(T1) Public Policy & Economics

Public Policy & Economics

Public Policy

What is Public Policy? Policy = the government's plan, or course of action, for addressing a problem. Public = it affects the people. Public Policy = a plan or idea on how to address an issue that impacts nearly everyone in the country.

Because it is focused on what is happening in within the country it is also known as Domestic Policy

Public Policy

Public policy is how the government - at all levels - affects your daily life. Think about your day so far. Have you done any of these things?

Used a crosswalk

Brushed your teeth

Have you breathed today?

Driven a car

Drank water

If you answered yes to any of these things, then the government's public policy has affected you.

Public Policy

Affects our daily life!

Brushing your teeth

The public policy involved in brushing your teeth can be from the water you use & where it comes from (state) to the safety regulations required to produce the toothpaste you're using (federal).

Driving

State governments set up public policies to get driver's licenses, and they also established traffic patterns and speed limits.

Crosswalk

When your city or town government decides its students need a safe way to cross the street, its public policy is to paint a crosswalk in front of the school.

Breathing

When the federal government makes a decision to improve the nation’s air quality, its public policy is to pass the Clean Air Act and reduce harmful emissions to give you clean air to breathe.

Every level of government makes public policy

Federal, State, Local

Regulations :

a type of law created to regulate or control people's actions and behaviors.

Social Regulations

Economic Regulations

Regulations that protect public interests such as health, safety, or the environment. They cover a range of rules, from anti-discrimination laws, hunting and fishing guidelines, seatbelt laws, to school attendance requirements.

These regulations are meant to control the behaviors of companies and industries. Their purpose is to prevent businesses from abusing or taking advantage of their customers. Some examples of this would be requiring nutrition labels on food, safety warnings on toys, and requiring different safety checks on products like cars and electronics.

Public Policy Scenario # 1

You are a member of Congress, read the scenario below and determine which option would be the best action to solve this issue.

The airline industry is in trouble. All the major airline carriers are in debt and say they may go out of business if they don't get help soon. The airlines claim the high cost of fuel and the price of new parts are to blame for their financial problems. They say the only way they can rebound is to raise the cost of airplane tickets and baggage charges. Economic experts worry that higher prices for airline tickets will cause fewer people to fly, which will only make matters worse.

Solutions?

Public Policy Scenario # 2

You are a member of Congress, read the scenario below and determine which option would be the best action to solve this issue.

Rural areas in the U.S. lack Internet access. This has limited people's access to jobs and health information and has caused students to fall behind in skills and knowledge. Internet providers say the cost of bringing internet access to rural areas is too high and will hurt their profits. Residents claim the providers are discriminating against them. Others say that without the internet, the economy in rural areas suffers greatly and causes people to be more dependent on government assistance.

Solutions?

Public Policy Scenario # 3

You are a member of Congress, read the scenario below and determine which option would be the best action to solve this issue.

Voter turnout in the U.S. is at an all-time low. Some people claim that the lack of participation is threatening democracy’s existence. They want the government to do something about it. Others claim that it’s up to the people to decide if they want to vote or not. They don’t think the government should do anything.

Solutions?

How is Public Policy enforced?

Congress

Law is assigned

to the government agency that specializes in that field. In this case, it would be the Food and Drug Administration (FDA)

Passes The Microwave Radiation Safety Act.

The President

Signs the Act into Law

How is Public Policy enforced?

Penalty

FDA

outlines the rules for safe microwave radiation & distributes rules to states and manufacturers

If the FDA finds an individual or abusiness has violated the rules, they can penalize them with a fine.

Inspection!

To ensure that their rules are followed, the FDA sends agents to inspect the manufacturers’ production plants.

Public Policy & Economics

economics = money

Whenever a government makes a decision, the decision affects people.

• The impact can be social, environmental, or economic.
• Nearly all laws and policies have an economic impact, like people's jobs, businesses, or how much money people have to spend.

• Public Policies also have an economic impact on how the government decides to spend taxpayers' money.

