Public Policy Analysis Exam 2

What are the 5 primary goals of economic policy?

Economic growth, low levels of unemployment, low levels of inflation, positive balance of trade, and managing deficits & debts

What is economic growth and how is it measured

Economic growth is the increase in the production of goods and services measured by rising Gross Domestic Product (GDP)

What is one benefit of economic growth related to government revenue?

Increase government tax revenue

How does economic growth affect redistributive policy?

Redistributive policy becomes acceptable as personal wealth rises

What does economic growth allow for in terms of government programs?

It allows for government programs and benefits

What are the consequences of low economic growth?

Indicates potential recession and forces budge cuts & redistribution often causing political conflict

What are low levels of unemployment important in economic policy?

Jobs reduce reliance on government programs & high unemployment decreases tax revenue and increase spending on entitlement programs like

Which problems arise from low unemployment?

Low unemployment can cause labor shortages, preventing businesses from meeting demands.

Which problems arise from high unemployment?

High unemployment reduces government revenue and increases entitlement spending.

What is inflation and how is it measured?

Inflation is the increase in the cost of goods and services measured using the Consumer Price Index (CPI).

Why is a positive balance of trade of a goal of economic policy?

A positive balance occurs when exports exceed imports

When does managing deficits and debt entail?

Maintaining fiscal responsibility and reduce interest burdens.

What is fiscal policy, and who controls it?

Fiscal policy involves taxing and spending controlled by Congress & President

What tools are used in fiscal policy during recession?

Tax cuts, tax rebates, and increased spending

What tools are used in fiscal policy when economics is overheated?

Tax increase to slow

What is Monetary Policy, and who controls it?

Adjusting the money supply to stabalize the economy controlled by the Federal Reserve

How does the Fed control inflation using monetary policy?

The Fed decreases the money supply, raising interest rates to reduce spending and borrowing

What are the main differences between fiscal and monetary policies?

FP is managed publicly by Congress and the President and involves government spending and taxation. MP is independently controlled by the Fed and deals with money supply adjustments

What tools does the Fed use in an overheated economy (high inflation) which cause reduce disposable income and decrease money supply raising rates and cooling spending?

Sell gov securities, increase bank discount rates, and increase reserve req for banks causing

What tools does the Fed use in a sluggish economy (low growth, high unemployment) where there is increase of disposable income and borrowing and stimulated growth and spending?

Buy gov securities, decrease discount rates, and decrease reserve req for banks

What is corporate welfare at the state/local level?

Tax breaks to attract businesses for job creation

What is corporate welfare at the federal level?

Subsidies and tax incentives (tax expenditures) to promote specific industries

What is the goal of tax policy?

Generate enough revenue to meet government expenditure & analyze efficiency, equity, and feasibility for effective taxation

Regressive Tax

Higher impact on lower income (e.g., sales tax).

Progressive Tax

Higher rates for higher income earners (e.g., federal income tax)

What are Peters' five major characteristics of taxation?

Collectability: Ease of collection.

Fiscal Neutrality: No undue preferences.

Buoyancy: Keeps up with inflation and growth.

Distributive Effects: Impact on various groups.

Visibility: Public perception and acceptance.

Horizontal Equity

Equal taxes for equal incomes

Vertical Equity

Different taxes based on income levels

Why is budgeting incremental?

allows step by step adjustments toward goals and provides flexibility and ensures political feasibility

What are the major steps in the federal budget process?

Assumptions and Planning.

Agency Budget Development.

OMB Budget Review.

Congressional Review.

Budget Execution.

Budget Control.

National Debt

Accumulation of yearly deficits over time

Budget Deficit

When government spending exceeds revenue in a given year

Budget Surplus

government revenue exceeds spending in a given year

What are ways to reduce federal budget deficits?

Increase taxes or cut spending,

Balanced Budget Acts or sequestration (across-the-board cuts), and Stimulus Acts (e.g., ARRA of 2009) to stimulate economic recovery.

What does health care policy aim to influence?

Provision of health care services and public health

which programs are central to US Health care policy?

Medicare and Medicaid

What are the roles of federal and state governments in health care policy?

Federal: Funding and regulation & State: Implementation and oversight.

What are the primary reasons people cannot access medical care?

Lack of insurance, financial barriers, geographic challenges, social and personal factors, and socioeconomic status.

