AP Gov Chapter 16 Outline

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1 I. THE POLICYMAKING PROCESS The first step in the policymaking process is identifying a problem. Numerous problems exist, but their solutions through policy are impossible until they are identified by policymakers. Typically this occurs through public debate. Policymakers also rely on their constituents, interest groups, and the media to bring policy problems to their attention. The identification of a problem, the reaction to the problem and the solution all form the policy process. There are five key steps in this process. A. Agenda Building This is the effort of identifying a problem and getting it on the agenda. This may come about through crisis, or through the lobbying efforts of interest groups or others concerned about the problem. B. Policy Formulation This consists of the debate that occurs among government officials and the public in the media, in Congress, and through campaigns. C. Policy Adoption This is the selection of a strategy for addressing the problem from among the solutions discussed. D. Policy Implementation This is the administration of the policy adopted by bureaucrats, the courts, and others. E. Policy Evaluation II. HEALTH CARE Groups evaluate the policy to determine if it has had the desired impact. The feedback also evaluates unintended consequences of the policy adoption. The feedback is considered part of the agenda building and formulation process, so that policy can be fixed if needed. Health care spending has gone up from 6 percent of our income in 1965 to 18 percent today. Compared to other advanced industrial countries, our spending as a percentage of Gross Domestic Product (GDP) is quite high double the rate of some countries. A. The Rising Cost of Health Care One cause of the rising cost is that the population is growing older, and older people need more care. 1. Advanced Technology. The development of new technologies that help physicians and hospitals prolong human life is an ongoing process in an ever advancing industry. Although useful, advanced diagnostic machinery is very expensive.

2 2. The Government s Role in Financing Health Care. The government funds about 45 percent of health care spending, private insurance provides about 35 percent, and the rest is picked up by individuals or charities. B. Medicare Medicare is a federal health insurance program that covers U.S. residents over the age of 65. The costs are met by a tax on wages and salaries (currently set at 2.9 percent). When created in 1965, Medicare did not cover medicine. Beginning in 2006, the Medicare program began paying part of the cost of prescription drugs. Medicare is the second most expensive federal program after Social Security. To contain costs, the government has placed caps on payments for procedures, with mixed results. Some health care providers now will not serve Medicare clients. C. Medicaid Medicaid is a joint state/federal program that provides medical care to the poor, including indigent elderly persons in nursing homes. Today there are more than 46 million people enrolled in Medicaid; nearly 4 million were added due to the increase in unemployment following the fiscal crisis of The program is funded out of general government revenues. 1. Why Has Medicaid Spending Exploded? One reason is that the income ceiling for Medicaid eligibility has increased, making it a more attractive option for low income workers than the health insurance offered by their employers. 2. Medicaid and the States. While the federal government pays almost 60percent of Medicaid s costs, the portion paid by the states has increased rapidly. D. The Uninsured Fifteen percent of the population lacks health insurance. Thirty five percent of working Hispanic Americans lack coverage. 1. The Uninsured Employed. Smaller businesses often find it hard to supply health insurance to their employees, as it costs on average $10,000 or more per employee. Many of the working uninsured are young and healthy. A health catastrophe for such a person, however, could force them into bankruptcy. 2. Shifting Costs to the Uninsured. A special problem is that many healthcare providers charge the uninsured steeply higher rates for services than the insured, because insurance companies and the government have the power to negotiate lower prices for their clients.

3 III. THE 2010 HEALTH REFORM LEGISLATION On March 23, 2010, President Obama signed the Patient Protection and Affordable Care Act, which is the biggest reform of the American health care and health insurance system since Medicare was created in The new legislation relies on a combination of private insurance, public programs like Medicare and Medicaid, and new state based non profit health exchanges to provide health insurance coverage to almost all Americans. A. Requirements of the New Health Policy Legislation The act requires all Americans who earn wages to have a health insurance policy either through their employer or through one of the new non profit health exchanges. By 2017, employers may participate in state based exchanges as well. Eligibility for Medicaid will be expanded as will insurance options for children in low income families. The act also requires health insurers to maintain dependent coverage up to age 26 and they are prevented from dropping coverage for people who become ill. The legislation also includes ways to make medical systems more efficient and to improve the delivery of health care. B. Opposition to Health Reform Legislation Republicans and economic conservatives, among others, objected to the act arguing that the program costs too much and will explode the federal deficit. Many also object to the mandate that all working Americans carry health insurance. IV. ENVIRONMENTAL POLICY Concern about pollution has made environmental policy an important part of domestic policy. A major source of concern for the general public has been the emission of pollutants into the air and water. A majority of climate scientists believe that these pollutants are one of the causes of global climate change and that global warming will present a major threat to human survival. A. Environmentalism Early in the twentieth century, environmentalism was focused on wilderness land use issues. Conservation was a policy under which natural resources should be used, but not abused. In contrast, preservation called for natural preserves that are isolated from the effects of human activity. 1. The Environmentalist Movement. Beginning in the 1960s, a new movement arose that was more focused on pollution. A series of wellpublicized pollution catastrophes helped bring attention to the problem. 2. Ecology. In the 1970s, some environmentalists began to advocate policies that were a radical elaboration of the old preservationist philosophy.

