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Policy Making: Political Interactions Congress, the President, the Cabinet, advisers, agency bureaucrats, federal and state courts, political parties, interest groups, the media...All of these groups interact to make political decisions in the United States. Public policy is a goal-oriented course of action that the government follows in dealing with a problem or issue in the country. Public policies are based on law, but many people other than legislators set them. Individuals, groups, and even government agencies that do not comply with policies can be penalized. This complicated process goes through a predictable series of steps: The power to formulate and implement policy is often divided between several entities. Defense policy is a good example: after the bombing of Pearl Harbor, shown here, President Franklin Roosevelt addressed a joint session of Congress to ask the body to declare war against Japan. 1. Recognizing the problem. At any given time, many conditions disturb or distress people, such as unsafe workplaces, natural disasters like tornadoes and earthquakes, crime, pollution, or the cost of medical care. But all disturbing conditions do not automatically become problems. People have to recognize that government can and should do something about them. For example, most citizens probably do not expect government to prevent hurricanes. However, they may expect government to help hurricane victims through quick relief actions. 2. Agenda setting. An agenda is a set of problems that government wants to solve. Usually there are so many of them that they must be prioritized, with some problems getting earlier and more attention than others. Agenda setting may respond to pressure from interest groups, political parties, the media, and other branches of government. Agendas usually are reshaped when a new president takes office or when the majority party in Congress changes after an election. A crisis such as war, depression, natural disasters, or a tragic accident, almost always re-prioritizes issues. 3. Formulating the policy. At this stage, usually several conflicting plans from various political interests take shape. Various players — the president and White House aides, agency officials, specially appointed task forces, interest groups, private research organizations, and legislators — may take part in formulating new policy. Around the turn of the 20th century, muckrakers and concerned citizens brought to light the unethical practices rampant in the food and medicine industries and pressed the government to take action. The result was legislation such as the Pure Food and Drug Act of 1906, and eventually the creation of regulatory agencies like the Food and Drug Administration. 4. Adopting the policy. Once various plans are presented, one policy is accepted by the decision-makers. In many cases, a policy is adopted when Congress passes a law. Policy adoption may also take place when the president signs an executive order or when the Supreme Court rules on an important case. Policy is often built in a series of small steps passed over time by different players, and eventually, a complex policy emerges. 5. Implementing the policy. Most public policies are carried out by administrative agencies in the executive branch, although sometimes the courts get involved in implementing decisions they make. Agencies use many techniques to see that policy is carried out. Sometimes they punish people and organizations who do not comply with policy. For example, a state can take a driver's license away from a bad driver. Or the government may offer incentives, like tax breaks for contributing to the presidential election campaign. They even appeal to people's better instincts, such as using the slogan, "Only you can prevent forest fires." Formulating policy involves weighing options, leading to dilemmas. This cartoon pokes fun at Teddy Roosevelt: Roosevelt was called a "trust buster" because of his strict antitrust policies, but he stays the hand of Attorney General Knox because he needs business contributions for his presidential campaign. 6. Evaluating the policy. Policy makers often try to determine what a policy is actually accomplishing or whether or not it is being carried out efficiently. Often the evaluation process takes place over time with contributions from many of the interacting players. Most evaluations call for some degree of change and correction, and inevitably, at least some of the players will disagree. The whole process then begins again, starting with re-recognition of the problem. Decision-making, then, is a continuous process with numerous people participating. At any given time, government is at various stages of policy-making in a never-ending quest to provide solutions to countless societal proble George Washington's Farewell Address in 1789 contained one major piece of advice to the country regarding relations with other nations: "avoid entangling alliances." Those words shaped United States foreign policy for more than a century. Today some Americans think that Washington's words are still wise ones, and that the United States should withdraw from world affairs whenever possible. In truth, however, the United States has been embroiled in world politics throughout the 20th century, and as a result, foreign policy takes up a great deal of government's time, energy, and money. If isolationism has become outdated, what kind of foreign policy does the United States follow? In the years after World War II, the United States was guided generally by containment — the policy of keeping communism