How does rural areas influence access to care?

Limited facilities, reliance on home remedies or local healers

How do urban centers influence access to care?

Overcrowded, underfunded clinics, and hospitals

How do general considerations influence access to care?

Lack of preventative health services in underserved areas

What characterized health care in the early 20th century

Largely private and market-driven, access dependent on economic status.

What major programs were introduced in 1965

Medicare for seniors and individuals with disabilities & Medicaid for low-income individuals and families.

How did health care policy change in 2010

Affordable Care Act (ACA): Expanded coverage, introduced subsidies, and regulated insurance practices.

What are the current challenges in health care policy

Rising costs, access inequalities, and ongoing political debates.

What are the primary features of the ACA

Expanded Coverage: Medicaid eligibility and subsidies for private insurance, Insurance Regulations: Mandates and consumer protections, & Cost Control: Efforts to reduce and slow health care costs.

What challenges does the ACA face

Political contention, ongoing legal challenges, and the repeal of the individual mandate (2017).

What are the public and private elements of the U.S. health care system

Public programs: Medicare and Medicaid & Private programs: Employer-sponsored and individual insurance plans.

Why is health care considered a "merit good"

The belief that everyone is entitled to health care.

What challenges does the hybrid system face

Increasing demand due to an aging population and rising costs.

What are the health risks of being uninsured

Higher risk of serious health issues and premature death.

How does being uninsured affect care access

Delayed or inadequate care, poor chronic condition management, and lack of preventative care.

What are the financial impacts of being uninsured

High costs lead to unaffordable care and overwhelming financial burdens.

What populations do Medicaid and Medicare serve

Medicare: Individuals 65+ and certain disabilities. Medicaid: Low-income families, children, and people with disabilities.

How are these programs administered

Medicare: Federally managed & Medicaid: Joint federal and state program.

How do coverage and funding differ

Medicare: Partial expenses, federally funded & Medicaid: Broader coverage, joint funding

What strategies can reduce health care costs

Passing costs to consumers, Setting up personal health accounts, Managing diseases more effectively, and Encouraging preventative care.

What are the benefits of preventative care

Reduces long-term costs, Improves quality of life, and Increases survival rates through early detection

What additional measures can lower costs

Community health programs & Vaccination initiatives

What were the early foundations of school choice?

Choice was based on residential location or private schooling

How did the Civil Rights Era shape school choice?

Brown v. Board of Education (1954) mandated integration.

Vouchers were introduced to address inequalities between inner-city and other schools.

What developments occurred in the 1970s-1980s

Experimental programs like magnet schools with themed curricula emerged.

How did school choice expand in the 1990s and beyond

Charter schools gained prominence as autonomous public schools & Full educational choice programs, private scholarships, and tax credit programs were introduced.

What are examples of limited educational choice programs

Magnet Schools: Themed curricula, Alternative Learning Centers: For at-risk students, Open Enrollment: Intra- and inter-district public school options

What are examples of full educational choice programs

Vouchers: Government payments for private education, Private Scholarships: Tuition assistance, often for low-income families, & Tax Credit Programs: Subsidies for educational expenses.

What are charter schools, and how do they differ from traditional public schools

Public schools with performance-based contracts & More autonomy in exchange for meeting goals.

What is the role of peer review in policy studies

Ensures research quality and credibility and Identifies biases or flaws in studies

Why is replication important

Verifies reliability and reproducibility of findings & Strengthens confidence in policy recommendations

How do these factors impact policy evaluation

Peer-reviewed studies are more reliable & Replication confirms or challenges initial findings

What does research say about student achievement

Findings are inconclusive, with no consistent positive or negative impact & Many studies lack peer review.

How does school choice impact racial/ethnic stratification

Targeted programs like low-income vouchers increase racial integration & Less regulated programs may increase stratification.

What is the impact of school choice on parental satisfaction

Many peer-reviewed studies show higher parental satisfaction.

What problem did the Clery Act address

Underreporting of campus crime statistics & Only 4% of colleges reported crime before the act.

What requirements does the Clery Act impose

Colleges must report crime statistics and publish annual security reports. Public crime logs and timely warnings are required.

What are barriers to reporting campus crimes

Campus culture (self-handling issues), Fear of retaliation, and Lack of understanding about reporting procedures.