4 Many even claimed that the human race itself was the problem. This line of argument was controversial, to say the least. B. Cleaning Up the Air and Water The public had a growing awareness of environmental problems throughout the 1970s and 1980s. Major environmental problems like oil spills and toxic waste sites led the government to formulate long term policy aimed at protecting the environment without causing major damage to the economy. The following polices reflect the government s recognition of the need to protect the environment. 1. The National Environmental Policy Act. This was enacted in 1969 in an attempt to set national standards for assessing the impact that major federal projects (construction of roads, buildings, and so on) would have on the environment. Such projects could not be started without first receiving an environmental impact statement (EIS). 2. Curbing Air Pollution. The 1990 amendments to the Clean Air Act of 1963 constitute a comprehensive policy mandating cleaner air in urban areas. Utility plant emission levels are monitored and the plants must significantly reduce the amount of carbon monoxide emissions. Automobile manufacturers were required to reduce emissions of nitrogen oxide progressively until Water Pollution. The Clean Water Act of 1972 amended the Federal Water Pollution Control Act of The Clean Water Act sought to make waters safe for swimming, to protect fish and wildlife, and to eliminate the discharge of pollutants into the water. The Clean Water Act has proven controversial, however, because of its broad definition of wetlands (which are subject to prohibitions on filling and dredging) and because of the migratory bird rule (which ruled any waters suitable for use by migratory birds was subject to regulation as wetlands). C. Cost Effective Solutions Critics of our environmental policy contend that these restrictions cost jobs and negatively affect the economy. Without doubt, there are substantial costs involved in the new policies. But there are also substantial costs involved in not attempting to resolve the environmental problems. 1. The Costs of Clean Air. One method of supporting cost effective solutions was part of the Clean Air Act of The act capped overall national sulfur dioxide emissions but also permitted free trade in rights to emit sulfur dioxide. As a result, the sulfur dioxide emissions are made by the companies that reap the greatest economic advantage from their right to emit.

5 2. There Have Been Improvements. As a result of legislation, air and water pollution is down dramatically from what it was three or so decades ago. Lead content in the air is three percent of what it was. Sulfur dioxide is down by four fifths. D. The Endangered Species Act (ESA) Passed in 1973, ESA made it illegal to kill, harm, or otherwise take a species listed as endangered or threatened. The government could prevent landowners from engaging in development that would harm a listed species. Restrictions on development and on property rights in general have made ESA controversial. E. Global Warming V. ENERGY POLICY In the 1990s, climate scientists determined that CO2 emissions were causing the earth to warm up due to a greenhouse effect. Many studies have shown that global warming has already begun, although the effects of the change are still modest. 1. The Kyoto Protocol. In 1997, a meeting in Kyoto, Japan, drew up a treaty to limit CO2 emissions. The treaty did not place restrictions on developing nations. As a result, the U.S. Senate opposed the treaty in a resolution and President Bush refused to submit it. Even in those European nations that most enthusiastically supported the Kyoto protocol, the results have not been overly positive. 2. The Global Warming Debate. Considerable disagreement exists as to how much warming can be anticipated during the coming century, and presuming the warming effect exists, what is to be done about it. Global warming has become a major political football to be kicked back and forth by conservatives and liberals. Energy policy (i.e., laws that are concerned with how much energy is needed and used and with the regulation of energy producers) tends to become important only during a crisis. The United States has always had enormous energy resources; however, the American economy depends almost totally on fossil fuel (i.e., oil, coal, and natural gas), much of which is imported. A. Energy and the Environment Because of the effects of producing and consuming energy, energy policy is deeply entangled with environmental policy. A series of laws passed over the last 20 years has forced cities to reduce smog and to require cleaner burning gasoline. Congress has also mandated that 10 percent of fuels sold in the years to come include ethanol as an ingredient. As the cost of energy rises, however, the debate intensifies over domestic power production such as offshore drilling and electric power generated by coal fired plants. The explosion on the BP drilling rig