Cost-Benefit Analysis

Policymakers always need to take into account the possible economic impact of a new policy.

Policy Example:

Your city just created a new curfew for minors. All minors must be home between the hours of 10:30 PM - 5 AM.

Possible Economic impacts

Forbidding young people from staying out in public past a certain time may limit what after-school jobs they can have.

It may also lead to lower revenue (money from sales) for local restaurants, movie theaters, and shops because they aren't allowed out after a certain time without a guardian.

It may also require additional police on the streets for a while, to enforce the law.

These are some of the costs of the new policy

Cost-Benefit Analysis

Policymakers always need to tak into account the possible economic impact of a new policy.

Policy Example:

Your city just enacted a new curfew for minors. All minors must be home between the hours of 10:30 PM - 5 AM.

Possible Economic impacts (benefits)

Often, curfews are passed because of a rise in youth crime or a rise in dangers to youth because of crime. With a curfew, crime may go down.

Adult customers may feel safer, local businesses may attract more business, and thought may be better protected.

A reduction in crime would benefit society as a whole.

Cost-benefit analysis: Government policymakers weigh the costs against the benefits of a policy. If the costs outweigh the benefits, then the policy is probably not worth making. If the benefits outweigh the costs, however, it's probably a good policy to have.

Is it worth it?

That is the question government officials have to make at every level of government before they put a policy in place.

Case Study Example: Minimum Wage

In 1938, the Federal Government passed the Fair Labor Standards Act. This law created a minimum wage (the lowest amount a worker can be paid for an hour of work).

• The federal minimum wage was 75 cents per hour in 1949
• $2 per hour in 1974
• $5.15 per hour in 1997
• $7.25 per hour in 2009.

You can see it increased over the years, largely due to inflation, or the decreased value of the U.S. dollar. But what are the costs of having a federal minimum wage and increasing it?

Cost-Benefit Analysis of Minimum Wage

benefits

Costs

• Helps Workers: It makes sure workers get paid enough to buy food, clothes, and other important things.

• Fairness: It protects workers from being paid too little by their bosses.

• Boosts Spending: When workers earn more, they can spend more at stores, helping businesses grow.

• Higher Costs for Businesses: Small businesses might struggle to pay higher wages, which could lead to cutting jobs or raising prices.

• Fewer Jobs: Some companies might hire fewer workers to save money.

• Different Costs in States: In places where things are cheaper to live, the same minimum wage might be harder for businesses to afford.

CLICK HERE

Policies & Economic Impacts

You will do a cost-benefit analysis for a local issue and policy as needed. Click on the picture below

NO-KILL ANIMAL SHELTER

Establish a No-kill policy for stray animals

Issue:

Animal shelters in the City of Centerville often reach their capacity and the shelter has to euthanize stray dogs and cats that no one has adopted. Thousands of animals are euthanized every year, and no city ordinance (law) exists to stop or limit the practice. The current policy is that if enough shelter space does not exist for stray animals, paid shelter staff may euthanize them.

Euthanize: to end an animal's life in a relatively painless way.

CLICK HERE

Establish a No-kill policy for stray animals

New Policy Idea:

The city council should adopt a "no-kill policy" for animal shelters within city limits.

• The purpose is to end the euthanasia of thousands of cats and dogs and increase the number of households adopting pets.

This policy would mandate that animal shelters must: 1. Not euthanize any animal that is not terminally ill or a danger ot humans. 2. Work with local animal-welfare non-profit organizations and volunteers to ensure the health of all animals in shelters. 3. Expand their programs to offer low-cost pet adoptions across the city.

CLICK HERE

Cost-Benefit Analysis: No-kill policy for stray animals

1. Click on the button below to go to a simmulated City Council Meeting in School AI
2. Follow the prompts of the AI to present your ideas about this issue.
3. The AI will help you write a memo about the new policy and that is what you will submit in our course.

Enter School AI

What could the Government do?

What could the Government do?

What could the Government do?