108 Glossary
What Is Public Policy?
public policy the broad strategy government uses to do its job; the relatively stable set of purposive governmental behaviors that address matters of concern to some part of society
Categorizing Public Policy
distributive policy a policy that collect payments or resources broadly but concentrates direct benefits on relatively few
free-market economics a school of thought that believes the forces of supply and demand, working without any government intervention, are the most effective way for markets to operate
libertarians people who believe that government almost always operates less efficiently than the private sector and that its actions should be kept to a minimum
redistributive policy a policy in which costs are born by a relatively small number of groups or individuals, but benefits are expected to be enjoyed by a different group in society
regulatory policy a policy that regulates companies and organizations in a way that protects the public
Policy Arenas
entitlement a program that guarantees benefits to members of a specific group or segment of the population
Medicaid a health insurance program for low-income citizens
Medicare an entitlement health insurance program for older people and retirees who no longer get health insurance through their work
safety net a way to provide for members of society experiencing economic hardship
Social Security a social welfare policy for people who no longer receive an income from employment
Policymakers
bottom-up implementation a strategy in which the federal government allows local areas some flexibility to meet their specific challenges and needs in implementing policy
Congressional Budget Office the congressional office that scores the spending or revenue impact of all proposed legislation to assess its net effect on the budget
policy advocates people who actively work to propose or maintain public policy
policy analysts people who identify all possible choices available to a decision maker and assess the potential impact of each
top-down implementation a strategy in which the federal government dictates the specifics of public policy and each state implements it the same exact way
Budgeting and Tax Policy
debt the total amount the government owes across all years
deficit the annual amount by which expenditures are greater than revenues
discretionary spending government spending that Congress must pass legislation to authorize each year
excise taxes taxes applied to specific goods or services as a source of revenue
Keynesian economics an economic policy based on the idea that economic growth is closely tied to the ability of individuals to consume goods
laissez-faire an economic policy that assumes the key to economic growth and development is for the government to allow private markets to operate efficiently without interference
mandatory spending government spending earmarked for entitlement programs guaranteeing support to those who meet certain qualifications
progressive tax a tax that tends to increase the effective tax rate as the wealth or income of the tax payer increases
recession a temporary contraction of the economy in which there is no economic growth for two consecutive quarters
regressive tax a tax applied at a lower overall rate as individuals’ income rises
supply-side economics an economic policy that assumes economic growth is largely a function of a country’s productive capacity