Biz and Gov't Readings

7/30/2019 Biz and Gov't Readings

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Business and Government Required Readings

Flanagan: Campaign Strategy

The central principle of campaign strategy is that, in a world of scarce resources and

legislated spending limits, it is necessary to focus spending where it will do the

most good.

A campaign is a collective action project that seeks to coordinate the activities of people

over a period of time to reach a predetermined objective.

There is no such thing as a universal campaign model -> meaning a political campaign is

always waged within a set of specific rules.

Rules are important in the general institutional setting of the political system, the

specific details of the electoral system (majority/proportional), and the

regulatory framework for conducting the election (regulated by Elections

Canada)

The Institutional setting is the arrangement of political institutions, that of which makes a

huge difference in overall campaigning (municipal campaigns). Deciding to

address the needs of a vast group of people in a large sector or a small group of

people in a minor sector is key.

The Electoral system. When majority government is not forseen, parties are encouraged

to 'narrowcast' and continue to campaign toward core supporters. You may also

want to keep communication lines with other parties to create a coalition

government, in turn creating a majority.

The regulatory framework is democracies rules they establish for the conduct of the

campaign. Some countries prohibit TV or Internet campaigning.

Party Objectives Liberal, Conservative and NDP's objectives are always to win and gain seats toward a

majority government.

Other parties however may run for any of the following (in order of importance)

* majority gov't

* minority gov't

* become official opposition

* become a recognized party (12 seats)

* elect one member to legislature

* get enough votes to recieve government fundingDefining Geographic Coalition

For strategic purposes, parties characterize the 'triage of seats' as follows

* Seats that are safe for your party

* Battleground ridings (seats you may lose)

* Hopeless seats for your party

Rule of Ten states your party can get a maxiumum of 10% more voter share than

previous election

Star candidates are people who have a previous career in something else and are well


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known by public

Concentration of Resources on battleground ridings is essential

Concentration of Resources can mean

* transferring extra money

* offering organizational assitance

* Tilting media buy (heavier advertising)

* Leader visits

* Direct voter contact program

Defining a Demographic Coalition

the 'triage of voters' for demographic coalition is

* core supporters

* swing voters

* confirmed opponents

Strategists determine which people are able to be persuaded and spend their time and

money on them rather than the core supporters of other parties whom may not be

worth it

Strategy and Mechanics of Persuasion

Barack Obama had one of the best of all time with the 'change' campaign

Delacourt, Maryland. From Sales to Marketing

- When a politician connects with the voters, we call him or

her a good retail politician.

- Marketing is often used as a synonym for selling, but

theyre different things. In politics, as in business,

marketing is what happens when the product shapes itself

around the consumers demands often before it even hits

the sales floor or the ad campaign. Its the attempt to give

the people what they want, sometimes before they know

they want it

MOP = market oriented party

SOP = sales-oriented party

POP = product-oriented party

Malloy. Is There a Democratic Deficit in Canadian Legislatures and Executives? Paul Martin, in 2003, identified the goal of restoring Parliament as the centre of decision

making and renewing the capacity of Parliamentarians to shape national policy

He spoke of the democratic deficit, that required a change in the balance of power

Aimed at key issues of Canadian politics- power relations between parliament, cabinet

and prime minister

Prime minister and premiers are known as First Ministers

First Ministers elect cabinet who are responsible for different departments

The first minister and cabinet are the executive


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Three Components of Parliament:

1. House of Commons (lower house)

2. Senate (higher house)

3. Governor General (representing the crown)

Canada: The first minister and cabinet are supposed to have seats in the legislature and to

be able to survive any motion by the legislature that it has no confidence in the

government. Known as responsible government

USA: separation of powers, meaning cabinet and first minister do not sit on legislature;

congress.

Canada = parliamentary

USA = presidential

Legislature

House of Commons is the heart of the Canadian Political System

1. Approves all laws

2. Central forum to scrutinize and hold government accountable

Provinces also have assemblies

House of Commons has 308 members (MP's)

Senate has 105 (Senators)

Provincial vary in size (smallest PEI, 28 and largest Quebec, 125)

The House of Commons has a Question period for civilians to ask questions and

Answer Period

Party Discipline

Trustee vs Delegate Debate (who the legislators represent)

Trustee: legislators use their own best judgement to decide what is best

Delegate: Vote the way their constituents tell them to

In reality, they act not solely on one model, they follow their political party PARTY DISCIPLINE = the expectation that the elected party members will vote with

their party

Functions of Legislatures

Three Main Roles:

1. Law and Policy Making

> Approves and scrutinizes PUBLIC POLICY rather than initiating policies

> consider bills proposed by government

> Is such thing as member private bills; rarely pass

2. Accountability and Scrutiny Canadian system emphasizes responsibility of the governments accountability (question

period)

3. Representation

Symbolic and Functional

focus on women and minorities in legislature so that everyone is represented

Still dominated by men

More women may mean more women-friendly legislation?

