of the executive office, 1939
Renamed in 1970; originally Bureau of the Budget
Prepare estimates of what will be spent by Federal
Agencies
Legislative proposals of agencies are in line with
President’s wishes
The Machinery of Economic Policy
Making, cont.
Fiscal Policies – taxing
and spending
considerations



Conducted by Congress
and the President
Overseen by Treasury
Department
Budget Matters
The Machinery of Economic Policy
Making, cont.
Monetary Policies –
regulation of money supply


Federal Reserve Board
regulates (1913)
Buying and selling
government securities
Regulating money supply



Reserve requirements
Discount interest rates
Adjusting discount Interest
Rates
Congress
Spending Money
Besides economic health,
influence from voters and
interest groups

Voters continually want lower
taxes; lower government
spending – but increased
spending on government
programs
Where it goes (roughly)




Direct benefit payments to
individuals: 45%
National defense: 15%
Interest Payments: 14%
Grants to state and local
governments: 15%
Spending Money, cont.
Entitlements



Automatically spent
(without annual review)
Social Security, Medicare,
federal pensions, debt,
etc.
Account for 2/3 of federal
budget – can we eliminate
them?
The Budget Process
Executive Branch



Agencies prepare estimates of
budget needs and present to OMB,
account is typically based upon
previous year plus inflation
OMB reviews and makes
recommendations to the President
President reviews OMB
recommendations Troika
Chairman of the Council of
Economic Advisors (CEA)
Director of OMB
Secretary of the Treasury

President submits budget to
Congress
The Budget Process, cont.
Congress





CBO created as part of
Congressional Budget Act of
1974
CBO provides an independent
analysis of President’s budget
(check on OMB)
Roles of Budget, Ways and
Means, and Appropriations
Committee
Input and lobbying from
agencies
Majority vote needed in both
houses
The Budget Process, cont.
Political Influences




Political party differences
Interest Group/PAC influence
Iron Triangles
Public Opinion
Back to the President


Sign or veto entire bill
(budget)
Congress can override veto
with 2/3 vote from both
houses
The Budget Process, cont.
Deficit Spending




Budget deficit: incurred when
government expenditures exceed
income during a one year period
National debt accumulation of past
budget deficits
Current debt ~$9 trillion
(9,000,000,000,000)
Role of Balanced Budget
Amendment
Some believe Congress should not
overspend
Some believe it would decrease
ability to deal with economic crisis
(ie. Great Depression, inflation)
Levying Taxes
Goal for taxes




Burden rather low
All pay something
Progressive
1986: Tax Reform Act – closed some
loopholes
Rise of the Income Tax


First peacetime income tax was struck down
by the Supreme Court as being
unconstitutional
16th Amendment: 1913, income taxes are now
constitutional
Initially, only a small number of high-income
people paid taxes
Taxation of WWII did not end after War


Majoritarian Politics could set in and voters
could vote for politicians who would only tax
the wealthy
Loop-hole interest groups (client politics)
Levying Taxes, cont.
The Politics of Tax Reform




Majoritarian politics resurfaced in demand
for fairness
Loop-holes attacked as tax expenditures;
subsidies to particular groups
Some see lower tax rates as key to spurring
economic growth
Politically volatile (both Bushes had tax cuts)
Rough Percentages



Individual income taxes (progressive taxes)
~ 45% of federal revenue
Social insurance taxes (regressive taxes)
~36% of federal revenue (BUT is supposed
to be in trust fund)
Borrowing ~20% of federal revenue
Red = States with no income tax
Chapter 17: Social Welfare
Overview of Welfare Politics in the
United States
Who Benefits?




Americans view question as
who deserves to benefit
Change in view of deserving
and undeserving poor
What is each person’s ‘fair
share’ of national income
Many prefer to offer ‘services’
rather than money
Establishment of US welfare
state compared to other
countries
Overview of Welfare Politics in the
United States, cont.
Welfare as a reflection of
federalism



