Structure of the Executive Branch as it Supports the President Executive Branch

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 Each of these is 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 Are experts in their fields The President does not know everything about everything – surrounds self with people who do have expertise in a particular area 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 Purpose Examples 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

Helping Mr. President with the Economy Fiscal Policy Monetary Policy Using government taxing and spending to influence the economy Controlled through government budgeting Influences consumer and government spending Using the money supply and interest rates to influence the economy Controlled by the Federal Reserve (FED) Chair is appointed by the president 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 Influences consumer spending

Helping Mr. President with the Economy Both fiscal and monetary policy decisions are made to influence the economy Fiscal: Government may raise or lower taxes Monetary FED may increase or decrease amount of money circulating FED may increase or decrease interest rates on loans Want to encourage economic GROWTH Demonstrated by: Increased consumer spending Increase in GDP Decrease in unemployment rate

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