Domestic and Welfare Policy

Government:

• the means by which a society organizes itself and allocates authority in order to achieve collective goals

• Among the goals that governments around the world seek to accomplish are economic prosperity, secure national borders, and the safety and well-being of citizen

Public policy :

• the decisions that government makes, and that have effects on society and people’s lives

• “Public policy is the prize of politics” (Hacker and Pierson 2014) – we engage in politics in order to get policy

Policy Outputs and Outcomes:

Policy Output :

• an action performed by government – can be a law, an executive order, allocation of budget…

Policy Outcome :

• an indicator in the world that public policy tries to change – usually for the good, and for the benefit of society and the country (every policy is debatable)

Example: the Illinois legislature passes a law requiring that people wear seat belts in cars:

• Problem: people dying in car accidents

• Output: the law

• Outcome: Fewer deaths by car accidents

Types of Public Policy:

• Domestic and Welfare: public policies that are enacted to address citizens’ needs and improve well-being in fields like healthcare, environment, education, economic support…

There are 3 types of domestic and welfare public policies:

• Distributive

• Redistributive Regulatory

• Foreign policy: how the U.S. deals with other countries or actors

Distributive Policy:

• spending money on things that we think are important for the country and the citizens

• In other words, allocating funds and budgets for original (new) specific programs or projects for the general public good

• “Winners” – those receiving public funding or those who support the policy outcomes being funded

• “Losers” – Taxpayers who disagree with the policy; those who miss out •

• Examples: NASA, building infrastructure, clean energy subsidies…

Redistributive Policy:

Redistributive Policies:

• involve sharing resources, mainly shifting resources from one group to another, in order to reduce inequality and promote social welfare

• The move is usually to take from the rich and give to the poor – through higher taxation and policies targeted at less privileged communities

• “Winners” – those who qualify for benefits

• “Losers” – those who do not qualify for benefits, or those paying higher taxes

• Examples: Food stamps, National School Lunch Program, Cash Aid / Temporary Assistance to Needy Families, Medicare and Medicaid, public housing, unemployment insurance…

• Redistributive policies are controversial as conservatives / people on the economic right and people that are more well-off often criticize them

• There is usually opposition to the policies based on:

• The general idea of the state providing welfare to people (claims on laziness…)

• The type of people that are receiving the benefits The type of benefits that are provided

• Social solidarity is needed for these policies to pass and succeed in helping people

Regulatory Policy:

• Regulatory Policies: seek to sanction bad activities and behavior\

• “Winners” – those who are harmed by the activity

• “Losers” – those who are regulated

• Examples: Environmental regulation, anti-trust and commerce regulation, anti-money laundering, occupational safety, wildlife conservation, title IX requirements for universities…

Policy Analysis:

Policy Analysis:

• the examination and evaluation of the current or future impact of implemented public policies, and the desire to develop efficient plans to achieve public policy outcomes

• In order to implement a policy, or evaluate the effectiveness of current policies, the government draws information from:

  • Inside-government research and data Interest groups

  • Think-tanks Academia Industry

  • The media

  • • All this in order to understand if policies achieved, or will achieve their goals

Policy Change:

• Policy change is mostly driven by problem solving

• If a problem is severe problem , it means that it is more likely to be addressed by policymakers and the government

• This also depends on the information sources availability of : more sources ensure that information will reach policymakers Problem -> information sources -> policymakers

• Democratic countries include more free information sources, so they are better equipped with dealing with problems (free press, protests, petitions, interest group activity…

• Kingdon 1984: Policy has an opportunity to change when three conditions are met: problem is prioritized exist to address it , the potential solutions , and the politics

• After a problem is identified, and solutions are proposed – we just need the political elites to address it and implement the solution

• That’s where we might face a problem especially when there is no agreement or compromise over the solution, or when political polarization is so high

• Window of Opportunity: Political elites might also take advantage of a new/current problem to accomplish other goals

Economic Systems:

• The social redistributive policies of a country determine where it sits on the capitalist-socialist scale

• Countries that promote more pure free market policies have systems capitalist economic who provide little to none social services and basic economic safety to their citizens

• Countries that promote pure planned economic policies have systems socialist economic . They tend to provide vast social services to citizens

• Important to note: no market is 100% free. There has always been a “political economy” where governments regulate the economy, and create the conditions that make economic activity possible (public safety, contract law, taxes…)

• Countries with social democratic economic systems combine both capitalist and socialist elements

• The Nordic Model: refers to the economic system in Nordic/Scandinavian countries (Denmark, Finland, Iceland, Norway, Sweden) which combines capitalism strong welfare state

• Welfare State: and a is a government that provides economic security to its citizens through programs that protect against risks like unemployment, old age, and sickness

• Studies have repeatedly shown that poverty decreases after countries adopt welfare programs and social safety nets

Economic Systems in U.S:

• The U.S. is a capitalist country with a free market competition, private ownership of means of production, and is profit motivated. The U.S. also provides very little social services and social safety nets to its citizens compared to other countries

• Timeline:- 19th-20th century: minimal regulation along with promotion of economy-

• 1930s: capitalism with more regulation of economy and the provision of more social welfare state policies (FDR’s New Deal)-

• 1978-present: Neoliberalism is on the rise – a wish to return to a less regulated economy with minimal services and taxes

• The rich are being prioritized while the poor are getting sidelined As a result, wealth inequality has been rising for years

Other major problems in the U.S.:

• The cost of health care is a huge burden on individuals, employers, and governments, and Republicans are blocking policies aimed at solving this The US pays twice as much per capita for health care as other rich nations

• Demographic trends mean that the U.S. must plan for supporting a larger population of the elderly—but no one is doing that

• Climate change requires fundamental changes in the economy--but no one is making those changes. Not addressing climate change will have a worse impact on poor people

• The U.S. needs better social and welfare programs to address these problems

American Economic System and the Parties:

• The Democratic Party now advocates for policies that would maintain a mixed economy that preserves capitalism, but tempered with progressive taxation, substantial regulation of corporations, programs to reduce inequality, and a more robust set of social welfare programs, including universal health care.

• However, the progressivism of these proposed policies does not reach the level of other countries – even the Dems prefer to lean more towards capitalism in the U.S.

• The Republican Party now advocates for neoliberal policies that move the U.S. closer to the capitalism of the 19th century. This includes cutting taxes on the rich and large corporations, privatizing many government functions, deregulating corporations (consumer protection; labor relations; environmental protections); and cutting the social safety net by repealing the Affordable Care Act and privatizing or eliminating Social Security and Medicare.