Reinterpretation of the
Constitution led to increased
welfare (1930s)
State could run programs if
desired (most had some)
Many programs being given
back to states
Ability to experiment
Reduces federal bureaucracy
grants
The Four Laws in Brief
1. Social Security Act of 1935
1.
2.
Roosevelt wanted to be reelected, took concept from
Huey Long
Plan met popular demands
within the framework of
popular beliefs and
constitutional understandings
1. Insurance program for the
unemployed and elderly to which
workers could contribute
2. Assistance program for the blind,
dependent children, elderly
3. Federal government to use taxing
powers, states to administer
The Four Laws in Brief
2. Economic Opportunity Act of 1964
1.
Provided services
1.
2.
3.
4.
5.
Job Corps
Literacy Programs
Youth Corps
Work-study program for college students
Community Action Program (CAP)
3. Medicare Act of 1964
1.
2.
3.
Only for those eligible for Social
Security
Cover hospital expenses, not doctors
bills
Congress changed the original bill to
include Medicaid added for the poor,
and payment of doctors bills for
Medicare
The Four Laws in Brief
4. Family Assistance Plan of 1969
1.
2.
3.
4.
Assistance to families with
Dependent Children (AFDC) became
controversial as the number of
welfare mothers grow rapidly in the
1960s
Many arguments and ideas about the
pros/cons of AFDC
Nixon pushed Family Assistance
Plan (FAP) which would have
drastically changed welfare concepts
– would have established a national
income which nobody would be
allowed to fall
White the House passed it, the
Senate did not – killing it
Cash


Government Subsidies
AFDC
Farmer Subsidies
Tax Incentives



Home mortgage
Tariffs
Tax credits
Credit Subsidies


Student loans
VET loans
Benefit-in-kind subsidies



Food stamps
Medicaid
Medicare
Purpose of subsidies is often to
encourage behavior: most subsidies go
to people in the top half of the nation’s
income distribution and to the corps
Two Kinds of Welfare Politics
1. Majoritarian Politics
1.
2.
Costs and benefits widely distributed, beneficiaries believe
that their benefits will exceed their costs and if political
elites believe that it is legitimate
Social Security and Medicare are NOT Insurance programs
– what recipients receive far outweighs what they
contributed
1. Congress has had to raise taxes to cover costs
2. Americans are living longer
3. Cost of health care has drastically risen
3.
Majoritarian programs threaten massive budget deficits
1. Social Security: in 1935, 42 workers to 1 recipient
by 2020, only 2 workers to 1 recipient (now ~3:1)
2. Client Politics
1.
2.
Costs widely distributed, benefits concentrated (AFDC)
Many stress these welfare programs are examples of social
skills, yet most subsidies/programs benefit more Americans
Toward a New Welfare Politics
Costs



How to continue programs when costs and
recipients have increased
Looking to continue Social Security
Congress has increased regulations and
restrictions on Medicare charges
Legitimacy




If Congress wants to keep building
programs, they have to develop the
“legitimacy” of the recipients
Rework programs to meet public
expectations
Family Support Act of 1988 requires states
to establish paternity and to collect childsupport payments and to enroll parents in
job-training and placement programs
Increased emphasis on services (ie. Head
Start)
Toward a New Welfare Politics,
cont.
The Family Issue

Repackaging
recipients and reasons
The Homeless

Disagreement
regarding numbers
and causes, therefore
ineffectual policies
Toward a New Welfare Politics,
cont.
Political Issue

Both parties emphasize reform
Clinton: end welfare as we know it
Contract with America, 1996:
Republican led
Accomplishments:





Ended federal entitlement status
of various programs
Limited welfare payments to no
more than 5 years
Food stamp recipients must work
Prohibited aliens (legal or illegal)
from receiving various benefits
Teen mothers must live with
parents and attend school to
receive benefits
Question of Social Net
Chapter 18: Civil Liberties
Quick note:
Civil Liberties are the basic freedoms such
as speech and religion
Civil Rights are protections against
discriminatory treatment.
The Politics of Civil Liberties
Bill of Rights as
important limitation on
popular rule
Non-citizens may not
vote, serve on juries,
stay in US
unconditionally, or
hold certain jobs
Civil Liberties and Rights come
from
Constitution


Bill of Rights
Amendments
Legislation


Civil Rights Act, 1964,
1968
Voting Rights Act, 1965
Court Decisions


Brown vs. Board of
Education
Roe v. Wade
How Liberties Become Issues
Rights in Conflict



Same pattern as interest-group politics
Not absolute; infringement upon the rights of others
Balancing test: courts balance individual rights and
liberties with society’s need for order/stability
Entrepreneurial Politics

Arouse the public to take action against the rights and
liberties claimed by political or religious dissidents
Principles that are in conflict with one another
(cultural conflicts)


Americanism has traditional sense of values and habits
of Anglo-Saxon protestants
Immigration brings different cultures/values
Freedom of Speech
Free speech is of utmost
importance (especially
political speech)
Preferred position is for
government to virtually
never restrict Freedom
Speech and National Security
Sedition Acts


