Public Policy

public policy

A statement by government—at whatever level —of what it intends to do about a policy problem

Features of public policy

Public policy refers to the laws rules and government actions created to address public problems and guide how society functions

Inferred/Implied Policy

Policy is inferred from action

Negative Policy

A government policy where the government chooses not to take action or not to regulate a certain area such as not intervening in internet speech

Symbolic policy

A policy meant mainly to show support or express values without leading to significant government action or change such as anti bullying laws with little enforcement

Law Of Unintended Consequences

Policy sometimes has effects that policy makers do not expect

Policy as allocation of goods

Some people think about policy as tools to determine who gets what when where and how

Policy as a result of political process

Public policy is shaped by competing values and beliefs among various actors resulting in compromises that aim to achieve desired outcomes while balancing priorities tradeoffs and impacts on different groups

Policy as behavior change

Policy is about getting people to have desired ways

Policy as outcomes

Policy is not just what we decide and design but what gets put into practice

Public vs policy problems

Policy problems are “Artificial” because “problems” are only problems because we are imagining a certain desired outcome that we have decided is necessary or important

Governments act

Government action policy is needed when markets do not allocate goods efficiently

basic assumptions of a well functioning market

Complete and perfect information all costs and benefits reflected in prices clearly defined property rights sincere preferences and self interest perfect competition many buyers and sellers and no manipulation or market power imbalances

What happens when market assumptions are NOT met

Market failure

link between public goods and market failure

Public goods create a free rider problem leading to underproduction or undersupply

market failure associated with common pool goods

Overuse of resources leading to the tragedy of the commons

externalities in market failure

Costs or benefits not included in market prices can be positive or negative externalities

information asymmetry

When one party has more or better information than the other leading to inefficient outcomes

imperfect competition cause market failure

Monopolies or firms with market power restrict competition and create inefficiency due to barriers to entry

Excludability

Preventing usage

Rivalry

Does one person using it reduce availability for others

Private goods

excludable and rivalrous meaning you can stop others from using them and one persons use reduces whats left like food or clothes

Club Goods

Excludable but non rivalrous meaning access can be restricted but one persons use doesnt really reduce others enjoyment like streaming services or gyms

Common Pool Resources

non excludable but rivalrous meaning its hard to stop people from using them but overuse reduces availability like fish in the ocean or forests

Public Goods

Non excludable and non rivalrous meaning everyone can use them and one persons use doesnt reduce others access like streetlights or national defense

Externalities

Price of goods fails to reflect all of the costs and benefits to society Parties outside of an exchange are affected by the exchange

Positive externality

Occurs when a third party receives a benefit e g education improving society

negative externality

Occurs when a third party bears a cost e g pollution harming public health

Information assymetry

Buyers and sellers in particular buyers might not have perfect information to help them make exchanges that maximize their self interest It causes market failures which lead to inefficient resource allocation consumer harm and inequitable outcomes

Imperfect Competition

When there are a multitude of sellers who have a small share in the market and sell similar products Entrance to the market is is rarely free existing firms resist competition Skills and training are needed to truly compete and existence of natural monopolies

Collective Action Problem

Government action policy is needed when individuals fail to work together for the common good Self interested action produces outcomes that are not good for the collective

Cooperation

Without coordination individuals may fail to work together to provide shared benefits so policy can align incentives and encourage collective action

Free rider problem

The free rider problem leads people to avoid paying for public goods they can still use causing underprovision unless government compels contribution

Tragedy of the commons

When shared resources lack clear ownership or limits individuals overuse them for personal gain so policy intervention is needed to regulate access and prevent depletion

Redistribution

Public policy is needed because markets may be efficient but not always fair

Public welfare public health

Public policy is needed because we need to maintain a minimum level of human thriving

Protecting vulnerable populations

Policy is sometimes needed to protect the most vulnerable

Equality of opportunity

Public policy is needed to ensure equality of opportunity

Paternalism

Public policy is needed because people do not always behave in ways that maximize their own self interest

Values

Public policy is needed to protect and express our values

Stones paradox

public policy often requires limiting individual liberty in some cases in order to protect the broader community conditions that allow everyone to remain free

What are the different ways to decide what is equitable

Equitable defined either as equality of outcomes or equality of opportunity and balanced against efficiency and liberty depending on political choices

Efficiency main concerns

That equality and redistribution reduce work incentives increase bureaucracy and slow economic growth or whether they can instead support productivity through security and motivation

What is the paradox associated with pursuing liberty in public policy

Liberty is often seen as self sufficiency real freedom also depends on others and government support can increase peoples ability to achieve their goals even as it creates some dependence

What is the main challenge associated with pursuing welfare

The main challenge is the claim that welfare support creates moral hazard and reduces responsibility and productivity though evidence suggests it can also strengthen security trust and social cooperation

Security

Public policy focuses on ensuring people are safe and protected from risks like crime violence and other harms both in reality and in perception

Effectiveness

A policy is considered effective if it actually solves or meaningfully reduces the problem it was designed to address

