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

2. 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

3. 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.

4. 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.

5. 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

6. Controlling the Economy

7. 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

8. 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

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