from spreading beyond the countries already under its influence. The policy applied to a world divided by the Cold War, a struggle between the United States and the Soviet Union. With the collapse of the Soviet Union in 1991, containment no longer made sense, so in the past ten years, the United States has been redefining its foreign policy. What are its responsibilities, if any, to the rest of the world, now that it has no incentive of luring them to the American "side" in the Cold War? Do the United States still need allies? What action should be taken, if any, when a "hot spot" erupts, causing misery to the people who live in the nations involved? The answers are not easy. Foreign Policy Goals To investigate the nature of current United States foreign policy, the logical source is the State Department, whose job it is to define and direct it. Foreign policy goals include the following: • • Preserving the national security of the United States • Promoting world peace and a secure global environment • Maintaining a balance of power among nations • Working with allies to solve international problems • Promoting democratic values and human rights • Furthering cooperative foreign trade and global involvement in international trade organizations Examining these goals closely reveals that they are based on cooperation with other nations, although "preserving the national security of the United States" implies possible competition and conflict. Who Makes Foreign Policy? Henry Kissinger served as National Security Adviser and Secretary of State under Presidents Nixon and Ford. He was a key figure in articulating U.S. foreign policy during the Cold War, and remains one of the foremost authorities on international relations and diplomacy. As with all policy making, many people and organizations have a hand in setting United States foreign policy. The main objective of foreign policy is to use diplomacy — or talking, meeting, and making agreements — to solve international problems. They try to keep problems from developing into conflicts that require military settlements. The President almost always has the primary responsibility for shaping foreign policy. Presidents, or their representatives, meet with leaders of other nations to try to resolve international problems peacefully. According to the Constitution, Presidents sign treaties with other nations with the "advice and consent" of the Senate. So the Senate, and to a lesser extent, the House of Representatives, also participate in shaping foreign policy. The Secretary of State and many other officials of the State Department play major roles in setting foreign policy. The Secretary of State is usually the President's principal foreign policy adviser, and he or she is the chief coordinator of all governmental actions that affect relations with other countries. The Foreign Service consists of ambassadors and other official representatives to more than 160 countries. Ambassadors and their staffs set up embassies in the countries recognized by the United States and serve as an American presence abroad. The embassies are part of the State Department, and they protect Americans overseas and are responsible for harmonious relationships with other countries. Presidents can play a prominent role in the formation of foreign policy by brokering negotiations between disputing parties. Here, President Clinton meets with Palestinian President Yasser Arafat and Israeli Prime Minister Yitzhak Rabin. The National Security Council, as part of the Executive Office of the President, helps the President deal with foreign, military, and economic policies that affect national security. It consists of the President, the Vice President, the Secretary of State, the Secretary of Defense, and others that the President designates. The National Security Adviser — who coordinates the Council — sometimes has as much influence as the Secretary of State, depending on his or her relationship with the President. The Central Intelligence Agency (CIA), one of the best-known agencies that sets foreign policy, gathers, analyzes, and transmits information from other countries that might be important to the security of the nation. Although the CIA is notorious for its participation in "spy" work and "top secret" investigations, much of its work is public and routine. The CIA Director is appointed by the President and confirmed by the Senate. United States foreign policy has changed dramatically from George Washington's day. Although Americans always pay attention to the advice of their revered founder, the world is of course not the same. The many people that shape American foreign policy today accept the fact that the United States is a member of a world community that cannot afford to ignore the importance of getting along. Defense policy The United States used to have a War Department. Until 1947 one of the President's cabinet-level positions was the Secretary of War, who headed the War Department. President Harry Truman renamed them the Secretary of Defense" and the Department of Defense, a telltale sign of changing times. The most destructive war of modern times — World War II — had ended only two years before, and nuclear weapons were introduced at its conclusion. The hope was that countries would "beat their swords into plowshares," according to the famous biblical statement that was to be engraved into a wall of the United Nations building in New York City. Still, a United States defense policy is necessary as a second level of protection in case diplomacy fails to solve international problems. Who Makes Defense Policy? UN economic sanctions have been