6 Deepwater Horizon in 2010 and the subsequent months of oil pouring into the Gulf of Mexico has significantly changed the terms of this debate. B. Nuclear Power An Unpopular Solution Nuclear power plants are very efficient and emit very low levels of greenhouse gases. However, accidents more than 30 years ago have almost destroyed support for nuclear power in the United States. Not only do people fear the possibility of an accident at such a plant, but nuclear plants provide a superb target for terrorist attacks. Finally, nuclear plants produce spent fuel that must be stored until it is safe. C. Alternative Approaches to an Energy Crisis A number of alternative sources of energy can be used to reduce the nation s dependence on fossil fuels. Wind farms generate energy for cities, and research continues on harnessing the power of ocean waves and geothermal energy. However, the technology does not yet exist to use any of these sources to produce the quantity of energy needed to replace coal plants or other current energy sources. Rising gas prices have spurred a much greater demand for hybrid and other more fuel efficient cars, encouraged people to ride motor scooters for city commutes, and increased the use of mass transit. The Obama administration is a strong proponent of green energy as a source of economic growth. VI. POVERTY AND WELFARE Key concept: income transfers transfers of income from some individuals in the economy to other individuals. This is generally done by way of the government. A. The Low Income Population The government devised a system beginning in 1963 that defined poverty based on family income in comparison to the cost of a nutritious food plan. All families whose income level was not at least three times larger than the food plan were classified as below the poverty line. Since 1969 the government has revised the formula based on changes in the consumer price index (CPI). In an attempt to assist these families, the government made transfer payments to them in the form of programs like food stamps and housing vouchers. In 2009, 43.6 million people lived on the equivalent of less than $5,500 a year. That was up from 39.8 million Americans in The 2009 number means that more than 1 in every 7 Americans lived in poverty. The actual rate was 14.3 percent, which is the highest that measure has been since 1994, and was up from 13.2 percent in In 2009, the official poverty level for a family of four was about $22,000. B. The Antipoverty Budget In an effort to resolve some of the most pressing problems of poverty, the federal government has established a variety of programs. The 2009 budget allocated

7 about one fourth of all federal expenditures to programs that support persons of limited income. More than one quarter of this amount was for Medicaid. C. Basic Welfare Aid to Families with Dependent Children (AFDC) provided aid to children in poverty. This program was administered by state governments but was financed by the federal government. This program was eliminated by the Welfare Reform Act of 1996 and replaced with Temporary Assistance to Needy Families (TANF). TANF is a state administered block grant program. The states, not the national government, now bear the burden of any increased welfare spending. The Welfare Reform Act of 1996 had several key components. A key provision provided for devolution of the welfare system. Most welfare recipients are now limited to two years of assistance at one time, with a lifetime limit of five years. The act sought to reduce the number of people receiving benefits and, in fact, the number has been cut about in half. D. Welfare Controversies Basic welfare is often criticized on several grounds. Some believe it reduces the incentive to find work while others say it is anti marriage because it makes it easier for unmarried mothers to get by. Perhaps because of these objections, basic welfare payments in the United States are relatively low compared with similar payments in other industrialized nations. E. Other Forms of Government Assistance Supplemental Security Income (SSI) was established as part of Social Security in 1974 to provide a minimum income for the aged, the blind, and the disabled. Food Stamps are designed to help provide adequate nutrition for low income families. The program began as a twofold mission to help farmers to sell surplus products and to eliminate malnutrition. The Earned Income Tax Credit (EITC) helps lower income workers by providing a rebate on Social Security taxes. An estimated $49 billion per year is returned to taxpayers through the program. F. Homelessness Still a Problem The problem of homelessness continues to be an important one, and many advocates for the homeless argue that the Welfare Reform Act has exacerbated the problem. Estimates are that on any given night there are anywhere from 230,000 to 750,000 people who are homeless. The fastest growing sub group of the homeless is families. The debate surrounding the policy issue of homelessness is couched in ideological terms, as are the solutions to this problem. VII. IMMIGRATION Immigration has shaped American society from the very beginning. One of the questions facing the country today is the effect of immigration on American politics and

