Chapter 16: Domestic Policy

I. The Policy-Making Process A. Agenda Building Agenda building is achieve through mass public awareness of a certain issue; from a crisis, technological change, mass media campaigns, strong political personalities, and effective lobbying groups. B. Policy Formulation Various policy proposals are discussed among government officials and the public. C. Policy Adoption Choosing a specific policy from the proposals that have been discussed. D. Policy Implementation Government action must be implemented by bureaucrats, the courts, police, and individual citizens. E. Policy Evaluation Groups inside and outside the government conduct studies to determine what actually happens after a policy has been in place for a period of time.

II. Health Care Spending for healthcare is estimated to account for 15% of the total U.S. economy. A. The Rising Cost of Health Care (people are living longer) a. Advanced Technology= more and more expensive b. The Governments Role in Financing Health Care Currently, govt spending on health care constitutes 45% of total health-care spending. Private insurance= 35% of payments for healthcare. Other 20% paid directly through individuals or philanthropy. Third parties Medicare, Medicaid, and private insurance companies Primary parties caregivers and patients

B. Medicare created by LBJ in 1965 and is specifically designed for the elderly, regardless of income. 2006 partial payment of prescription drugs A federal health-insurance program that covers U.S. residents older than age 65. The costs are met by a tax on wages and salaries. C. Medicaid A joint state-federal program that provides medical care to the poor (including indignant elderly persons in nursing homes). The program is funded out of general government revenues. a. Why has Medicaid spending exploded recently? The income ceiling has increased to more than $40,000/yr in most states. b. Medicaid and the States. The Fed Govt pays 60% of medicaids cost. Even with the federal govt partial reimbursement, the portion paid by the states has increased so rapidly that the states are becoming financially strapped. D. The Uninsured More than 45 million Americans (15%) do not have health insurance. Only 35% of working-class Hispanics are insured E. One Alternative: National Health Insurance National Health Insurance: A plan to provide universal health insurance under which the government provides basic health-care coverage to all citizens. In most cases, the program is funded by taxes on wages or salaries. Single-Payer Plan: A plan under which one entity had a monopoly on issuing a particular type of insurance. Typically, the entity is the government, and the insurance is the basic health coverage. Socialized medicine: National health insurance systems F. Another Alternative: A Health Savings Account Most taxpayers can setup a tax-free HSA, which must be combined with a high-deductible health-insurance policy. Annual contributions of $2,900 per person and $5,800 per family.

III. Environmental Policy A. Environmentalism The movement to protect the environment has been based on two major strands of thought since its beginnings in the early 1900s: Conservation and Preservation. a. The Environmental Movement (1960s & 70s) Rachel Carson Silent Spring b. Ecology the total pattern of relationships between organisms and their environment. B. Cleaning up the Air and Water a. The National Environmental Policy Act: This landmark legislation established The Council on Environmental Quality. It also mandated that an EIS be prepared for all major federal actions that could significantly affect the quality of the environment. b. Curbing Air Pollution 1975 tailpipe emissions 1990 The Clean Air Act: established strict limitations for the emissions of NO2 and other pollutants c. Water Pollution Clean Water Act of 1972, which amended the Federal Water Pollution Act of 1948. Established the following goals: 1.) Make waters safe for swimming. 2.) Protect fish and wildlife. 3.) Eliminate the discharge of pollutants into the water Also, it required municipal and industrial polluters to apply for permits before discharging wastes into navigable waters. C. Cost-Effectiv+e Solutions U.S. spends $210 billion annually to comply w/ federal environmental rules. a. The Costs of Clean Air pollution allowances b. There have been improvements (thanks to environmental interest groups)

Air-born lead is 3% of what it was in 1970 and CO emissions 25%

D. The Endangered Species Act of 1966 & 1973 In 1973, congress passed a completely new Endangered Species Act, which made it illegal to kill, harm, or otherwise take a species listed as endangered or threatened. E. Global Warming a. The Kyoto Protocol In 1997, delegates from around the world gathered in Kyoto for a global climate conference sponsored by the UN. The conference proposed a treaty aimed at reducing emissions of greenhouse gases to 5.2% below 1990 levels by 2012. The U.S.A didnt sign that shit. b. The Global Warming Debate People disagree on the effects of global warming. Yada yada yada

IV. Energy Policy (tends to only be important during a crisis) A. Energy and the Environment Because of the effects of producing energy and burning fuels, energy policy is entangled with environmental policy. The United States continues to pump oil from existing wells and offshore platforms The majority of electric power in the U.S. comes from coal-fired plants in the Midwest B. Nuclear Power an Unpopular Solution Three Mile Island, Chernobyl, and terrorist attacks are frightening to many Americans. Thus, we are behind the rest of the world in nuclear power production. C. Alternative Approaches to and Energy Crisis Geothermal, Solar, Wind, Waves

V. Poverty and Welfare A. The Low Income Population The low-income poverty threshold is based on a study by the department of agriculture in 1963 on the cost of a nutritionally adequate food plan.

