Public policy, also commonly referred to as domestic policy, is a system of laws and regulations that reflect the actions of the government. It is the collective attitude, ideas, and opinions of the citizens of the country and individual states, and it influences the enactment and interpretation of legislation. Public policy reflects the course of action taken by the government to address the needs of society and solve its problems, encompassing governance and administration and public finance. It also reflects the inaction of the government in areas that the government refuses to regulate or govern. Essentially it is what the government does and does not do in the areas of public health, safety, and welfare.

Rooted in Values, Morals and Principles

Public policy is derived from the values, morals, and principles of citizens. Public policy law is how the legislature and courts act in what they believe to be the best interests of citizens and the general public. While public policy laws are written and enacted by Congress and state legislatures, public policy can also be implied and vary within the federal, state, and municipal levels of government. Public policy changes and fluctuates frequently because it is rooted in the values that tie society together, and those values vary in cultures and change over time. Accordingly, policy analysis is used to formulate public policy and to evaluate its effectiveness. Public policy laws are most effective when they reflect the most generally accepted values and beliefs of society.

Present throughout Society

Public policy is prevalent in various areas of society, including the following to name a few:

• Education policy
• Social welfare policy
• Health care policy
• Criminal justice policy
• Social policy
• Economic policy
• Environmental policy
• Energy policy

Economic Policy part of Public Policy

Public policy results in various federal and state social welfare programs to achieve societal goals, including:

• Welfare
• Medicare and Medicaid
• Public education
• Social Security
• Pensions
• Unemployment compensation
• Supplemental Security Income
• Family protective services

Because economic policy is an important component of public policy, budget analysis plays a vital role in the public policy making process. Social welfare programs provide assistance, including financial assistance, to citizens who are unable to support themselves or are disadvantaged members of society. The programs are aimed at improving living conditions within society and bettering human welfare.

Competing Interests

Public policy is influenced by the beliefs, values, and morals of the members of society. Therefore, public policy is often comprised of numerous divergent interests, including the religious, political, and economic beliefs of society's members. These competing interests within society cause individuals and groups to try to influence and shape public policy by using the methods of education, advocacy, and interest groups. Interested members of society often try to influence public policy by lobbying and using political pressure. Interested individuals can influence public policy by personally advocating their position or increase their advocating power by joining an organization that shares their beliefs.

Enactment of Legislation

The public policy process begins with choosing which problems need to be addressed. Once problem are identified, the agenda-setting step takes place. After agendas have been set, the interested parties, such as interest groups and organizations, begin their advocacy for the ideologies they want to become policy. Policy-making usually entails translating preferences into policy through the enactment of legislation. The enactment of legislation requires the reconciling of conflicts and differences between the interested parties. Once a policy has been implemented, policy evaluation methods need to be set up. Policy evaluation ensures that policies, programs, and public services are delivered as effectively and efficiently as possible. Although policy success or failure may be difficult to measure, some common methods used to evaluate a policy's effectiveness include:

• Public opinion polls
• Evidence related to national statistics
• Academic research
• Systematic reviews
• Economic appraisal
• Systematic audits
• Regulatory impact assessments