Structure of the Executive Branch as it Supports the President

Federal Bureaucracy Large, complex administrative structure Handles “everyday” business of an organization Found in both public and private sectors Three Main Features 1. Hierarchical authority 2. Job specialization 3. Formalized rules Within the Executive Department: Executive Office of the President Executive Departments (The Cabinet) Independent Agencies

Executive Departments – federal departments in the executive branch, each led by a “secretary” that will serve in the President’s Cabinet. Each one has a “specialty” on which it is focused.

The Cabinet Made up of the heads of the Executive Departments Called “Secretaries” (usually) Provide advice and guidance and are experts in their field Has expanded over time Washington: 4 cabinet members - Secretary of State Thomas Jefferson, Secretary of Treasury Alexander Hamilton, Secretary of War Henry Knox, and Attorney General Edmund Randolph.

Executive Agencies Examples Purpose Carry out the “daily function” of the national government Enact laws that have been passed the legislative process Do NOT have Cabinet status EPA NASA FDA FCC Interstate Commerce Commission Peace Corps Federal Corporations: FDIC, USPS, Amtrak

Controlling the Economy

Helping Mr. President with the Economy FISCAL POLICY HOW IT NFLUENCES THE ECONOMY Using government taxing and spending to influence the economy HOW IT’S CONTROLLED Controlled through government budgeting WHAT IT INFLUENCES Influences consumer and government spending ACTIONS GOVT. MAY TAKE Government may raise or lower taxes GOALS ENCOURAGE GROWTH IN THE ECONOMY Increased consumer spending Increase in GDP Decrease in unemployment rate

Uses the money supply and interest rates to influence the economy MONETARY POLICY HOW IT INFLUENCES THE ECONOMY Uses the money supply and interest rates to influence the economy HOW IT’S CONTROLLED Controlled by the Federal Reserve (FED) Chair is appointed by the president WHAT IT INFLUENCES Money Supply: how much money is in circulation Influences level of inflation Influences consumer spending Interest Rates: the “extra” money that consumers must pay on a loan ACTIONS GOVT. MAY TAKE Fed may increase or decrease amount of money in circulation Fed may increase or decrease interest rates on loans GOALS Growth in the economy: Increased consumer spending Increase in GDP Decrease in unemployment rate

What Happens If…. The Government raises taxes? The FED lowers the interest rate? What Happens If…. The FED increases the money supply?