<$20,000 for a 4-person family in 2006=poor The income level for the U.S. is twice as high as the worlds average per capita income level.

B. The Antipoverty Budget Bushs 2009 budget allocated ~700 billion to federal programs that support persons of limited income. (Medicaid and other medical care is the largest acceptor of this $$$) Elderly people receive 70% of Medicaid spending C. Basic Welfare With the passage in 1996 of the Personal Responsibility and Work Opportunity Reconciliation Act (Welfare Reform Act), the govt created TANF to replace and earlier program known as AFDC. With TANF the govt gives states block grants targeted for welfare assistance Act wanted to reduce welfare spending so: 1.) Limited welfare recipients to only 2 years of assistance at a time 2.) Imposed a lifetime limit on welfare assistance of 5 years. D. Welfare Controversies Reduces incentive to find paid employment Anti-marriage Non-Hispanic whites made up 30% of TANF recipients in the mid-2000s E. Other Forms of Govt Assistance Supplemental Security Income (SSI): A federal program established to provide assistance to elderly persons and persons with disabilities. Food Stamps: Benefits issued by the federal govt to low-income individuals to be used for the purchase of food; originally provided coupons, but now provided electronically. Earned-Income Tax Credit (EITC) Program: A govt program that helps low-income workers by giving back part or all of their Social Security taxes. F. Homelessness The homeless problem pits liberal against conservatives. Conservatives argue that there arent that many homeless people and that most of them are alcoholics,

drug users, or the mentally ill. In contrast, many liberals argue that homelessness is caused by a reduction in welfare benefits and by excessively priced housing. VI. Immigration A. Continued Influx of Immigrants High immigration rate offsets low birthrate and aging population Immigrants expand the workforce and pay taxes

B. Attempts at Immigration Reform VII. Crime in the 21st Century A. Crime in American History Revolution Eras crime rates = todays crime rates B. Crimes committed by Juveniles Decreasing C. School Shootings Annual probability of a school shooting is 1 in 11,520 D. The Cost of Crime to American Society Very super expensive E. The Prison Population Bomb 2008 U.S. prisons held 2.3 million ppl. 2/3 in state/federal prisons F. Federal Drug Policy G. Confronting Terrorism

Chapter 16 Terms
1. Domestic policy: All of the laws, government planning, and government actions that affect each individuals daily life in the United States. 2. Medicare: A federal health-insurance program that covers U.S. residents older than 65. The costs are met by a tax on wages and salaries. 3. Medicaid: A joint state-federal program that provides medical care to the poor. The program is funded out of general government revenues. 4. National Health Insurance: A plan to provide universal health insurance under which the government provides basic health-care coverage to all citizens. In most cases, the program is funded by taxes on wages or salaries. 5. Single-Payer Plan: A plan under which one entity had a monopoly on issuing a particular type of insurance. Typically, the entity is the government, and the insurance is the basic health coverage. 6. Environmental Impact Statement (EIS): A report that must show the costs and benefits of major federal actions that could significantly affect the quality of the environment. 7. Energy policy: Laws concerned with how much energy is needed and used 8. Income Transfer: A transfer of income from some individuals in the economy to other individuals. This is generally done by govt action. 9. In-Kind Subsidy: A good or servicesuch as food stamps, housing, or medical care provided by the govt to low-income groups. 10. Temporary Assistance to Needy Families (TANF): A state-administered program in which grants from the national govt are used to provide welfare benefits. The TANF program replaced the Aid to Families with Dependent Children (AFDC) program. 11. Supplemental Security Income (SSI): A federal program established to provide assistance to elderly persons and persons with disabilities. 12. Food Stamps: Benefits issued by the federal govt to low-income individuals to be used for the purchase of food; originally provided coupons, but now provided electronically. 13. Earned-Income Tax Credit (EITC) Program: A govt program that helps low-income workers by giving back part or all of their Social Security taxes. 14. Incarceration Rate: The number of person held in jail or prison for every 100,000 persons in a particular population group.