Historically could be mere criticism of government
Smith Act, 1940: advocate overthrow of government
Question of Federal and State jurisdictions
Clear and Present Danger


Schenck v. US, 1919
Eminent threat to society
Prior restraint-blocking before given
What is speech?
Court has held that there are three
forms of speaking and writing that are
not covered

Libel (written) – defames the character of
another personal
Slander (oral libel)
Must be malicious


Obscenity – difficulty establishing what is
obscene
Symbolic Speech
Connected between speech and illegal
action
Somewhere between speech and action;
generally protected
Texas v. Johnson, 1989 – flag burning as a
protected form of speech
US v. O’Brien, 1968 – draft card burning
not a protected form of speech
Who is a Person?
Are corporations,
interest group and
children covered as
well?

Yes!
Students are under
authority of schools –
cannot impede the
educational mission of
the school

But students still have
some rights….
Freedom of Religion
Congress shall make no
law prohibiting the free
exercise of religion


Can observe whatever
religion you want as long
as nobody is harmed
Cannot violate laws
Freedom of Religion, cont.
Congress shall make no law
respecting an establishment of
religion-establishment clause

Supreme Court has interpreted as a
‘wall’ between church and state
(Jefferson first said)
First such interpretation in 1947
Controversial rulings/decisions



Original intent was that there would be
no state-sponsored religion
“Accomodationist View” government
should allow a certain degree of
church/state blending
“Separationist View” no blending of
church and state
Freedom of Religion, cont.
Lemon v. Kurtzmanestablished 3 part test to
determine violation of
establishment clause



Nonsecular (religious)
purpose
Advances or inhibits
religion
Excessive entanglement
with government
Freedom of Religion, cont.
Key rulings (‘school’ refers to public,
not private schools)






Engle v. Vitale, 1962 – no state
sponsored recited prayer in school
Abbington v. Schemp, 1963 – no
devotional bible reading in school
Moment of silence in school is
constitutional
Epperson v. Arkansas, 1968 – states
may not prohibit the teaching of
evolution
States may not require the posting of
the 10 commandments in schools
Religious release time for students is
constitutional
Freedom of Religion, cont.
Practices that have been restricted




Polygamy (Reynolds v. US)
Not vaccinating children of Christian
Scientists before entering school
Not paying social security taxes
(Amish)
Wearing a Jewish skullcap in the
military
Practices that have been permitted




Not saluting flag in school (Jehovah’s
Witness case)
Covering up New Hampshire state
motto (Live Free or Die) on car license
plate (Jehovah’s Witness plate)
Not sending children to school after 8th
grade (Amish)
Animal sacrifice (Santeria case)
Crime and Due Process
The Exclusionary Rule


Evidence gathered outside of
Constitution is invalid
Applies mainly to the 4th and 5th
amendments
Search and Seizure


Search warrant – probable cause;
must be specific
Already being lawfully arrested
You
Things in plain view
Things or places under your
immediate control
Testing for Drugs and Aids


Drug testing more established
Fear of sexual harassment with AIDS
testing (primary target: homosexuals)
Crime and Due Process, cont.
Rights of Accused

Counsel
Gideon v. Wainwright



States must provide legal help for those who
cannot afford it
Speedy and public Trial
Trial by jury
Majority of cases settled through plea bargaining

Miranda Warning – reminder of silence and
counsel
Miranda v. Arizona

Although the confessed and the victim identified
him (rape-kidnapping) conviction was overthrown
because he was not informed that he could
remain silent
The Exclusionary Rule



Illegally evidence may not be used in court
Established in Mapp v. Ohio, 1961
Critics claim it lets criminals ‘off the hook’
Effects of Federalism
Modifying effect of the
14th Amendment

Due process and equal
protection clauses applied
to states
Assembly
Petition
Religion
Search and seizure
Self-incrimination
Double jeopardy
Right to counsel
Right to bring/confront
witnesses
Protection against
cruel/unusual punishment
Effects of Federalism, cont.
Standards for nationalization of 14th Amendment


All provisions of the Bill of Rights, EXCEPT 2,3,7, and
10 Amendments and grand jury of 5 have been
federalized
The Palko Test (from Palko v. Connecticut)
any freedom/right that is essential to liberty must be upheld
by states
No exhaustive listing of liberties/rights because
of 9th Amendment

