AP GOVERNMENT COOKBOOK

AP GOVERNMENTCOOKBOOK

Unit V:

Public Policy.

SYLLABUS - Unit V Description

V. Public Policy-

Public policy is the result of interactions and dynamics among actors, interests, institutions, and processes . The formation of policy agendas, the enactment of public policies by Congress and the president, and the implementation and interpretation of policies by the bureaucracy and the courts are all stages in the policy process with which students should be familiar . Students should also investigate policy networks and issue networks in the domestic and foreign policy areas . The study of these will give students a clear understanding of the impact of federalism, interest groups, parties, and elections on policy processes and policymaking in the federal context . Students should be familiar with major public policies

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Unit V Vocabulary: Public Policy•

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Unit V Vocabulary – Public Policy

Public Policy Overview

Simple Definition: Public policy is a course of action adopted and pursued by a government. (Laws, regulations, philosophies, etc.)

There are TWO main avenues of Policy

Public Policy Notes:

1. Public Policy is created by iron triangles & issue networks. 2. Public Policy is constantly changing and evolving.3. Public Policy is a summative measure of how the government

views a particular topic

Foreign Policy Formation

Top Influences on Foreign Policy:

PresidentState Department, led by Secretary of State

Senate Committee on Foreign AffairsDefense Department led by Secretary of Defense

Foreign Diplomats Foreign Governments

Interest GroupsPublic Opinion

FORMAL TREATIES AND TRADE AGREEMENTS:

Negotiated by the President

and State Diplomats

Passed To The Senate:Ratified by 2/3

EXECUTIVE AGREEMENTS:

Negotiated by the President

and State Diplomats

Signed into law by the President. Similar to Executive Orders. Subject to Judicial Review. Quicker than formal treaties; not as durable.

AGENTS OF FOREIGN POLICY TEND TO BE HIGHLY SPECIALIZED.

Domestic Policy Formation

Top Influences on Domestic Policy:

PresidentBoth Houses of Congress

Interest GroupsFederal BureaucracyState Governments

Public Opinion

HOW DOMESTIC POLICY FORMS

Fiscal Policy Formation

FISCAL POLICY IS A BRANCH OF DOMESTIC POLICY THAT DEALS WITH TAXATION AND FEDERAL SPENDING

TWO TYPES OF FEDERAL SPENDING:

MANDATORY: SPENDING THAT IS DICTATED BY PREVIOUS POLICY DECISIONS. COMPOSED OF ENTITLEMENTS (SUCH AS SOCIAL SECURITY) AND INTEREST PAYMENTS ON BONDS AND LOANS.

DISCRETIONARY: SPENDING THAT IS AUTHORIZED BY THE CURRENT ADMINISTRATION. THIS SPENDING MAY EXPIRE OR BE RENEWED. (INFRASTUCTURE PROJECTS, MILITARY RESEARCH)

Monetary Policy Formation

MONETARY POLICY IS A BRANCH OF DOMESTIC POLICY THAT DEALS WITH STEERING THE ECONOMY BY ADJUSTING THE INTEREST RATE

AND MONEY SUPPLY.

MONETARY POLICY TOOL HOW DO THEY DO IT? IMPACT:

LOWER THE INTEREST RATE

MANDATE BANKS TO LOAN MONEY FOR LESS.

MORE LOANS. ECONOMY GROWS.

RAISE INTEREST RATE MANDATE BANKS TO LOAN MONEY FOR MORE.

FEWER LOANS. ECONOMY SLOWS.

INCREASE MONEY SUPPLY

BUY T-BILLS BACK FROM THE PUBLIC

MORE MONEY – ECONOMY GROWS

REDUCE MONEY SUPPLY SELL T- BILLS TO THE PUBLIC

LESS MONEY – ECONOMY SLOWS

RAISE RESERVE RATE MANDATE BANKS TO KEEP MORE IN RESERVE.

FEWER LOANS – ECONOMY SLOWS.

LOWER RESERVE RATE ALLOW BANKS TO KEEP LESS IN RESERVE.

MORE LOANS – ECONOMY GROWS

The Federal Reserve Board

The Federal Reserve is a unique agency in the bureaucracy, The Seven ,members of the federal reserve board are appointed by the President and serve 14 year

terms.

THE FEDERAL RESERVE BOARD IS AN INDEPENDENT REGULATORY AGENCY THAT IS SOLELY CONCERNED WITH MONETARY POLICY.

How does the Federal Reserve Board steer the economy?

Approximately ONE THIRD of all banks of the United States are under the oversight of the Federal Reserve Board? All national

banks MUST be members. By imposing its will on national banks, the federal reserve board controls the economy.

Budget Formation

Trends in Policy and Budget Formation

Trends in Budget Formation:

1. In the last 80 years, spending on entitlement programs has been steadily INCREASING. (EX: Social Security and Disability Benefits)

2. In the last 80 years, mandatory spending has become a much larger percentage of the budget than discretionary spending (EX: Loan interest and foreign debt)

3. Presidents and Congresses are very quick to increase spending on social programs and very slow to increase taxes. This is because raising taxes may ruin reelection chances and often leads to a budget deficit.

4. The United States government has seriously considered a “Balanced Budget Amendment” that would require Congress to limit spending to tax revenues.

5. Income tax represents the largest amount of revenue for the Federal Government.

Republicans (Conservatives)

Democrats (Liberals)

Fiscal Policy •Favor Tax Cuts•Favor Decrease of Federal Program Spending

• Favor Tax Increase•Favor Increase of Federal Program Spending

Monetary Policy •Laissez-Faire Capitalism• Favor a reduction of monetary regulation•Disapproval of Federal Reserve Activity

•Keynesian Economics•Favor an increase of monetary regulation•Approval of Federal Reserve Activity