The Territorial Governments


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NW Territories, Nunavut abide by Consensus-Style Government

Yukon is much like other provinces

Consensus-Style Government is rooted in Aboriginal culture that stress discussion and

consensus

Called consensus-Style because operated through parliamentary procedures still

The Senate

Senate are appointed by PM, not elected

Senate has difficulty asserting legitimacy for several reasons

Conflicts of interest, laziness, urged to abolish

Originally a place for regional representation

Reform Idea: Triple-E Senate, should be elected, different numbers in each region

Executives: First Ministers and Cabinets

Prime Minister is not head of state, symbolic figure of the nation

Head = monarch

Monarch are appointed and therefore do not touch legislature

Most Important power of First Ministers is appointing cabinets, serve as a collective

decision making body

Also control appointment of senior public servants (judges)

Also appoint senators, foreign ambassadors, governor general, lieutenant-governors of

each province, commissioners of each territory

Ministers are appointed on the amateur principle, meaning they dont need a

background portfolio (businessman as minister of education)

Deputy minister = top public servant in the department

Cabinet Management Styles

Until the 1960s governments functioned as conglomerates and departmentalized.

Worked well with smaller government, simpler communications, most issuesseemed to fit within single departments

Institutionalized Cabinets begain in welfare-1960s with more complex government. More

committees and coordination of work

Ministers and Their Departments

Do not appoint personal staff

Staffed by public servants, serve whichever government comes into power

Patronage = the practice of granting government jobs or contracts on the basis of political

loyalty rather than merit

Ministerial Responsibility Ministers are responsible for everything that goes into their portfolios

About answering and explaining (Question Period)

Public Service Anonymity = the principle that public servants do not take either public

credit for services or public blame for problems in their departments

Resign only for own actions

Concentration of Power

Four Possible Options for Reform of Institutions and Distribution of Power

1. Reduced Party Discipline


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- Legislators given more freedom to vote according to own conscience and beliefs or of

their constituents

- More freedom and resources to operate independently for monitoring accountability and

developing policy

2. Electoral Reform

- Create a system that awards seats more in relation to the votes each party recieves with

more minority governments and parties

- more coalitions

- Proportional Representation = greater powers to party leaders

- Reform fixed election dates

3. Senate reform

- challenge legislative power

1. 4. Citizen Engagement

2. - incorporating citizens more directly in the processes of governments , sharing

information and decision making power over policy and programs.

3. - Challenge centralized power

Historical Foundations Liberal Political EconomyClassical Political Economy

origin coincideds with emergence of Capitalism

Adam Smith Wealth of Nations = first book to lay out model, nature, structure, and

workings of capitalist system

Each inidividual pursuing his own self interest is led by invisible hand to promote

intentions - Adam Smith

According to Smith, the self-serving behaviour of individuals deriving from the natural

and universal human instinct for self preservation and self advancement benefits

not only those concerned but also the whole society

Process should take place without outside intervention

Liberal theory today still retains these teachings/values

Accumulation of Capital (profits) >>> the growth propelling force for the economy

Refer to textbook for additional highlights

Benefits and Costs of Government Inverention Lipsey

Two extreme views of Canadian Economy

1. Stronghold of Free Enterprise (millions of people in a race for the almighty dollar) 2. Business's, people and workers in slow web of governanment regulation

Neither is accurate

How Markets Coordinate

Various markets are coordinated by the price system in an unplanned, decentralized

fashion

Profits and losses play a key role in coordinated market response

Changes is prices and profits, resulting from increasing scarcities and surpluses, lead to a

response by both consumers and producers


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These responses tend to correct the shortages and surpluses as well as change market

signals of price and profits

Features of a Market Economy:

1. Voluntary Response to Market Signals

2. Limited Information Required for Individuals

3. Coordination will occur under any market structure

The Case for Free Markets

The formal defense: allocative efficiency, self-interest will determine optimal outcomes

The informal defense: applies to market structures of imperfect competition, has 4

arguments:

1. Free markets are flexible and provide automatic coordination of the actions of

decentralized decision makers

2. The pursuit of profits which is central to free market provides a stimulus to innovation

and growth

3. Free markets are self-correcting, disequilibrium is temporary

4. Free markets permit a decentralization of economic power

The Case for Government Intervention

Markets do not always work perfectly, results of 5 sources of market failure are:

1. Monopoly (prices too high for consumers)

2. Externalities (pollution= producer does not pay social cost, therefore not motivated to

avoid. Producers will produce more than what is allocatively efficient)

-- Coase Theorem: describes theeconomic efficiencyof an economicallocationor outcome in thepresence ofexternalities.

