Chapter 15: Domestic Policy

Chapter 15

Domestic Policy

Chapter Summary

The Policymaking Process

The beginning of the policymaking process is the recognition that a problem exists and needs a solution. The Medicare Reform Act provides a good example of the creation of a policy. There are five basic steps in policymaking: See these steps outlined in the book.

  • AgendaBuilding

Advocates for the elderly, like AARP, had called for a Medicare drug benefit for years.

  • Policy Formulation

Members of Congress worked closely with representatives from a number of groups and organizations. The insurance and pharmaceutical industries supported the bill.

  • PolicyAdoption

The Republican proposal barely passed at the last minute as AARP endorsed the bill.

  • Policy Implementation

The major provisions of the law became effective in 2006. A series of drug discount cards did become effective in 2004.

  • PolicyEvaluation

Evaluation continues, and Congress will receive feedback on whether the cost-effective support of the medical expenses of the elderly will result from the act.

Health Care

Spending for health care is estimated at almost 15% of the total U.S. economy. See Figure 15-2 and 15-3. The rising cost of health care can to traced to a number of factors, such as an aging population (see Figure 15-4), advanced and expensive technology, and soaring costs associated with Medicare and Medicaid programs. The Medicare program, created in 1965 under President Lyndon Johnson, pays hospital and doctor bills for U.S. residents over the age of 65. In 2006, Medicare will pay some prescription drug benefits. Medicare has become the second-largest domestic spending program after Social Security. One government response to these soaring costs has been reimbursement caps and reduction in payment to hospitals and doctors. The Medicaid program is designed to provide health care for the “working poor” and has generated one of the biggest expansions of government entitlements in the last fifty years. Over 45 million Americans, fifteen percent of the population, do not have health insurance. This number varies greatly from state to state and includes many individual who are employed but cannot afford insurance. The uninsured often pay the highest prices for hospitals and doctors. One possible solution to health care problems, provided by all other industrialized nations, is national health insurance. The Canadian system is often viewed as a national health insurance model, although there are any number of problems associated with this “perfect” solution. President Clinton tried to steer a national health insurance plan through Congress, but it was defeated. Republicans have proposed as an alternative a health saving account, which is tax-free.

Poverty and Welfare

Historically, poverty has been accepted as inevitable. See Figure 15-5 for the official number of poor in the United States. Industrialized wealthy nations like the United States have been able to eliminate mass poverty through income transfers. An array of welfare programs attempts to transfer income from wealthy to poor individuals. The official definition of poverty in the United States in 2006for a family of four is around $20,000 a year. The poverty level varies with family size and location. In-kind subsidies, such as food stamps, low-income housing, and medical care are not usually counted as income. If these benefits are counted as income, the poverty rate drops. In the wake of the Welfare Reform Act of 1996, the U.S. government provides the following low-income assistance: Temporary Assistance to Needy Families (TANF), Supplemental Security Income (SSI), food stamps, and the earned-income tax credit (EITC) program. The Welfare Reform Act of 1996 gave states more control over welfare programs but at the same time created major new problems for states to solve. The provisions of the law conflict with many state constitutional mandates to take care of the needy and require more enforcement provisions that states must pay for. The long-term effects of children growing up in poverty may cause severe problems for our society in the future. A final problem is homelessness in the United States. It is difficult to estimate the number of homeless in the United States because they consist of street people and sheltered homeless. Some cities have “criminalized” the homeless, so that some are in jails and prisons.

Immigration

The concept of the melting pot in American society described the idea that immigrants could best succeed by adopting the language and political values of the dominant culture. Questioning the validity of this concept, many people today think that American society should be seen as a multicultural country. The lines separating racial groups are increasingly blurred. Today, immigration rates are among the highest they have been since their peak in the early twentieth century. In 2006 illegal immigration was intensely debated in the United States. Calls for massive overhaul of the laws dealing with illegal immigrants were met with mass demonstrations in support of immigrants throughout the country. Ironically the two houses of Congress were unable to reach agreement on this issue about which so much of the nation was concerned and ended its session prior to the midterm elections with promises to provide further study and investigation of the issue. The issue of controlling immigration has mingled with the war on terrorism and will continue to pose a challenge for policy makers.

