Whether we’re discussing the use of weapons of mass destruction (WMD), the number of refugees allowed into the United States each year, or how long a person can be held without charge in an immigration detention facility (detention policy), government officials and politicians are constantly trying to create ways to change people’s lives for the better. The process for creating such policies is often lengthy and requires extensive discussion, debate, and compromise. Policymakers may not have all the answers themselves, but they do try to harness ideas and resources from all corners of society.
These policies can take the form of laws, enactments, rules, or procedures. They may be used to assist with subjective or objective decision making, or they may be designed to encourage specific outcomes — like increasing efficiency in the workplace, for example. Regardless of their purpose, they can be highly influential.
In the United States, public policy can be created at the federal, state, or local level. Typically, policies created at one level of government must be consistent with those of the higher levels. The federal level, for example, has the power to preempt a state from implementing policies that conflict with federal policy in certain areas.
Governments often use fiscal policy to stimulate the economy when output slows or declines. For example, by reducing taxes or expanding spending, governments can increase economic activity during downturns while ensuring that their debts and deficits are managed. Depending on their circumstances, countries may also pursue other objectives of fiscal policy, such as macroeconomic stabilization, which involves maintaining stable inflation and exchange rates.