in effect in Iraq since the end of the Gulf War. Iraqis regard then U.S. President George Bush as a criminal who has brought suffering to the innocent civilian population. The President takes the lead in defense policy. This initiative is based on the constitutional powers as "Commander in Chief" of the armed forces. The Constitution grants Congress the power to declare war, a power with much less meaning in today's world. The last time that the United States officially declared war was December 8, 1941, the day after the Japanese attacked Pearl Harbor. Yet America has fought full-scale wars in Korea, Vietnam, and the Persian Gulf without actually declaring war. Today the President is able to order covert — or secret — operations to avoid full-scale military involvement. If that option fails, the President, sometimes with the vote of Congress, can try coercion, or tactics that force countries to "behave." Examples are economic boycotts, breaking diplomatic relations, and restricting tourist and business travel between countries. The United States has applied all of these tactics to Cuba since Communist leader Fidel Castro took over in 1959. The President may also avoid congressional involvement in decision-making by endorsing limited military "interventions" without asking for a war declaration. The Department of Defense is the President's main source of advice on military policy. Its headquarters is the Pentagon, which houses about 25,000 military and civilian personnel. True to the wishes of the founders, the Secretary of Defense — who heads the department — is always a civilian. However, all three military departments — the Army, the Navy, and the Air Force — are under the general supervision of the Secretary of Defense. The Joint Chiefs of Staff is a five-member advisory body to the President, the National Security Council, and the Secretary of Defense. It includes the Chiefs of Staff of the three military departments and the commandant of the Marines. The President, with the consent of the Senate appoints all of the service chiefs, as well as the chair. Threats to National Security In a 1993 review of the mission and needs of the Defense Department, Secretary of Defense Les Aspin identified four major threats to U.S. national security: • • The rapid growth of weapons of mass destruction, such as nuclear bombs • Regional conflicts in the Middle East, Korea, and elsewhere • The emergence of anti-democratic forces in Russia • The erosion of American economic strength Courtesy of the United Nations In addition to nuclear weapons, the threat of chemical or biological warfare is a central issue in the formulation of post-Cold War defense policy. Even though the United States economy is considerably stronger than it was in 1993, all four threats remain important today. Since the Cold War ended in the early 1990s, Defense Department expenditures have come under closer scrutiny, with many people demanding that less be spent for defense programs. However, the Defense Department concluded that the United States needs sufficient military forces to conduct military operations against two "rogue nations" — such as Iraq, Iran, Libya, and North Korea — at the same time. The Department also sees a number of other states, such as China or India, as potential problem states. Just as developing a coherent foreign policy is problematic in these post-Cold War days, so is the question of defending the country against possible danger from outside its borders. The avoidance of war, as indicated by the 1947 name change from "Department of War" to "Department of Defense" today holds the highest priority, and the hope that the United States can play a role in limiting violent upheavals around the world is reflected in both its foreign and military policies. 11c. Economic Policy With the New Deal, President Franklin D. Roosevelt aimed to reverse the effects of the Great Depression through heavy government spending. The Works Progress Administration (WPA) was one of many federal agencies he created to generate jobs and stimulate the stagnant economy. Does the government direct the economy, or does the economy direct itself? Until the 20th century the country abided by the laissez-faire policy, which required a free market with little intervention from government. With the Great Depression came Keynesian economics, or the opposite belief that the government should manage the economy. Today, United States economic policy lies somewhere in between — government should regulate and sometimes manage, but should allow a free market whenever possible. Political and business leaders disagree on how much control is enough. Monetary Policy Monetary policy is the government's control of the money supply. The government can control how much or how little money is in circulation by the amount that they print and coin. If too much money is out there, it tends to cause inflation, or the devaluation of the dollar. Too little money causes deflation, which can lead to a recession. The powerful arm of government that controls the money supply is the Federal Reserve System, which is headed by the Federal Reserve Board. The most important way that the "Fed" controls the money supply is by adjusting interest rates — high rates discourage borrowing money, which causes less inflation. The "Fed" can lower interest rates to stimulate borrowing, which encourages consumer spending. Taxation has long been a sensitive subject in American politics. In colonial times, tax collectors were often vilified and subjected to verbal and even physical abuse. The Federal Reserve Board's seven members are appointed by the President