This essay and accompanying research briefly summarizes how public policy is made, the effectiveness of policies and its main features in recent years in two areas: (i) economic distribution and poverty; and (ii) foreign affairs.
How Policy Is Made. Public policy toward the distribution of economic income and wealth and the problem of poverty is made by the interaction of a confusing welter of public and private individuals, institutions and interest groups. The president through his budget and other legislative proposals can initiate action in these areas but Congress through its power of the purse holds most of the trump cards.
Government responsibility for social welfare programs is highly fragmented, not only between the executive and legislative branches but also within them, and between federal, state and local governments. Since the 1980s, Congress has devolved more and more responsibility in this area to the states and localities.
Overall Effectiveness. Under President Franklin Roosevelt's New Deal, the first steps were taken to establish a social safety net for the poor, Social Security, unemployment compensation and various public assistance programs. In 1944, FDR pledged "an economic bill of rights for all Americans, including decent housing, education, and health care" (Chafe 84). These goals have only been partially realized, and hardly at all as a result of public policy initiatives undertaken since the 1960s.
Due to the post-World War II boom, nearly 60 percent of Americans achieved middle class incomes by 1960, as compared with 31 percent in 1929 (Chafe 111). In real terms, only 22.1 percent of families earned less than the poverty level of $3,000 per annum in 1960 vs. 34 percent in 1947 (Chafe 112). Federal government policies during the presidency of Harry Truman, including the GI Bill which paid for veterans' higher education and subsidization of their mortgage costs, played important roles in cr...