Policy analysis in government budgeting and domestic foreign relations

Economic Policy

These are the actions that the government is involved in the economic field covering systems such as setting interest rates and government budgets as well as the labor market, national ownership, and many other areas of government involvement in the fiscal conditions of the country.

Government economic policies are often influenced by international institutions such as the International Monetary Fund or World Bank as well as their particular political beliefs

There are various types of economic policies and strategies including macroeconomic stabilization policies that work towards keeping the money supply growing within the constraints of inflation; trade policy - which refers to tariffs, trade agreements, and so forth; policies designed to generate economic growth; policies for distribution of income and property; regulation policies (for monitoring large companies); anti-trust polices; industrial policies; and technology-based economic development policies. Each deal with different aspects of economic control and regulation.

The government goals are to impede inflation, encourage employment, and generate economic growth. Other objectives are also considered such as military spending and nationalization. Periods of recession that cause inflation, unemployment, and civil discontent are challenges to the congress and president in this area and influence the creation and implementation of policies (Plosila, 2004).

2. Public Policy

This is the branch of policies devised by government that are created and implemented to act as legislation of the state. In general, this is known as the national and sub-national constitutional law with conjunctive legislation (such s the U.S. Federal Code) Added to this is judicial interpretations and regulations that attach themselves to the constitutional law throughout American history. This may also be seen as regulations and laws surrounding the constitution, in conjunction with legislative acts and judicial decisions.

Government interest in this area involves the shaping and assessing as well as reviewing of its traditional and recent legislation as influenced by interest groups and numerous individuals in the day-by-day running of the state. Policy makers are influenced to review and assess previous legislation by advocacy of others. At times, this generation of advocacy tactics and tools (influenced and instigated by education, lobbying, or political pressure) causes government to modify, add to, or eliminate certain strata of law.

Reforms in the law alter the legislative environment for the President and Congress. Alternate will of the people and conflict over decision may pose problems for the President and Congress as happened in the 1960s with the Civil Rights Movement when the country was divided over according democratic rights to Blacks. Decision of such conflicts may influence political party and presidential popularity hence affecting possibility of his reelection.

3. Foreign and domestic policy

Domestic policy refers to the decisions, laws, and programs that the government makes in reference to its people. It is decisions that are solely applicable to the running of the country. Domestic policy extends to areas that include business, education, health care, energy, law enforcement, economic concerns, social welfare, natural resources, and personal rights and freedom.

As impacts Congress and the President, creating and implanting as well as maintaining smooth flow of these policies is no easy matter since people's opinion differs regarding acceptance of these policies. Those who are more conservative, for instance, would want greater order, tradition, and security, whilst Liberals would tend towards innovation, change, government efforts to help the deprived, and greater equality. These differences in opinion may rock a government that holds different views.