Privacy
Griswold v. Connecticut, 1965
Life, Liberty, Property and Due
Process
Equal Protection Court
Cases: Brown, Baker v. Carr,
UC vs. Bakke
Property rights versus public
welfare



States may impose limits on
property rights
Police powers to protect public
welfare (meat inspection, child
labor laws, etc.)
States may exercise right of
eminent domain (take private
property for public good)
Supreme Court has now ruled
that local governments may
take private property for
PRIVATE developments
Life, Liberty, Property and Due
Process, cont.
Due process of law – 5th and 14th
Amendments prohibit government from
denying life, liberty, or property without
due process of law. Two types of due
process:

Procedural – must be fair use procedures
Observe Bill of Rights
Provide reasonable notice
Provide chance to be heard

Substantive
The laws that allow government to take
must be fair


Distinction: a law prohibits possession of
narcotics (substantive) and police must
generally obtain a warrant before
conducting a search (procedural)
Cases: Mapp, Gideon, Miranda
Civil Rights – Chapter 19
Protection against Discrimination
The Black Predicament
Historical Restriction of Rights



Perceived costs of granting rights
Interest group component of Majoritarian politics
16% of the population
Campaign in the Courts

14th Amendment – due process, equal protection
Plessy v. Ferguson, 1896


Separate but equal
Jim Crow Laws
Brown v. Board of Education, 1954

Separate is inherently unequal
Implementation of class action suit
Role of social science in constitutional decision
Desegregation versus integration
Desegregation versus integration
Northern schools reflected
living patterns/social
divisions
Court rejection of student
preference of school
Swann v. CMS, 1976
established that violation
must show intent to
segregate and that
remedies are not ‘choice’
Campaign by Congress and
President
Civil War Amendments: 13, 14, 15 to protect blacks
from state government
Change in Congress reflected change in public
opinion


Civil Rights movement grew in 1950s and 1960s as
violent actions of white separatists caused moral reaction
Assassination of Kennedy helped build support for
policies of Johnson
Civil Rights Act of 1964 – banned discrimination in
places of public accommodation (upheld Heart of
Atlanta Motel v. US) based upon Congress’ power
to regulate interstate commerce
Civil Rights Act of 1968 –banned housing
discrimination
Barriers to Voting
15th Amendment banned voting discrimination on
basis of race




States imposed white primaries (unconstitutional
1944)
States imposed poll tax (banned by 24th
Amendment)
States imposed literacy test (banned by Voting
Rights Act)
States imposed grandfather clause (declared
unconstitutional)
Voting Rights Act of 1965






Applied to areas with history of voting discrimination
Suspend literacy tests
Empowered federal officials to register voters and
then ensure voting (ie with federal marshals)
Empowered federal officials to count ballots
Prohibited states from changing election procedures
without permission from federal government
Led to huge increase in black turnout and increase
in black elected officials
Number of Black Southern Legislators, 1868-1900 and 1960-1992
Women and Equal Rights
Same goal, different arguments


Seneca Falls Convention, 1848
Struggle for suffrage, 19th Amendment, 1920
Many early feminists were also abolitionists
Equal Rights Amendment





Many thought would pass quickly in 1972
Role of NOW
Congress extended time
Became hugely controversial – draft, legal
protections, etc.
Not passed
Abortion
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State decision until 1973
Roe v. Wade, 1973
Supreme Court decided that the 5th and 14th
Amendments imply a right to privacy
(Griswold v. Connecticut)
Some limitations
Controversy over when life begins
Women and Equal Rights, cont.
Other legal issues
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Title VII of Civil Rights Act prohibited
employment discrimination on the basis of
sex
Title IX of Education Act of 1972 prohibited
gender discrimination in federally
subsidized education programs, including
athletics
Women and the Economy
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Economic status seen as important as
legal status
Legislation
Government funded day care
Child support enforcement
Pregnancy leave
Comparable worth
Affirmative Action
Burdens of racism and sexism can be overcome
only by taking race or sex into account in designing
remedies
Quotas or opportunities
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Courts review quota systems – compelling justifications
Quotas cant be used without showing rules are needed
to correct past of present pattern of discrimination
Must identify the actual practices that had discriminatory
impact
Hiring and firing are two separate issues
Compensatory action – helping disadvantaged
people ‘catch up’
Preferential treatment – giving preference
Reverse discrimination
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UC Regents v. Bakke, 1978: states may allow race to be
taken into account as ONE factor for admission decisions