Crime in the Twenty-First Century

Crime has been a major policy concern since the time of the American Revolution. Two crime issues that have been particularly significant are the rise in violent crimes and the increasing number of serious crimes committed by juveniles. See Figure 15-6for violent crime rates, Figures 15-7 and 15-8for homicide and theft rates. See Figure 15-8 for the juvenile crime rate. One of the major costs of fighting crime is building new jails and prisons. Illegal drugs are recognized as a major source of crime. There are two starkly opposite approaches to this problem. One is a “gettough” policy of mandatory sentences. The second policy involves the legalization of drugs to take away the economic incentive of those involved in the drug trade. Terrorism has jumped to the top of crime concerns with the attacks on the WorldTradeCenter and the Pentagon on September 11, 2001.

Environmental Policy

The impact of human action on the environment has been a concern in the twentieth century with pervasive industrialization and population increases. In the 1960’s federal legislation was enacted to protect the environment. The first major environmental legislation, prompted by the Santa Barbara oil spill in 1969, was the National Environmental Policy Act. This act required environmental impact statements (EIS) concerning major federal actions that might affect the quality of the environment. The Clean Water Act of 1972 and the Clean Air Act of 1990 addressed issues of pollution that plagued urban areas. The Endangered Species Act of 1973 provided an opportunity for the protection of wildlife habitats. In the 1990’s one of the most controversial environmental issues involved the issue of global warming. The Kyoto Protocol in 1997 was a worldwide effort to reduce emissions of greenhouse gases. The U.S. Senate unanimously voted against the treaty. By 2004, 122 nations had ratified the protocol, but not the U.S. or Russia. The economic costs of protecting the environment are frequently cited as a justification for cutting back on environmental protection policies.

Key Terms

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Chapter 15: Domestic Policy

domestic policy

earned-income tax credit (EITC)

environmental impact statement (EIS)

food stamps

incarceration rate

income transfer

in-kind subsidy

national health insurance

Medicaid

Medicare

Supplemental Security Income (SSI)

Temporary Assistance to Needy Families (TANF)

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Chapter 15: Domestic Policy

OTHER RESOURCES

A number of valuable supplements are available to students using the Schmidt, Shelley, and Bardes text. The full list of the supplements is in the preface to this study guide. Ask your instructor how to obtain these resources. One supplement is highlighted here, the INFOTRAC Online Library.

INFOTRAC EXERCISES

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“Bush Bilks the Elderly”

The premise of this article is that President Bush’s spending proposals will provide a tax cut for the wealthy and seriously damage Social Security and Medicare.

Study Questions

  1. What is President Bush plan for Medicare?
  2. What is the current situation with Social Security?
  3. What political groups does the author analyze?
  4. What are the obstacles that these groups bring to the successful implementation of this policy?

Practice Exam

(Answers appear at the end of this chapter.)

Fill-in-the-Blank Supply the missing word(s) or term(s) to complete the sentence.

  1. Courses of action on issues of national importance are called ______.
  2. Selecting a specific strategy in the policymaking process is referred to as ______.
  3. The legislation highlighted in the policymaking process is the ______Act of 2004.
  4. A traditional solution to poverty has been ______.
  5. The issue of crime has been on the national agenda in the U. S. for ______.
  6. A disturbing element of crime in the U.S. is the number of serious crimes committed by ______.
  7. The majority of arrests today in the U.S. are for crimes related to ______.
  8. The U.S. government has been addressing pollution since before the ______.
  9. The major environmental law prompted by the Santa Barbara oil spill was the ______.
  10. One of the most significant environmental issues to develop in the last few years is ______

______.

True/False Circle the appropriate letter to indicate if the statement is true or false.

TF1.The first step in the policymaking process is getting the issue on the agenda.

TF2.Historically throughout the world, poverty has been accepted as inevitable.

TF3.The poverty rate today is based on the consumer price index (CPI).

TF4.Food stamps are given only to the elderly and disabled.

TF5.The problem of homelessness has almost disappeared in the 21st century.

TF6.Polls indicate that most Americans are worried about violent crime.

TF7.Ozone is the basic ingredient of smog.

TF8.Only recently has the U.S. government begun to respond to the problems of pollution.

TF9.The United States is making fairly substantial strides in the war on toxic emissions.

TF10.The Kyoto Protocol signed by the United States is helping to solve the problem of global warming.

Multiple-Choice Circle the correct response.