and are approved by the Senate for 14-year, nonrenewable terms. The President may not remove them from office, so they function quite independently from any controls from the executive branch. The chair is elected by the Board for four years, and may be reelected. The Board heads the Federal Reserve System, which was created by Congress in 1913 to regulate the lending practices of banks. It consists of 12 regional banks, which in turn supervise a total of about 5,000 banks across the United States. Fiscal Policy Fiscal policy affects the economy by making changes in government's methods of raising money and spending it. • • • Alan Greenspan, chairman of the Federal Reserve Board, is the most visible figure in the sphere of monetary policy. His reports and recommendations help shape the financial lives of millions of people in the United States and abroad. • Raising money. The most important way that the United States raises money is through taxation. About 40 percent of the government's total tax collections come from income taxes from individuals and businesses. Another 32% come from social insurance taxes, such as Social Security, Medicare, and unemployment compensation. Other sources of income are excise taxes on goods such as liquor, tobacco, and gasoline, estate and gift taxes, and tariffs. The government also may borrow money to finance its expenses. For example, it borrows money when it sells treasury bonds to citizens. • Spending money. The government now spends more that $1.5 trillion a year, as provided in the federal budget. Each year, the President submits a federal budget for approval by Congress for money to be spent starting in October of that year. More money is spent in three categories than in any others. The largest amount of money goes to entitlement programs, such as Social Security pensions for older Americans, unemployment insurance, Medicare, and federal retirement pensions. The second largest amount goes for national defense. Today about 16 percent of the total budget goes for defense, in contrast to 28 percent in 1987, when the Cold War was still on. The third largest amount — about 15 percent — pays interest on the national debt. Other expenditures are highway construction, education, housing, and foreign aid. Fiscal policy also can affect the money supply and can be used to stimulate spending or curb inflation. Tax cuts tend to stimulate consumer spending by leaving more money in the hands of American citizens. Tax hikes could be used to slow inflation by removing money from the hands of consumers. The government can also curb inflation by cutting government expenditures. Within these two broad categories — monetary and fiscal policies — lies a great deal of room for disagreement. Some argue that government should be more "hands off" than it is and that taxes should be reduced. Others believe that the government should more actively control the economy and that taxes should be used to pay down the national debt. Many disagree on the amount of control that government should have, but no one questions the importance of government's setting a strong, effective economic policy. 11d. Social and Regulatory Policy Food stamps can mean the difference between getting by and going hungry. But the question of how to distribute them and other forms of welfare support has become a hotly contested issue. How much? For how long? And, most importantly, who is eligible? Unalienable rights. Life, liberty, and the pursuit of happiness. Does the right to pursue happiness include access to a free public education? Do all Americans have an unalienable right to health care under this happiness umbrella? Should the unemployed be assisted in their times of need? Early American leaders did not interpret the "pursuit of happiness" this broadly. But 20th century Americans have continually expanded the notion of a pursuit of happiness to include these and an array of other social concerns. Consequently, much of the modern political agenda revolves around determining social policy. Social Policy Welfare currently has a bad name in American politics, often conjuring images of irresponsible recipients who take welfare payments from the government instead of working. Conservatives charged that continual government support for the unemployed provided a disincentive to find work and fostered a culture of dependency. Although most liberals opposed ending welfare payments outright, there was bipartisan agreement that reform was needed in the mid-1990s. The greatest myth about welfare is the amount the federal government actually spends on relief checks. Throughout the 1990s, payments of this nature typically comprised about 3 to 4% of the nation's annual budget. When President Lyndon Johnson enrolled former President Harry Truman as the first beneficiary of the Medicare program in 1965, he created an entitlement program that constitutes a significant chunk of the federal budget. Actually, the most extensive single welfare program is Social Security — a social insurance plan for the elderly. Employees and employers contribute to a fund through payroll taxes, and virtually everyone who contributes for at least ten years is eligible for payments. Most Americans support the program as long as it's called "Social Security" and not "welfare." Other "entitlement" programs include Medicare, Medicaid, Aid to Families with Dependent Children, and food stamps. Theodore Roosevelt was a "trust buster" who believed that the government needed to oversee big business to make sure its practices were in line with the public interest. This cartoon from 1904 shows how the storms of government