3. Public Goods (National defense, market will not produce because available to public

regardless)

4. Information Assymetrics (one party manipulates another using personal expertisecausing moral hazard, adverse selection, principal agent problems)

5. Failure to achieve social goals

Changing distribution of income is a role may be desired for government intervention

Government Intervention

Microeconomic Policy Tools (used to alter unrestricted workings of free market system,

to better allocation of resources and distribution of income)

1. Public Provision

2. Redistribution

3. Regulation 4. Structuring Incentives

Costs and benefits must be considered for government intervention

Costs: a) direct government costs, b) costs imposed directly and indirectly on parties

affected, c) costs on third parties

Costs are seldom negligable and usually large

Possibility of government failure must be weighed against market failure

Neither possible nor efficient to correct all market failures
http://en.wikipedia.org/wiki/Efficiency_(economics)http://en.wikipedia.org/wiki/Efficiency_(economics)http://en.wikipedia.org/wiki/Efficiency_(economics)http://en.wikipedia.org/wiki/Allocationhttp://en.wikipedia.org/wiki/Allocationhttp://en.wikipedia.org/wiki/Externalityhttp://en.wikipedia.org/wiki/Externalityhttp://en.wikipedia.org/wiki/Externalityhttp://en.wikipedia.org/wiki/Allocationhttp://en.wikipedia.org/wiki/Externalityhttp://en.wikipedia.org/wiki/Efficiency_(economics)


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Lyons : The Politics of Economics

The Right Wing View

Believe that economic prosperity is best promoted by free markets, minimal government

interference

Emphasize:

1. Private enterprise

2. Incentives

3. Efficiency

4. Creation of Wealth

The Left Wing View

Stress the importance of economic security and a fair distribution of income

To provide prosperity and equality, government must intervene in the economy

Particularly, to redistribute income from wealthy to poor

Right vs Left

Theory and evidence show that neither wing is necessarily outright better for the

economy

A blend is the best, to get the good of the free market, while rectifying disadvantages

Long term has been left, but since the late 70s, a shift to the right has occurred

Into The Millenium Graham Taylor

Read chapter

Macroeconomic Policy --

Read Chapter

Social Policy

Key Terms

Legitimization The purpose (marxist) of social reforms and welfare spending in capitalist

societies

Low-income cut off lines (LICOS) Income levels used by statistics Canada, not as 'poverty

lines' but to qualify the numbers and characteristics of individuals and families falling into the

lowest level of income category defined in relative terms and taking into account current

overall standards of living

Progressive Taxes

Forms of taxation, such as personal income tax, in which the tax rate increase with one's

income

Redistributive payments the transfer of money from those who can afford to pay to those whoa

are in need


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Regressive taxes- Taxes, such as sales and property taxes and the GST, that weigh more heavily

on those with lower incomes because the amount of tax paid is not determined by income (not-

marginal)

Business Regulation

Regulation of social and economic activity is one of the principal functions performed by

governments in all industrialized countries

In Canada, pervasiveness of regulation is apparent

The Concept:

When government intervenes, five instruments may be used:

1. Persuasion Where government tries to convince business to do something voluntarily,

no rewards or penalties

2. Expenditures governments try to alter business behaviour through subsidies, loans, tax

concessions or financial incentives

3. Taxation government uses taxes, tariffs, and other compulsory payments as a financial

levy on business activity

4. Regulation government directs business behaviour through mandatory rules and

sanctions, ultimately enforced through state coercion

5. Public Ownership government takes a business out of private hands

Types:

Divided into two broad types:

1. Economic

a) Prices and Rates of Return (regulate chargeable prices)

b) Entry (restrict new competitors)

c) Exit (Prevent from getting out)

d) Output (Limitations on quanity of production)

2. Social Regulation

a) Health and Safety (consumer goods, handling, quality control)b) Environmental (pollution)

c) Fairness (advertising truth, disclosure, minimum wage, accurate labelling)

d) Cultural (restriction on foreign ownership)

Reasons:

1. Business Needs (continue to be profitable)

2. Public Pressure (environmental)

3. Bureaucratic Initiative (those directly involved)


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Regulatory Agencies:

Canadian Radio- Television and Telecommunications Comission (CRTC)

The National Transportation Agency (NTA)

National Energy Board (NEB)

Building the Just Society-- Read Chapter

Documents

Biz and Gov't Readings