  1. The first step in solving a public problem is
  2. to determine the cost involved.
  3. to determine who will be helped and who will be harmed.
  4. for people to become aware of the problem.
  5. for the President to declare a state of emergency.
  6. to finance the project.
  1. After public policy implementation, the last step is
  2. the variables associated with cost analysis.
  3. policy evaluation.
  4. the ease with which solutions can be accomplished.
  5. policy formulation.
  6. policy adoption.
  1. A traditional solution to eliminate poverty has been
  2. work programs.
  3. payment vouchers.
  4. education training programs.
  5. income transfer.
  6. tax cuts.
  1. The United States has been able to eliminate mass poverty because of
  2. foreign aid from other countries.
  3. sustained economic growth.
  4. an increased work ethic.
  5. mass infusions of tax dollars.
  6. low income tax cuts.
  1. The threshold income level for defining poverty was originally based on
  2. the consumer price index.
  3. the annual price changes in food.
  4. guidelines established by the Consumer Protection Agency.
  5. guidelines from the Farmers Union.
  6. guidelines from the Office of Management and Budget.
  1. If the official poverty level were adjusted to include food stamps and housing vouchers it would
  2. significantly increase the number of people classified as living below the poverty line.
  3. dramatically lower the percentage of the population below the poverty line.
  4. only marginally lower the percentage of the population above the poverty line.
  5. effectively reduce the level of benefits.
  6. have no impact on the poverty level.
  1. The Welfare Reform Bill of 1996 gave more control over welfare to
  2. the national bureaucracy.
  3. state governments.
  4. local government.
  5. the private sector.
  6. faith-based groups.
  1. During the first five years of welfare reform, families receiving benefits declined by
  2. 20 percent.
  3. 30 percent.
  4. 40 percent.
  5. 45 percent.
  6. 50 percent.
  1. The fastest-growing subgroup of the homeless population is
  2. street people.
  3. the mentally ill.
  4. illegal immigrants.
  5. families.
  6. single drifters.
  1. In recent years, serious crimes committed by ______have alarmed citizens.
  2. women
  3. juveniles
  4. immigrants
  5. the elderly
  6. first time offenders
  1. The majority of arrests today involve
  2. murder.
  3. drug offenses.
  4. federal crimes.
  5. white collar crimes.
  6. terrorism.
  1. Which of the following was not a reason for the development of the environmental movement?
  2. Publication of the book Silent Spring
  3. An oil spill off the coast of Santa Barbara, California
  4. The Cuyahoga river in Cleveland catching fire
  5. The creation of Earth Day
  6. The creation of the George W. Bush energy plan
  1. The National Environmental Policy Act created the
  2. environmental impact statements.
  3. Clean Air Act.
  4. ozone limits.
  5. Clean Water Act.
  6. ban on global warming.
  1. What part of the Clean Water Act of 1972 did the Supreme Court rule unconstitutional in 2001?
  2. The goal to make waters safe for swimming
  3. The protection of fish and wildlife
  4. The elimination of the discharge of pollutants into the water
  5. The filling or dredging of wetlands without a permit
  6. The migratory-bird rule concerning what could be regulated as wetlands
  1. The cost of complying with the Clean Air Act of 1990 has caused
  2. the government to shut down power plants.
  3. the increase in nuclear power plants.
  4. the tapping of government energy reserves.
  5. the selling of pollution allowances in the marketplace.
  6. the raising of energy taxes.
  1. The Superfund was created to deal with
  2. air pollution.
  3. water pollution.
  4. global warming.
  5. wetlands protection.
  6. the cleanup of hazardous-waste sites.

17.The Endangered Species Act has been

a.very popular and protected rare species from extinction.

b.very cost effective.

c.ruled unconstitutional by the Supreme Court.

  1. strengthened by President George W. Bush.
  2. undercut by President George W. Bush.

18.The Kyoto Protocol to limit emissions of greenhouse gases was rejected by the U.S. because

a.there is no global warming.

b.it is not cost effective to solve the problem with today’s technology.

c.it is not supported by European countries.

  1. it is not supported by the United Nations.
  2. developing nations faced only voluntary limits.
  1. The argument that it is not cost effective to solve the problem of global warming with today’s technology is held by
  2. President Bush.
  3. the oil companies.
  4. environmentalists.
  5. Bjorn Lomborg.
  6. most scientists.
  1. Which of the following policy decisions is not as obvious to the average citizen?
  2. the protection of endangered species
  3. the cleanup of hazardous wastes
  4. the cleanup of water pollution
  5. the cleanup of air pollution in urban areas
  6. the pollution from power plants

Short Essay Questions Briefly address the major concepts raised by the following questions.

