For my advanced policy paper, I will be using the consumer expenditure survey. The survey for 2009 was released this past week by The Bureau of Labor and Statistics. The data describes the income of Americans and details their buying habits. The survey can help to answer such questions as: How much does an American making $32,000 a year spend on household appliances; How much does the average American spend on eating out, etc. The Bureau of Labor & Statistics has posted the excel file, but it is not yet available in SPSS format. Attached is the 2008 survey, provided by the ICPSR:
2008 Consumer Expenditure Survey
I want to answer whether or not Congress should extend the Bush tax cuts. Historically, consumer spending has been the largest part of GDP. It is our spending that drives the economy forward. Despite the recession, spending continues to make up the majority of our gross domestic product calculations. The data will tell us who the largest spenders are in the economy. If those at the higher end of the income spectrum are spending less proportionally than the rest of Americans, should we really extend their marginal tax-rate at its lower amount? Conversely, if only wealthier Americans are purchasing goods like automobiles, do we need the purchase of higher-end goods to move the economy forward?
I'd also like to research how people have responded to normal tax rates in the past. Since this is an extension of a tax cut, and not technically a raise in the marginal tax-rate, I'd be interested in knowing how spending differed between the Clinton years and the Bush years immediately before and after changes in tax policy. Where would you go to find information on how people's behavior changes as a result of tax policy? The savings rate of Americans has risen during the recession. Is it possible that the tax-cut extension will only create larger savings and an increase in debt payments? Where can I go to get more information of consumer behavior during recessionary times?
Saturday, October 9, 2010
Saturday, September 25, 2010
Incrementalism and Regulatory Policies
Incrementalism
Charles Lindblom outlined the classic model of policy making that includes a careful debate of values, research, and a selection among well thought-out alternatives that address the agreed upon issue. Lindblom attacks this as an unrealistic and rarely utilized approach to policy making. He argued that incrementalism is the way to affect change through policy making. We will get to where we need to be through small steps that may or may not be agreed upon by the whole.
Gay rights in the United States has been a long struggle. It continues as a battle in courts, churches, human-resource offices and voting booths. Fifty years ago, one could not imagine our country as a place that allows homosexuals of any state to adopt children, share health benefits, and even marry. Those who fight for these rights would never have received them if they had approached it by taking an "all-or-nothing stance." It was incrementalism and small policy fights that won homosexuals those rights. In another fifty years it will be incrementalism that will have won them the right to fight (openly) in the military and have their marital unions recognized by the entire United States.
Regulatory Policy
In his 1964 essay, Theodore Lowi outlines the different areas of policies as distributive, redistributive and regulatory policy. Lowi notes that regulatory policy can be distinguished from other policies because they determine "who will be indulged and who deprived." The recent economic crisis has led to a populist uprising in favor of increased banking regulation. In July of this year, Congress and the President responded by passing The Wall Street Reform and Consumer Protection Act.
CBS News Summarizes the Wall Street Reform and Consumer Protection Act
The financial reform bill seeks to create a consumer protection agency charged with protecting citizens through oversight of the banking sector, including company policies of credit card companies and mortgage lenders. In addition to oversight, the bill regulates the actions of financial companies by restricting the people to whom they can loan money.
This is classic regulatory policy according to Lowi. He writes, "regulation is obviously only one of several ways governments seek to control society and individual contact." The Wall Street Reform act is attempting to control society by prohibiting those who cannot afford loans from borrowing more than they can afford. The government does this by creating legislation that limits companies in the financial sector from creating loans for those people. In addition, the bill was created and passed through Congress, whom Lowi sees as the classic actor in regulatory policy.
Charles Lindblom outlined the classic model of policy making that includes a careful debate of values, research, and a selection among well thought-out alternatives that address the agreed upon issue. Lindblom attacks this as an unrealistic and rarely utilized approach to policy making. He argued that incrementalism is the way to affect change through policy making. We will get to where we need to be through small steps that may or may not be agreed upon by the whole.
