Overview

Public Policy is the “doing” part of government. It’s not just speeches and elections; it’s the actual laws, regulations, and programs that affect your life.

Core Idea

The core idea is problem solving. Society has a problem (pollution, poverty, crime). Policy is the government’s attempt to fix it.

Formal Definition

The principled guide to action taken by the administrative executive branches of the state with regard to a class of issues. The Policy Cycle:

  1. Agenda Setting (Identifying the problem).
  2. Formulation (Designing the solution).
  3. Adoption (Passing the law).
  4. Implementation (Running the program).
  5. Evaluation (Did it work?).

Intuition

It’s social engineering.

  • Nudge: Subtle policy changes (like making organ donation opt-out) to influence behavior.
  • Carrot and Stick: Incentives (tax breaks) and punishments (fines).

Examples

  • Healthcare: Obamacare (ACA) vs. Single Payer. Different policy approaches to the same goal (health).
  • Environment: Carbon Tax vs. Cap and Trade.
  • Education: Standardized testing vs. school choice.

Common Misconceptions

  • Misconception: Politicians write the laws.
    • Correction: Most policy is written by unelected bureaucrats, experts, and lobbyists. Politicians just vote on it.
  • Misconception: Good policy always wins.
    • Correction: Politics often kills good policy. (e.g., A carbon tax is economically efficient but politically toxic).

Applications

  • City Planning: Zoning laws.
  • Public Health: Vaccination mandates.

Criticism and Limitations

  • Unintended Consequences: Policies often backfire (e.g., Prohibition created organized crime).
  • Implementation Gap: Great ideas often fail because the bureaucracy can’t execute them.

Further Reading

  • Agendas, Alternatives, and Public Policies by John Kingdon
  • Nudge by Thaler and Sunstein