investigation — a power that Roosevelt gave the Bureau of Corporations — have downed the airship of "High Finance" and shaken the trusts into disarray. should be responsible for providing One of the most nettlesome political issues of the 1990s was the health care controversy. Throughout the decade, between 30 and 40 million Americans were uninsured for medical fees in any given year. In 1993, Congress defeated President Bill Clinton's proposed plan to provide all citizens with basic insurance coverage for doctor fees, hospitalization, and prescription drugs. Conservatives deemed the plan as too expensive, with unforeseeable intrusion of the government into personal health care decisions. On the other hand, even most conservatives accept government's role in medical research and regulating food and drugs. The Public Health Service, headed by the Surgeon General, researches, gathers information, and monitors health care. The Food and Drug Administration regulates the labeling and processing of most foods, drugs, and cosmetics. The government actively regulates business, as seen in the recent antitrust suit filed by the Department of Justice against Microsoft. In its case, the government has enlisted a number of Microsoft's competitors to testify about the company's business practices. Public education is generally regarded as the responsibility of local communities, so the federal government's role in this area is limited. Today the majority of federal funds for education are directed to higher education, primarily in the form of student loans and grants. Since the 1950s, the federal government has provided funds for Grades 1-12, particularly for programs to upgrade science, language, and mathematics. Other programs, such as Head Start for preschoolers, focus on helping underprivileged children. Even so, the federal government today funds less than 10 percent of the total amount spent on education in the United States. The nation's natural resources are subject to government regulation. The Bureau of Land Management oversees the production and conservation of oil and gas, geothermal energy and helium (which is extracted from natural gas). Regulatory Policy While most Americans are proud of living "in the land of the free," in reality their lives are regulated by the government in many inconspicuous ways. Consider the American who starts her day with a little breakfast. Her food is regulated for purity and freshness, and appliances such as her coffeepot, her microwave, and her toaster must meet federal safety requirements. Her car, her children's school, and her place of work must all meet federal standards, and state and local governments may impose additional regulations. Her whole schedule revolves around time, which is regulated by the government. Eastern, Central, Mountain, and Pacific Standard Times are determined by the federal government. Federal regulations fall into three basic categories: • Regulating business. The national government began regulating business in the late 1800s in order to eliminate monopolies, businesses or groups that have exclusive control of an industry. Government now regulates a wide array of business practices, including the elimination of competition and fraudulent product offerings. • Regulating labor. Most labor policies have come about to protect the American worker. The government has promoted equal employment opportunities, safe and sanitary workplace standards, and fair bargaining practices between employer and workers. • Regulating the environment and energy. Environmental policy is the responsibility of many different government departments and agencies. Especially important is the Environmental Protection Agency, which enforces policies on water and air pollution, pesticides, radiation, and waste disposal. Energy policies, on the other hand, are coordinated by the Department of Energy, created in the late 1970s in the wake of worldwide oil and gas shortages. "Promoting the general welfare," as prescribed in the Preamble to the Constitution, is a tall order for the United States government today. New developments — such as corporations, immense labor pools, and environmental and energy problems — call for new solutions. American leaders of the 21st century must be increasingly creative to meet these challenges. 11d. Social and Regulatory Policy Food stamps can mean the difference between getting by and going hungry. But the question of how to distribute them and other forms of welfare support has become a hotly contested issue. How much? For how long? And, most importantly, who is eligible? Unalienable rights. Life, liberty, and the pursuit of happiness. Does the right to pursue happiness include access to a free public education? Do all Americans have an unalienable right to health care under this happiness umbrella? Should the unemployed be assisted in their times of need? Early American leaders did not interpret the "pursuit of happiness" this broadly. But 20th century Americans have continually expanded the notion of a pursuit of happiness to include these and an array of other social concerns. Consequently, much of the modern political agenda revolves around determining social policy. Social Policy Welfare currently has a bad name in American politics, often conjuring images of irresponsible recipients who take welfare payments from the government instead of working. Conservatives charged that continual government support for the unemployed provided a disincentive to find work and fostered a culture of dependency. Although most liberals opposed ending welfare payments outright, there was bipartisan agreement that