What challenges exist in measuring campus crime

Reported incidents and arrests may not reflect the true crime rate due to underreporting.

Why is property tax funding problematic

Revenues do not keep pace with inflationary costs & Increased costs or programs often outstrip available resources.

How does property tax funding create inequities

Varies significantly among and within states & Wealthier districts have more resources, leading to disparities.

What are some reasons for lower teacher quality

Lack of competitive pay, Inadequate training and professional development, and Challenges in retaining highly skilled teachers.

What reforms have been introduced to address teacher quality

Merit Pay: Performance-based compensation & Competency Testing: Assessing teacher skills.

What challenges are associated with these reforms

Merit pay may create competition rather than collaboration & Testing may not fully capture teaching effectiveness.

What are the arguments for affirmative action

Corrects past inequalities & Improves college access for underrepresented groups.

What are the arguments against affirmative action

Critics argue it prioritizes background over merit, Can lead to stigma and backlash for beneficiaries, and Faces legal and political challenges.

What additional considerations affect affirmative action

Bias against beneficiaries, Uneven implementation across states, and Frequent legal disputes.

What is the central dilemma in the Minto-Brown case study

The conflict between agricultural practices (pesticide use) and environmental preservation & Balancing farmers' economic needs with concerns for public health and environmental degradation.

Who are the stakeholders in the Minto-Brown case, and what are their positions

Ken Iverson (Park Tenant Farmer): Represents agriculture, uses pesticides, Visitor and Audubon Society: Advocate for environmental protection and pesticide regulation, Salem Parks Department and City of Salem: Manage park policies, R.G. Anderson-Wyckoff (Salem Parks Advisory Board President): Favored an expedient resolution, Oregon Tilth: Advocates for organic farming, Oregon Agricultural Chemical Association & Oregonians for Food and Shelter: Oppose excessive regulation of pesticides, and ParkVisitors/Public:Divided opinions on farming and environmental priorities.

What is a favored policy option regarding pesticide use

Incremental regulation or transitioning to organic farming methods.

What ambiguities exist in environmental law

Environmental policies are broad and challenging to define, leading to vague applications. Differing statuses of statutes and no consolidated federal policy.

What conflicts arise in implementing environmental laws

Shift of responsibility from federal to state governments, States with fewer resources struggle to implement policies equitably, and Many environmental issues cross state lines, complicating enforcement.

How has environmental policy transitioned from consensus to conflict

Early policies focused on consensus-building. Increasingly contentious debates over state vs. federal responsibilities and economic impacts.

What is sustainable development

Meeting present needs without compromising future generations. Compatible with natural environmental systems and societal goals.

What were the early milestones in U.S. environmental policy

1892: Creation of Yellowstone National Park & 1964: Wilderness Act.

What major modern policies have shaped environmental protection

National Environmental Policy Act (NEPA): Requires environmental impact assessments, Environmental Protection Statutes and the EPA: Enforces environmental laws, and Inflation Reduction Act of 2022: Focused on reducing emissions and promoting clean energy.

How has environmental policy transitioned over time

Early focus on resource protection and conservation & Modern focus on pollution control and climate change, with growing political conflict.

What is the National Environmental Policy Act (NEPA)

Requires federal agencies to assess environmental impacts of major actions. Promotes transparency and public involvement in environmental decision-making.

What is the role of the Environmental Protection Agency (EPA)

Federal agency tasked with enforcing environmental statutes, monitoring pollution, and ensuring compliance.

What are other major federal environmental laws

Wilderness Act (1964): Protects designated wilderness areas, Energy Policy Act (1992): Encourages energy conservation and renewables, & Inflation Reduction Act (2022): Promotes clean energy and emission reductions

What is command and control in environmental policy

Regulations that set specific limits and standards for pollution & Relies on enforcement by regulatory agencies like the EPA.

What are alternatives to command and control

Market-Based Mechanisms: Cap-and-Trade: Allows trading of emission credits. Carbon Taxes: Incentivize reductions by making pollution costly. Voluntary Programs: Encourage businesses to adopt eco-friendly practices. Education and Awareness Campaigns: Promote sustainable behavior.

How has energy consumption changed over time

Despite rising GDP, population, and vehicle miles traveled, energy consumption has stabilized. Pollution emissions have decreased due to cleaner technologies.