Feasibiliy

Whether a policy can realistically be implemented given political support resources existing infrastructure knowledge and public trust

political feasibility

Whether there is enough support to pass and implement a policy

economic feasibility

Whether funding is available to support a policy

Technical feasibility

Whether the necessary tools technology or systems exist to implement a policy

administrative feasibility

Whether institutions and organizations can carry out the policy effectively

social feasibility

Whether the public will accept and comply with a policy

Why do policy decisions often involve trade offs

Because improving one goal like equity or security can reduce another like efficiency or liberty

What are some common goals policymakers must balance

Equity efficiency liberty welfare security effectiveness and feasibility

What does it mean that policy goals can be competing

It means they can conflict with each other so increasing one may decrease another

policy trade off

Increasing security may reduce individual liberty increasing equity may reduce efficiency

How do policymakers decide which goals to prioritize

Based on values context and expected consequences

What is efficiency in policy terms

Achieving the greatest output or benefit with the least cost or resources

What is equity in policy terms

Fair distribution of resources and opportunities across a population

What does feasibility refer to in policymaking

Whether a policy can realistically be implemented given political economic or practical constraints

Who are the main actors in the policy process

Interest groups Organized groups of individuals or organizations that come together to advocate for a common cause or policy goal

What do interest groups typically do

They lobby policymakers shape public opinion provide education and conduct research to support policy goals

advocacy coalitions

Looser networks of multiple interest groups and other policy actors that work together toward a shared policy goal

What is an iron triangle or policy monopoly

A stable relationship between government officials bureaucratic agencies and interest groups that work together to maintain control over a policy area and preserve the status quo

What are the three components of an iron triangle

Government officials bureaucratic agencies and interest groups

the main goal of an iron triangle

To maintain influence over a policy area and keep existing policies in place status quo

target population

The group of people whose behavior a policy seeks to change or who receive the benefits and burdens of a policy

social construction of target populations

The idea that policy outcomes are shaped by how society perceives different groups as deserving undeserving and powerful weak

social construction affect policy outcomes

It influences whether groups receive benefits burdens or punishment based on how they are

How can the Supreme Court check Congress and the President

By declaring laws or executive actions unconstitutional through judicial review

Federal Government

Under the US Constitution and its Supremacy Clause it handles national powers like defense foreign policy regulating interstate commerce printing money and immigration

State Government

Guided by the Tenth Amendment it controls statewide matters such as education public safety elections intrastate commerce and health regulations

Local Government

Operating under state authority it manages community level powers like zoning local policing schools utilities and emergency services

shared sovereignty

Power in the United States is divided between the national federal government and state governments and both govern the same people at the same time

enumerated powers

These are powers specifically listed in the Constitution for Congress such as taxing regulating commerce declaring war and controlling currency

Why were enumerated powers created

To give the federal government authority over national issues and avoid the weaknesses of the Articles of Confederation

Concurrent Powers

Powers shared by both the federal and state governments such as taxation borrowing money making laws and running courts

Reserved Powers

Powers that are not given to the federal government and are instead reserved for the states under the 10th Amendment

State Primacy

The principle that states hold any powers not specifically granted to the federal government by the Constitution

Federal Supremacy

The principle that federal laws are the highest authority in the US and override conflicting state laws Supremacy Clause

How do states and local governments share power

States hold overall authority within their borders and delegate certain responsibilities to local governments like schools policing and zoning

Dillons Rule

A principle that local governments only have powers explicitly granted by the state If a power is not listed the local government cannot use it

Dillons Rule Imply About Local Government

Local governments are dependent on state authority and have limited independence

Home Rule

A system where local governments have self governing power granted by a state constitution or charter allowing them to act unless specifically denied

Home Rule Vs Dillons Rule

A system where local governments have self governing power granted by a state constitution or charter allowing them to act unless specifically denied

dual federalism

A system where the national government and state governments each exercise exclusive authority in clearly defined separate spheres of jurisdiction

cooperative federalism

A system where national and state governments share powers and work together to address major issues often blending responsibilities and expanding federal influence through programs like Social Security and the National Labor Relations Act

New Federalism

A political approach promoted by presidents like Nixon and Reagan that aimed to shift power from the federal government back to the states through decentralization and flexible federal funding

fiscal federalism

The system in which federal state and local governments and sometimes nonprofit organizations rely heavily on federal funding distributed through grants and contracts

federal grants and contracts in fiscal federalism

Money provided by the federal government to state local governments or nonprofits to fund programs and services

unfunded mandate

A federal requirement that forces state or local governments to follow national rules or policies without providing enough money to pay for them

Policy tools

how government tries to achieve it and are the mechanisms used to carry that out

revenue raising tax

A tax used by the government to collect money to fund public services infrastructure and social programs it provides stable and predictable revenue and can help redistribute income

excise tax

A tax placed on specific goods or behaviors to discourage them by increasing their cost often used to reduce negative externalities and improve social welfare

progressive tax

A tax where higher income individuals pay a larger share of their income than lower income individuals example US income tax

regressive tax

A tax where lower income individuals pay a larger share of their income than higher income individuals example sales tax or gas tax

tax is progressive or regressive

If the tax takes a larger percentage from higher incomes it is progressive if it takes a larger percentage from lower incomes it is regressive

grant as a subsidy

Money given by the government that does not need to be paid back used to encourage desired behavior or support individuals and organizations

Social cushion

Government support programs that provide financial help to people in need or experiencing hardship to promote well being