American Dilemmas Models and Economic Approaches.
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Transcript of American Dilemmas Models and Economic Approaches.
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American DilemmasModels and Economic
Approaches
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Learning Objectives
• Critically analyze social problems by identifying value perspectives and applying concepts of sociology, political science, and economics;
• Use knowledge and analyses of social problems to evaluate public policy, and to suggest policy alternatives, with special reference to questions of social justice, the common good, and public and individual responsibility.
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Paper Proposal
• Due in class on 7/8
• 5% of your final Grade
• Involves submitting 2 Parts– Worksheet– 2 page paper
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What are Perspectives/Models
• Methods that each discipline uses to understand social problems
• Simplified representations of some aspect of the real world– Simplify and clarify difficult problems– Help understand what is important and
unimportant
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SOCIOLOGICAL MODELSThings Decision Makers do not use
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Sociological Theories
• Sociological theories– Functionalism– Conflict Theory– Symbolic Interactionism
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Functionalist Perspective
• Society is a system that is made up of a number of interrelated elements, each performing a function that contributes to the operation of the whole.
FamilyFamily
LegalLegal
MediaMedia
Educ.Educ.
Gov.Gov.
Econ.Econ.
Social Institutions
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Conflict Perspective
• Society consists of different groups who struggle with one another to attain the scarce societal resources that are considered valuable, be they money, power, prestige, or the authority to impose one’s values on society.
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Symbolic Interactionism
• Interactionism focuses on everyday social interaction among individuals rather than on large scale societal structures.
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Sociological Explanations of Violence
• Functionalist:– Violence increases when social institutions are
weakened– Solution: Strengthen social institutions (family, schools)
• Conflict:– Violence is a response to inequalities in society– Solution: Reform political and economic institutions to
change inequality.
• Symbolic Interactionist:– Violence is learned behavior– Solution: change societal values which encourage
violenceCopyright © Allyn & Bacon 2010
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ECONOMIC PERSPECTIVESFun From the Dismal Science
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Rationalism
• Cost- benefit• Cost Effectiveness• Risk assessment
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Cost Benefit Analysis• What is it?
• How Do you Conduct it?
• • • How do you put a value on Human life? •
•
• •
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Cost-Benefit II
• Advantages
• Criticisms of C-B
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Cost Effectiveness
• How it Works
• Fixed-Budget Analysis • Slot Machine strategy • TX Dot stimulus money
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Cost Effectiveness II
• Fixed- Effectiveness
• Criticisms
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Risk Assessment
• What is it?
• How does it Work?• What are its' criticisms?
– Type I error – Lowering Risk is Expensive
• Spillover Costs • Spillover costs II
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Rational/Public ChoiceA Cross-over Model
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Rational/Public Choice
• The application of economic analyses to public policymaking
• In economics, people pursue their self-interests in the market.
• In policy you try to maximize your personal benefits
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Public Choice Actors
• Can be applied to any unit of analysis (state, person, interest group, etc)
• People will join collective organizations when it benefits them.
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Incrementalism
• Select policies based on the existing order.
• Policy is a continuation of past government activities with only incremental modifications
• A policy conservative and expedient way of making change.
• Downsides?
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Political Feasibility
• What is it
• How Does it work
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Economics
The Dismal Science
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Economics
• Fiscal Policy
• Monetary Policy
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The Economy as a series of sectors
• Primary
• Secondary
• Tertiary
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The Modern U.S. Economy
• A Shift Away from the First Two Sectors• A Service Based Economy
– Affluent service jobs– Welfare service– Service Jobs
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The Economy as a series of “Collar” Jobs
• White Collar• Blue Collar• Pink Collar• Green Collar
Collar does not always equate with income
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Theories of Economics
• Classical Theory
• Keynes
• Supply-side
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Key actors in Economic Policy
• We do not have a single economic policy• The federal government is the key player
here, why?– The Power to Tax– Regulate foreign trade – Coin Money and set its value
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States and municipalities are also Big Players
• They can also tax
• They can provide incentives for economic growth
• Provide services for its residents
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Economic Growth: Goal #1
• An Increase in the GDP each year
• More Money means more tax revenue
• “Crazy” Growth, however, is not a good thing
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Historical GDP Change
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Low Unemployment: Goal 2
• What is Unemployment
• Who does this Exclude?
• What it does not measure
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The Positive aspects of Low Unemployment
• More Tax Revenue
• Fewer people receiving benefits
• Lower Crime
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Unemployment in U.S.
• www.bls.gov
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Our Unemployment compared to other Nations
• Historically, it has been much lower
• Even in our poor economy, it is about the same as the EU region
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The Role of Unions
• Once 25% of workers, now ½ of that.
• Reasons for the Decline
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The Economic and Political Effect of Unions
• Union Workers earn 10% to 15% than non-union workers in similar occupations
• A large player in “special interest” politics
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Economic Goal 3: Low Inflation
• The Government wants low levels of inflation, why?
• Measured by the Consumer Price Index (CPI)
• How it has changed over time
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Goal 4: A positive Balance of Trade
• A Nation Wants to Export more than it Imports
• The United States is the reverse
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Why We have a deficit
• Where it comes from
• What are the reasons
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The Advantages and Disadvantages of a Trade Deficit
• Disadvantages
• Advantages
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Goal 5: Sound Tax Policy
• A sound tax policy should collect as much at it spends
• A sound policy does not disrupt the functioning of the economy
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Where to set the Tax Rate• http://www.youtube.com/watch?v=ZmxpftPFXZg&feature=related
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Types of Taxes
• Regressive
• Progressive
• Sin Taxes
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Our Tax Burden Is Lower than Most Nations
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The National Debt: The problem of our Tax Policy
• We accumulate annual budget Deficits
• We have to Pay interest on this
• We owe roughly 10 Trillion Dollars
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The Debt
• Disadvantages
• Advantages
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What to about it
• Raise Taxes
• Cut Spending
• Some Combination of both
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Raising Taxes
• A Political Albatross
• We like Tax Cuts instead
• We Like sin taxes- but we are running out of these
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Raising Taxes on Who?
• Soak The Rich
• Make the Poor Chip in
• Close Loopholes
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Change How We Tax
• Add a consumption or VAT Tax
• Add a Flat Tax
• Try A “Fair Tax”
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Cut Spending
• There is No Political Gain to do so
• Cut Back on Entitlements
• Reduce Discretionary Spending
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Pay the Light Bill