8 government. Others are whether immigration is having a positive or negative impact on the Untied States and the form immigration reform should take. A. The Continued Influx of Immigrants Immigration rates are now higher since their peak in the early twentieth century. 1. Minority Groups Importance on the Rise. About a million people a year immigrate to this country. Four out of five immigrants come from Latin America or Asia. Later in the twenty first century immigration could help lead to the United States becoming a majority minority country. 2. The Advantages of High Rates of Immigration. Immigrants expand the workforce and help to support, through their taxes, government programs such as Medicare and Social Security. B. Attempts at Immigration Reform In 2006 the controversy over illegal immigration reached a boiling point as some argued that jobs were being lost, wages were being depressed, and services were being stretched to the breaking point. In response hundreds of thousands took to the streets protesting in favor of immigrants and their rights. Congress split over the issue, with some members favoring amnesty for illegal immigrants, some favoring a plan for the gradual awarding of citizenship, while others favored sending illegal immigrants back to their home countries. Congress did authorize the construction of a 700 mile fence between the United States and Mexico. The fence is to be a real fence in some areas and a virtual fence using cameras and surveillance technologies in other areas. Some states and cities have enacted laws making it illegal for undocumented residents to access public services or to get drivers licenses. In 2010 Arizona passed a law that requires state and local law enforcement officers to check for an individual s citizenship or residency papers if they have been stopped on suspicion of an offense. The reaction in favor and in opposition to the law has been swift and passionate. Supporters claim the law is necessary to limit crime and violence linked to illegal border crossings. Opponents claim that the law is a form of unconstitutional racial/ethnic profiling that will result in harassment of Latino residents. VIII. CRIME IN THE TWENTY FIRST CENTURY In 2006, overall crime rates in the United States dropped below those in many other countries, such as Britain. Nonetheless, virtually all polls taken in the United States in the last ten years have shown that crime remains a major concern. A. Crime in American History Crime has always been considered a problem in American society. After rising for many years, violent crime rates have come down over the last ten years. The reasons for this are not clear. One explanation might be the large number of perpetrators who have been sent to prison, putting them out of commission.

9 Increased spending on law enforcement has also been suggested as a reason. One study even claimed that legalized abortion has had a major effect by reducing the population likely to commit crimes. B. Crimes Committed by Juveniles These crimes have been a special concern, though juvenile crime rates are dropping as well. Curfews and boot camps are two solutions that have been advanced. Increasingly, young offenders are being tried as adults, especially for violent offenses. C. School Shootings School shootings occur not only in secondary schools but also in elementary schools and on college campuses. The perception of school shootings as a growing form of violence has been reinforced by the media, even when homicide rates in schools declined from 1993 to However, students continue to face less risk of serious violent crime while at school than while out of school. D. The Cost of Crime to American Society One calculation put the cost of all crime in America violent and nonviolent at a trillion dollars. Perhaps half of that sum is a valuation placed on pain, suffering, and reduced quality of life. E. The Prison Population Bomb Stiff sentences are now national policy. By 2008, the number of persons held in jail or prison exceeded 2.3 million. In 1990, the figure was only 1.1 million. Why has the prison population grown so much when the crime rate was declining in the last decade? Many states and localities have increased the list of crimes for which a criminal may receive a mandatory sentence. Also, many individuals who are in prison were convicted of drug offenses, which carry automatic sentences for a specified length of time. 1. The Incarceration Rate. Key term: incarceration rate, the number of persons held in jail or prison for every 100,000 persons in a particular population group. Today, the rate for U.S. men is 1,403 and for U.S. women, 135. Among the most frequently incarcerated demographic group, non Hispanic black men aged 25 to 29. At any given time, more than 10 percent of this group is in jail or prison. 2. International Comparisons. The United States has more people in jail or prison than any other country in the world. 3. Prison Construction. It follows that prison construction is a booming business. In 1923, there were only 63 prisons in the entire country. Since 1980, Texas alone has built 120 new prisons, Florida 84, and California 83. Still, prison overcrowding remains an issue.

10 4. Effects of Incarceration. Imprisonment keeps truly violent felons from committing additional crimes. A majority of all persons arrested each year are arrested for drug offenses. From 20 to 40 million people may violate the drug laws each year, so the supply of potential prisoners seems virtually limitless. F. Federal Drug Policy One of the major causes of crime in the United States is the use and sale of illegal drugs. Illegal drug sales can result in violence because of turf wars between rival drug gangs, because dealers operate outside the justice system and therefore resort to violence to settle disputes, and because drug users may resort to crime to finance their drugs. Money spent on federal drug interdiction programs has not met with much success, as illegal drug consumption in the United States has remained steady. State and local governments, however, have been attempting new remedies to curtail the drug problem. One strategy includes sentencing drug offenders to rehabilitation rather than prison. G. Confronting Terrorism Probably the most devastating type of crime is terrorism because of its potential to inflict violence on thousands of victims. After the attacks of September 11, 2001, the federal government enacted many policies in an effort to combat terrorism. Some policies enjoyed widespread public support; others did not. What seems clear, however, is that counter terrorism strategies will necessarily be a part of federal government policy for years to come.

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