Gay rights in the United States has been a long struggle. It continues as a battle in courts, churches, human-resource offices and voting booths. Fifty years ago, one could not imagine our country as a place that allows homosexuals of any state to adopt children, share health benefits, and even marry. Those who fight for these rights would never have received them if they had approached it by taking an "all-or-nothing stance." It was incrementalism and small policy fights that won homosexuals those rights. In another fifty years it will be incrementalism that will have won them the right to fight (openly) in the military and have their marital unions recognized by the entire United States.
Regulatory Policy
In his 1964 essay, Theodore Lowi outlines the different areas of policies as distributive, redistributive and regulatory policy. Lowi notes that regulatory policy can be distinguished from other policies because they determine "who will be indulged and who deprived." The recent economic crisis has led to a populist uprising in favor of increased banking regulation. In July of this year, Congress and the President responded by passing The Wall Street Reform and Consumer Protection Act.
CBS News Summarizes the Wall Street Reform and Consumer Protection Act
The financial reform bill seeks to create a consumer protection agency charged with protecting citizens through oversight of the banking sector, including company policies of credit card companies and mortgage lenders. In addition to oversight, the bill regulates the actions of financial companies by restricting the people to whom they can loan money.
This is classic regulatory policy according to Lowi. He writes, "regulation is obviously only one of several ways governments seek to control society and individual contact." The Wall Street Reform act is attempting to control society by prohibiting those who cannot afford loans from borrowing more than they can afford. The government does this by creating legislation that limits companies in the financial sector from creating loans for those people. In addition, the bill was created and passed through Congress, whom Lowi sees as the classic actor in regulatory policy.
Thursday, September 9, 2010
Assignment 2 - Shulock and Hird
Shulock Article:
a) Briefly describe the two views of policy-making that Shulock outlines in her article.
a) Briefly describe the two views of policy-making that Shulock outlines in her article.
Shulock outlines the Traditional and Interpretive/Alternative views of policy analysis. The Traditional view holds that policy analysis is a tool for choosing among alternatives in an effort to solve problems. The interpretive/alternative view holds that policy analysis is used to engage the public and promote participation. Policy analysis is but one part of the policy-making process.
b) In your opinion, which of these views of policy-making is most accurate? Why?
I agree with Shulock’s findings and opinions regarding the alternative view. Policy analysis is a part of the process, creating a discourse for discussion. Those with the power of decision making do not choose from a set of alternatives provided to them by policy analysts, but instead use the information to help inform their decisions, using it in concert with a wide variety of other types of information resources.
c) Post a link to a newspaper article that demonstrates an example of policy-making that supports your opinions expressed in part (b) above. Briefly explain why this supports your views from part (b).
The U.S. Food and Drug Administration (FDA) is set to make a decision on whether or not to allow the sale of genetically-modified salmon to be sold. The alternative view is supported because the FDA is looking at a number of groups and statistics to help inform its decision. Policy analysis for different interest groups is just part of the information being used by the agency; public opinion and health-related effects are also being considered in the FDA's decision of whether or not to allow the salmon. The policy analysis assists citizens and agencies to become more informed and raises the level of debate on the topic.
Hird Article:
a) What does Hird conclude about the use of policy analysis in decision-making?
Hird concludes that policy analysis from nonpartisan policy analysis organizations (NPROs) is an important source of information for legislators. That being said, it is not considered the overwhelming influencer of policy-related decision-making. The influence of policy analysis from NPROs is dependent upon the size of the NPRO. They can be used as information resources, regardless of size.
b) Are you convinced by his research and his argument? Why or Why not?
I was convinced by Hird’s argument. State legislators have many influences with which to make their decisions. Policy analysis by NPROs is only one of many tools legislators have to make their decisions. Hird finds states without NPROs still use policy analysis to aide their decision-making process, showing that it is not necessary for policy selection. Hird and Shulock both find that policy analysis is used more as a tool to inform decision-making than it is to dictate decisions.
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