Political values refer to basic beliefs about politics and appropriate government relationships to private activity, especially economic activity. Links to economic activity and political values are relevant to a discussion of public administration because of increasing governmental responsibility in regulating business and industry. In general, the United States is regarded politically as a liberal democracy and economically as a capitalist system. Liberal democracy is a fundamental form of political arrangement founded on the concepts of popular sovereignty and limited government.

A capitalist system is an economic system in which the means of production are owned by private citizens. Popular sovereignty is a form of government by the ultimate consent of the governed. It implies some degree of popular participation in voting and other political actions, although this does not necessarily mean mass or universal political involvement. Limited government refers to devices built into the Constitution that effectively limit the power of government over individual citizens.

The specific vehicle for popular rule has been representative democratic government. Initially, Americans emphasized legislative representation, which is stressed by the Constitution. Representation is a principle of legislative selection based on the number of inhabitants or amount of territory in a legislative district. Adequate, fair, and equal representation has become a major objective of many who feel they were denied it in the past and now seek greater influence, particularly in administrative decision making.

Representation is a principle of legislative selection based on the number of inhabitants or amount of territory in a legislative district. Adequate, fair, and equal representation has become a major objective of many who feel they were denied it in the past and now seek greater influence, particularly in administrative decision making. Concern for political representation and demographic representativeness in administrative organizations has diminished in more recent years. These subtle changes in meaning have cumulatively made it more difficult to determine whether democratic or administrative values are being maintained.

Public discontent with affirmative action, immigration policies, and government spending has prompted groups in many states to challenge these policies by placing them on the ballot to decide their future through public initiative and referenda.