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Chapter13 - Chapter13 Domestic Economic Policy...

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Chapter 13 Domestic &  Domestic &  Economic  Economic  Policy Policy
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Domestic Policy Domestic policy  = all the laws, government  planning, and government actions that affect  the lives of American citizens Policies = created in response to public  problems or public demand for government  action Major policy problems = poverty, welfare,  crime, environment, social security Government response entails  policy trade- offs ; spending priorities; “you can’t have your  cake and eat it too.”
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Policy Making Process   Agenda building  – identifying a problem, getting it on  the agenda Policy formulation  – debate that occurs between  government officials, the public, the media, and in  campaigns Policy adoption  – selection of a strategy for  addressing a problem Policy implementation  – administration of the selected  policy (by bureaucrats, the courts, etc.) Policy evaluation  – public, officials and groups  determine if the selected policy has the desired impact
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Defining Poverty  Low-income poverty threshold in 2003 was  $18,300 for a family of four Poverty level has changed since then to  account for changes in the consumer price  index, enabling government to adjust the  poverty level by taking into account changes  in prices of goods and services Official poverty level based on pre-tax  income, but does not include in-kind  subsidies, like food stamps and subsidized  housing
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