A.P. GOVERNMENT: CHAPTER 14 – THE CONGRESS, THE PRESIDENT, AND THE BUDGET: THE POLITICS OF TAXING AND SPENDING
Lineberry Chapter Objectives:
- Identify the major sources of federal revenue.
- Determine how tax expenditures benefit middle – and upper –income tax payers and corporations.
- Identify the major recipients of federal tax expenditures.
- Discuss how the rise of the national security state and the rise of the social service state are associated with government growth in America.
- Explain how political scientists sometimes use the term incrementalism to describe the spending and appropriations process.
- Explain the impact that “uncontrollable” expenditures and entitlements have on the federal budget.
- Identify the key players and decision makers in the budgetary process.
- Explain how public opinion is a key element in the budgeting process.
- Outline the steps involved in developing the president’s budget.
10. Outline the steps in developing the congressional budget process.
- Evaluate the ways in which the budget affects the scope of government.
**** INTRODUCTION:
This is the first A.P. textbook I’ve encountered with a specific chapter on the budgetary process.
Previously, the budget was covered under Congress, the presidency, and/or economic policy. With
the recent rise of divided government, the massive federal debt, future problems with social security and entitlements, the rise in defense spending since 9/11 & Iraqi War, and Bush’s tax cuts – budgetary policy is worthy of it’s own chapter. Unfortunately, most of my notes and background info
is still found under other units.
This unit will be supplemented with several class handouts to compensate for my deficits.
NOTE: Chapters 17-20 deal with the policy process. The section found below deals with explaining
the basics of the policy process, which has been simplified to the acronym M.I.C.E.
A.P. GOVERNMENT CHAPTER 14 LECTURE AND DISCUSSION
I. Background Information:
A. Chapter 14 serves as the basis for chapters 17-20 on the policy making process. Recently, at least 20-40% of the National Exam essays involve these chapters in some form, as they do not really
accommodate multiple-choice questions.
B. Policy-making process - refers to the means of deciding what issues are placed on the national agenda and receive attention. The process is not always majoritarian and frequently involves various political and economic elites. Players (those effected) will often try to 'spin' the public or lobby politicians to achieve their preferred results. The informed individual will try to perceive fact from fiction, however the average citizen is rarely informed or cares.
C. Political agenda - refers to the immediate issues receiving attention - usually initiated by a variety of political elites (the president, congressional leaders, the national media, bureaucratic agency heads, influential interest groups, etc.). Issues may be long-term or temporary depending on media coverage, public's attention span, and perceived costs vs. benefits.
D. Public perception - "A soundbite/visual a day keeps the spin doctors at play" - the majority of the public get their information from the media and usually can be easily swayed by simplistic explanations to complex issues (i.e.) pros and cons of 1999 federal tax reduction, U.S. involvement in Kosevo, etc., thus elitists try to 'spin' public perception of costs and benefits.
E. Costs vs. benefits argument - Cost is any burden (real or imagined) that an individual will bear if a policy is adopted. Benefit is any satisfaction or asset (real or imagined) that an individual will bear if a policy is adopted. Either can be tangible (monetary, property, etc.) or intangible (system of moral beliefs, principles, etc.).
F. Majoritarian vs. elitist politics - Depending on policy issue at stake, how many people perceive personal costs/benefits, and amount of spin/publicity involved - the number of players will vary. Personal conduct issues tend to be majoritarian, while economic can be either or both.
G. Basic rules in winning policy debates:
1. try to determine which is best for your side majoritarian or elitist - majoritarian will try to make issue populist and broaden the perceived public costs/benefits - elitists will try to reduce the opposition and win with a plurality.
2. if your side appears that it is going to lose, either a) attract the disaffected by changing the costs/benefits perception to include them and broaden your base, or b) put a negative spin on the costs/benefits of the opposition.
3. The public reacts more to short term gains/loses than long term, more to tangible vs. intangible costs/benefits, and more to monetary than moralist issues.
4. Simplify complex issues (i.e.) charts, graphs, verbal analogies
H. Effective analysis of the policy-process will require the following skills:
1. memorize the m.i.c.e. mnemonic** and be able to apply,
** M (bc + bb) I (nc + nb) C (bc + nb) E (nc + bb)
2. be able to identify all players, their respective positions, and available resources to control the agenda,
3. determine if issue is likely to be majoritarian, elitist, or both,
4. obtain as much information about the issue as possible so that you are aware of multiple perspectives and are not being 'spun,'
5. be able to see past the spin, past the short term consequences, and accurately cite all the costs and benefits to everyone, and
6. remember, everything that benefits someone is costing someone else - very few issues are win- win with zero sum consequences.
NOTE: ALMOST ANY ISSUE CAN BE REINTERPRETED TO INVOLVE ANY OF
OF THE POLITICAL COALITIONS!!!
I. Types of political coalitions: one's identification with a given group depends on their perception of the issue and its costs/benefits
1. Majoritarian politics - broad costs w/ broad benefits
* second most publicly preferred
* often the easiest to resolve due to the large number of players & coalitions involved, though usually results in a compromise of their differences
* perceived existence of 'free riders' often appeased by distributed costs
2. Interest-Group politics - narrow costs w/ narrow benefits
* most likely to involve elitist politics as majority of public perceives little cost or little benefit
* often involves opposing interest groups who may or may not opt to influence apathetic public
* interest groups are more likely to keep the 'loop' tight and try to influence congressional committee members or party leaders
3. Client politics - broad costs w/ narrow benefits
* least preferred by the public as it is perceived to have multiple 'free riders'
* often involves specific economic interests or 'pork barrel' projects
* proponents prefer elitist approach to make the public indifferent to the potential costs, opponents prefer majoritarian and emphasize broad costs
4. Entrepreneurial politics - narrow costs w/ broad benefits
* most preferred by the public
* few issues actually fall into this category, but proponents will often spin perception to fit this for success
* success depends upon the resources available to the minority
* occasionally such issues may result in persecution of the minority at the benefit of the majority
J. Start practicing these concepts on your own while following current events. Listen closely, identify the players and how they are trying to spin public perception of the costs vs. benefits!!
II. Terms: Be able to define and apply the following:
- authorization vs. appropriation bill
- House Ways and Means Committee / Senate Finance Committee
- budget resolution
- OMB / CBO/ GAO
- deficit / surplus / federal debt / foreign trade deficit
- entitlements / Social Security / F.I.C.A./ Medicare/ Medicaid
- controllable vs. uncontrollable expenditures
- Sixteenth Amendment
- Social Security Act of 1935
III. Discussion Questions:
A.. Explain how the American public's current perception of costs and benefits are influenced by its past cultural influences of:
1. the Protestant work ethic
2. equality of opportunity vs. equality of result
3. lack of class consciousness
IV. Rhetorical Questions/Application:
A. Have the following recent trends made policy-process more difficult or easier to achieve? Provide evidence for your opinion.
1. an increase in the number of interest groups
2. the decline in voter participation in elections
3. the increase in the number of mass media sources
4. divided government between the president and Congress
5. an increase in cross-cutting differences among voters
B. Explain how the following recent scenarios could be 'spun' to include all of the policy coalitions (m.i.c.e.).
1. President Bush’s tax cuts and removal of the estate tax.
2. Congress proposes a constitutional amendment prohibiting same sex mariages.
3. The Defense Department's proposal to appropriate over $300 billion dollars over the next 20 years to build a fleet of F-22 fighter jets.
4. Following various public school shootings, many congressmen have advocated a bill to place the 10 commandments in every classroom in order to encourage greater public morality.