With corporate profits at an all- time high, the "annual $92 billion in direct and indirect subsidies to businesses and private-sector corporate entities" (Slivinski, S. May 14, 2007) would provide the funding necessary to implement the proposal.
Policy invariably comes down to political positioning, and in this case the question becomes whether the strengthening of the middle class is a more important goal then subsidizing corporate coffers. In formulating the legislation the policy model provides a realistic approach for reaching a consensus on sustainable economic development. Sound policy depends on compromise and the belief that there is recognized agreement on the ostensible outcomes of the prescribed action. Formulation, implementation, and analysis then depend on a concrete and identifiable source of measurable criterion on which to base judgment.
A general criterion model provides four platforms from which to gauge the efficacy of the policy proposal: Economic (cost-benefit), Equity (social allocation of costs-benefits), Technical (effectiveness), and Political (acceptable to stakeholders) (California State University Long Beach. N.D.). Utilization of this model depends on the criteria and their measures as unambiguous. They should be relatively straightforward and simple to measure. Their application should produce uniform results, no matter who does the measuring of different alternatives. And repeated measurements of the same alternative should produce the same results, again, no matter who does the measuring. (California State University Long Beach. N.D.)
Evaluation of the policy under these conditions reveals a sound and fundamental approach to providing relief to the middle class.
On the economic front the cost of the program is met with revenues requisite to pay for its continued stability. The economic benefit of the program is considerable in its long-term effect on increasing savings for individuals, concomitant with an increase in capital stock for the economy, and a consistent channel of bond purchases for the U.S. Treasury. On the equity angle the allocation of the benefits comes to a large swath of Americans at the cost of reducing corporate welfare for a select few companies. The technical aspect demonstrates that the policy would be effective in its goal of increasing middle class Americans savings rates. Lastly, the political channel allows for policy makers to craft a...
No policy is perfect however, one that combines aspects of utilitarianism (the greatest good for the greatest number), with a mix of sound economic fundamentals will provide the best recipe for a successful implementation and outcome. The middle class in America is the foundation of our economic engine. These individuals are the consumers, entrepreneurs, and hardworking drivers of the resilient U.S. economy. With economic globalization there has been considerable pressure on the middle class in the U.S. which has negatively impacted the savings of this demographic. While the discussed policy prescription of modifying the Roth IRA does not tackle all of the challenges of the middle class it does provide a measured and sound response on the issue of retirement savings and security.
California State University Long Beach. (N.D.). Establishing Analysis Criteria. PPA 670
Policy Analysis. California State University Long Beach. Retrieved July 13, 2011 from http://www.csulb.edu/~msaintg/ppa670/p&sch5.htm
Fox, W., Bayat, S. & Ferreira, N. (2006). A Guide to Managing Public Policy. Juta & Company Limited. http://books.google.com/books?id=pHZczfNlk_gC&pg=PA67&lpg=PA67&dq=institutional+model+of+public+policy&source=bl&ots=Co_GsXMnO7&sig=KIlgzR2XVjVyawT5LJEzcTqOSVY&hl=en&ei=N3cdTu20DeT30gGu3oDNBw&sa=X&oi=book_result&ct=result&resnum=6&sqi=2&ved=0CEcQ6AEwBQ#v=onepage&q=institutional%20model%20of%20public%20policy&f=false
Nutting, R. (July 8, 2011). How the Bubble Destroyed the Middle Class. Yahoo Finance.
Retrieved July 13, 2011 from http://finance.yahoo.com/banking-budgeting/article/113086/bubble-destroyed-middle-class-marketwatch?mod=bb-budgeting
Slivinski, S. (May 14, 2007). The Corporate Welfare State:
How the Federal Government Subsidizes U.S. Businesses. Policy Analysis. Cato Institute. Number 592. Retrieved July 13, 2011 from http://www.cps-news.com/wp-content/corporate-welfare/The-Corporate-Welfare-State-How-the-Federal-Government-Subsidizes-U.S.-Businesses.pdf
Your Roth IRA Guide.com. (May 4, 2010). Compare the Roth IRA vs. Traditional IRA.
Your Roth IRA Guide.com. Retrieved July 13, 2011 from http://www.yourrothiraguide.com/compare-the-roth-ira-vs.-traditional-ira/
Public Policy and Health Increasing premium costs for managed care have considerable influence for America's workforce. The rise in the financial burden on the workforce to contribute to their health care plans to assist offset increasing premiums paid by business owners cause the workforce to drop the coverage. The number of the uninsured remains the most glaring evidence of the U.S. healthcare crisis. Regardless of opinion polls regularly depicting that a
Policy Studies The study of public policy gained significant importance in the late fifties and sixties. However, policy science did not come into existence all of a sudden. It started to emerge when social scientists started researches on a wide range of sociopolitical problems. After the World War II, significant developments were made in the areas of operations research, economics and social psychology. These developments proved to be helpful in formulating
Some small discounts in pricing is applied to anyone who purchases these day passes in advance, in bulk, but by and large users pay as they enter and use the roadways in central London (Santos and Shaffer 166-169; Litman 2). Within the first year, there were already impressive effects in London. Travel speeds were measured to be 21% faster than before the pricing scheme was implemented. Congestion was reduced by
public policy for reproductive health in Nigeria should not be without first recognizing the global issues that bear upon the country's public health system and the state of its people. Today the country continues to renew its effort in sustaining public health with vigorous plans and new programs that will be reviewed in this study. But any new proposal must also understand the depth of the country's problems and
Discuss the asymmetric informational problem that arises in the case of hourly loan officers issuing loans. Propose at least two proposals to minimize these concerns. One of the primary reasons that so many home loans were issued in recent years to individuals who were not sufficiently creditworthy to be able to make timely payments on those loans is that there was an ongoing condition of asymmetric information. The individuals seeking
CHIP: To Abolish or Not to Abolish The State Children Health Insurance Plan (SCHIP), commonly referred to as CHIP (Children's Health Insurance Plan), is an insurance plan run by the Department of Health and Human Services, and which administers funds to states to enable them provide quality insurance coverage to eligible children within their jurisdictions. To be eligible for CHIP, a child needs to be from a family whose level of