Government at Work: The Bureaucracy Chapter 15

INDEPENDENT AGENCIES Section 4

Why Independent Agencies Some do not fit well within existing departments. – GSA (General Service Administration) responsible for construction of government buildings. Protection from partisan politics – Social Security Administration, Federal Election Commission, Commission on Civil Rights Poor Planning Some have peculiar or sensitive nature.

Types of Independent Agencies Independent Executive Agencies Independent Regulatory Commissions Government Corporations – Some are only independent in the sense that they are not under the 15 executive departments. – Others are controlled more by the head of the agency than the president.

Independent Executive Agencies Some are extremely important government agencies – NASA, EPA (Environmental Protection Agency) – Operated much the same way as Cabinet departments. Some do important work and are very visible – Peace Corps, Small Business Administration Most are small and operate far from the limelight – National Indian Gaming Commission, American Battle Monuments Commission

Examples of Independent Agencies NASA (National Aeronautics and Space Administration) – Scientific Research, Military Research, Contributes to many Scientific Fields (Physics, Astronomy, Environmental Science) The Office of Personnel Management – Oversees the 2.7 million federal employees – The Civil Service – Today employees of the federal government are career workers who are hired according to strict rules and regulations.

Independent Regulatory Commissions Largely beyond the reach of Presidential direction and control – 12 agencies created to monitor or police important aspects of the nation’s economy. – Intended to be independent – Each headed by a board or commission (5-7 people) appointed by the president and confirmed by the Senate. – Quasi-Legislative and Judicial powers Rules and regulations of Commissions have force of law

Examples of Independent Regulatory Commissions Federal Reserve (the Fed) – Formulates and administers the nation’s credit and monetary policy by regulating the money supply. Securities and Exchange Commission (SEC) – Regulates securities and other financial markets, investment companies, and brokers. Equal Employment Opportunity Commission (EEOC) – Enforces laws prohibiting discrimination based on race, ethnicity, religion, sex, national origin, disability, or age in employment.

Government Corporations Subject to Presidential direction and control. Established by Congress to carry out certain businesslike activities. – Examples: FDIC (Federal Deposit Insurance Corporation) – Insures individual bank deposits up to $100,000 in member banks. USPS (U.S. Postal Service) – Delivers mail to U.S. households and businesses

Government v. Private Corporations Government Corporations are set up similarly to private corporations. – Run by a board of directors with a general manager. – Produce income which is put back into the agency’s programs There are also many differences – Congress establishes the purpose and functions of each. – Officers are public officials. – Government owns the stock of the corporation.