reform was needed in the mid-1990s. The greatest myth about welfare is the amount the federal government actually spends on relief checks. Throughout the 1990s, payments of this nature typically comprised about 3 to 4% of the nation's annual budget. When President Lyndon Johnson enrolled former President Harry Truman as the first beneficiary of the Medicare program in 1965, he created an entitlement program that constitutes a significant chunk of the federal budget. Actually, the most extensive single welfare program is Social Security — a social insurance plan for the elderly. Employees and employers contribute to a fund through payroll taxes, and virtually everyone who contributes for at least ten years is eligible for payments. Most Americans support the program as long as it's called "Social Security" and not "welfare." Other "entitlement" programs include Medicare, Medicaid, Aid to Families with Dependent Children, and food stamps. Theodore Roosevelt was a "trust buster" who believed that the government needed to oversee big business to make sure its practices were in line with the public interest. This cartoon from 1904 shows how the storms of government investigation — a power that Roosevelt gave the Bureau of Corporations — have downed the airship of "High Finance" and shaken the trusts into disarray. Universal Health Care Do you think that the government should be responsible for providing universal health care to all U.S. citizens? Yes No One of the most nettlesome political issues of the 1990s was the health care controversy. Throughout the decade, between 30 and 40 million Americans were uninsured for medical fees in any given year. In 1993, Congress defeated President Bill Clinton's proposed plan to provide all citizens with basic insurance coverage for doctor fees, hospitalization, and prescription drugs. Conservatives deemed the plan as too expensive, with unforeseeable intrusion of the government into personal health care decisions. On the other hand, even most conservatives accept government's role in medical research and regulating food and drugs. The Public Health Service, headed by the Surgeon General, researches, gathers information, and monitors health care. The Food and Drug Administration regulates the labeling and processing of most foods, drugs, and cosmetics. The government actively regulates business, as seen in the recent antitrust suit filed by the Department of Justice against Microsoft. In its case, the government has enlisted a number of Microsoft's competitors to testify about the company's business practices. Public education is generally regarded as the responsibility of local communities, so the federal government's role in this area is limited. Today the majority of federal funds for education are directed to higher education, primarily in the form of student loans and grants. Since the 1950s, the federal government has provided funds for Grades 1-12, particularly for programs to upgrade science, language, and mathematics. Other programs, such as Head Start for preschoolers, focus on helping underprivileged children. Even so, the federal government today funds less than 10 percent of the total amount spent on education in the United States. The nation's natural resources are subject to government regulation. The Bureau of Land Management oversees the production and conservation of oil and gas, geothermal energy and helium (which is extracted from natural gas). Regulatory Policy While most Americans are proud of living "in the land of the free," in reality their lives are regulated by the government in many inconspicuous ways. Consider the American who starts her day with a little breakfast. Her food is regulated for purity and freshness, and appliances such as her coffeepot, her microwave, and her toaster must meet federal safety requirements. Her car, her children's school, and her place of work must all meet federal standards, and state and local governments may impose additional regulations. Her whole schedule revolves around time, which is regulated by the government. Eastern, Central, Mountain, and Pacific Standard Times are determined by the federal government. Federal regulations fall into three basic categories: • Regulating business. The national government began regulating business in the late 1800s in order to eliminate monopolies, businesses or groups that have exclusive control of an industry. Government now regulates a wide array of business practices, including the elimination of competition and fraudulent product offerings. • Regulating labor. Most labor policies have come about to protect the American worker. The government has promoted equal employment opportunities, safe and sanitary workplace standards, and fair bargaining practices between employer and workers. • Regulating the environment and energy. Environmental policy is the responsibility of many different government departments and agencies. Especially important is the Environmental Protection Agency, which enforces policies on water and air pollution, pesticides, radiation, and waste disposal. Energy policies, on the other hand, are coordinated by the Department of Energy, created in the late 1970s in the wake of worldwide oil and gas shortages. "Promoting the general welfare," as prescribed in the Preamble to the Constitution, is a tall order for the United States government today. New developments — such as corporations, immense labor pools, and environmental and energy problems — call for new solutions. American leaders of the 21st century must be increasingly creative to meet these challenges.

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