Government policy is the broad area of laws, regulations, court decisions and local ordinances that govern many aspects of people’s lives. It is the avenue through which public officials and experts work to tackle societal challenges like fostering economic growth, lowering inequality, safeguarding natural resources and preparing for projected climate change risks.
Policymaking is often depicted as a neat, predictable process in which the government finds out about a problem and then examines the problem to find the right solutions, writes them into law and implements them. However, it is more complicated than that because there are numerous individuals and organizations involved in policy making. They are pursuing different goals and sometimes compete or contradict each other. They are also influenced by different actors and their goals, including lobbyists, special interest groups, corporations, and the media.
The policymaking process is further affected by social and cultural contexts. For example, the current debate about legalizing marijuana and same-sex marriage reflects the changing attitudes about personal freedom in the US. The economic context also influences policymaking, as shown by the increasing public support for raising the minimum wage.
Government policy has a direct impact on our everyday lives in the form of taxes, subsidies and spending plans. It also affects our behaviour through influencing what we buy and how we behave by directing incentives or imposing limits. Generally speaking, direct government action that involves money can be classified into 2 subsections: making something (Make) or buying it (Buy). It can also be classified into indirect actions that involve money which influence our behaviours by imposing taxes and subsidies on certain types of activities (Oblige) or by making certain behaviours illegal (Prohibit). Policymaking is an ongoing activity. Once a policy is in place it has to be monitored and evaluated. If it is not working as expected, it needs to be modified or terminated.