  1. Explain and discuss the steps in the policymaking process.
  2. Discuss the major provisions of the Welfare Reform Act of 1996. What impact will this act have on the poor in America?
  3. Analyze the issues of crime in the United States.
  4. Discuss the major laws attempting to protect the nation’s environment.

Answers to the Practice Exam

Fill-in-the-Blank

  1. domestic policy
  2. policy adoption
  3. Medicare Reform
  4. income transfers
  5. years
  6. juveniles
  7. drug offenses
  8. American Revolution
  9. National Environmental Policy Act
  10. global warming

True/False

1.T 3.T 5.F 7.T 9.T

2.T 4.F 6.T 8.F 10.F

Multiple-Choice

1.c6.b11.b 16. e

2.b7.b12.e 17.e

3.d8.e13.a18.e

4.b9.d 14.e19.d

5.b10.b15.d 20.d

Short Essay Answers

  1. Explain and discuss the steps in the policymaking process. The policymaking process contains five major steps.
  • Agenda building is the first step in recognition of a problem. The media, strong personalities, and interest groups usually facilitate this step.
  • Policy formulation is the discussion between the government and the public of various proposals to solve the problem.
  • Policy adoption is the selection by Congress of a specific strategy from the proposals, which were discussed.
  • Policy implementation is the government action implemented by bureaucrats, the courts, police, and individual citizens.
  • Policy evaluation is groups inside and outside receiving “feedback” about the policy.
  1. Discuss the major issues of poverty and welfare.
  • The Welfare Reform Act shifted to state governments some of the financial burden of, and control over, the welfare system. The Aid to Families with Dependent Children (AFDC) program was abolished. A state-administered program funded by national government grants, called Temporary Assistance to Needy Families (TANF), was created to replace AFDC. The food-stamp program was retained by the national government, but the benefits were reduced.
  • One of the basic aims of the act was to reduce welfare spending by all levels of government in the long run. To accomplish this, two major changes were made in the welfare system.
  • One major change involved limiting most welfare recipients to two years of assistance, unless the recipient is working. Lifetime welfare assistance was limited to five years.
  • The second major change was to deny benefits to unmarried teenage mothers.
  • Supporters of the act point to a 27 percent decline in the number of people on welfare. It is difficult to say what percentage of this group has found jobs to replace welfare benefits.
  • Critics of the act say that the new system makes it difficult for the truly needy to find assistance and believe the provision to deny assistance to unwed teenage mothers will only hurt poor children.
  1. Analyze the major issues of crime in the United States.
  • Crime has been around since the days of the American Revolution.
  • Two recent trends that concern Americans are violent crime and serious crimes committed by juveniles.
  • Violent crime rose steadily from 1970 to 1986. See Figure 15-6.
  • Juvenile crime rose dramatically from the mid-1980s to 1994. See Figure 15-9.
  • Two major issues of crime in the United States are costs to society and the prison population.
  • The yearly cost of crime is estimated at a trillion dollars a year.
  • The United States has the highest incarceration rate of any country in the world. See Figure 15-10.
  • A major cause of crime in America is illegal drugs. Alternative ways to address drug use have been proposed. One involves a get-tough policy, the other involves legalization of drugs.
  • Terrorism has become our most devastating crime.
  1. Discuss the major laws attempting to protect the nation’s environment.
  • Government legislation to control pollution can be traced back before the American Revolution. The most concerted effort to clean up the environment began in 1969 with the passage of the National Environmental Policy Act. This law provides for an environmental impact statement (EIS) to be prepared for all major federal actions that may impact the environment.
  • The 1990 Clean Air Act was designed to clean up air pollution. A major environmental problem of air pollution was acid rain.
  • The Clean Water Act of 1972 established goals of (1) make waters safe for swimming, (2) protect fish and wildlife, and (3) eliminate the discharge of pollutants. Controversy has been the part of the act applied to wetlands.
  • The costs of cleaning up the environment have become a major political issue beginning in the 1990s. The enforcement of the Endangered Species Act has been one of areas where cost has been an issue.
  • Global warming has been another controversial issue with cost and levels of technology necessary to fix the problem at the forefront of discussion. The U.S. rejected the Kyoto Protocol in 1997.

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