1. THE FEDERAL BUREACRACY Examining the “Fourth Branch”

2. bureaucracy literally means “rule by desks” government by clerks

3. bureaucracy Definition: an administrative system, especially in a government, that divides work into specific categories carried out by special departments of nonelected officials

4. The Growth of the Federal Bureacracy… The Spoils System The fed bur was originally drawn from an elite group of upper- class white males “to the victor belong the spoils,” Andrew Jackson- awarded federal posts to party loyalists

5. The Civil Service –The Pendleton Act (1883) created the fed civil service system, workers are selected according to merit, not party loyalty –The Office of Personel Management (OPM) Administers civil service laws and regulations Is in charge of hiring for most fed agencies

6. Federal and State Fed employees currently account for 3 percent of all civilian jobs # of federal government employees has remained constant since 1950 # of state and local gov employees has steadily increased since 1950 Block Grants have contributed to the widening gap between Fed and state employees by shifting resources from the fed to state/local govs Fed mandates have also shifted more responsibility to states, causing an increase in the number of their public employees

7. DON’T FORGET ABOUT MONEY PROBLEM!!!!!!!! Friendly reminder of a major problem! Pie Chart Can Christie give an executive order? Deficit Mandatory v. discretionary spending Entitlements- Social Security, Medicare, and Medicaid

8. Federal Spending for Mandatory and Discretionary Programs

9. Medicare, Medicaid and Social Security Spending, % of GDP, 2000-2080

10. The Federal Bureaucracy What does the federal bureaucracy do?

11. Characteristics of a Bureaucracy administration of government through departments consists of unelected often highly trained professionals task specialization hierarchical authority

12. Public Perceptions of Bureaucracies impersonal inclined to follow rigid or complex procedures may stifle effectiveness and innovation “red tape”

13. The Federal Bureaucracy is:  4 million employees; 2.8 million are civilians or “civil servants”  President only appoints 3% (patronage or political appointments)  15 cabinet level departments  200+ independent agencies with 2,000+ bureaus, divisions, branches, etc.  Biggest - Dept. of Defense, U.S. Postal Service, Veterans Administration  4 million employees; 2.8 million are civilians or “civil servants”  President only appoints 3% (patronage or political appointments)  15 cabinet level departments  200+ independent agencies with 2,000+ bureaus, divisions, branches, etc.  Biggest - Dept. of Defense, U.S. Postal Service, Veterans Administration

14. Functions of the Federal Bureaucracy 1. Implementation 1. Implementation - carry out laws of Congress, executive orders of the President 2. Administration 2. Administration - routine administrative work; provide services (ex: SSA sends social security checks to beneficiaries) 3. Regulation 3. Regulation - issue rules and regulations that impact the public (ex: EPA sets clean air standards) Source: http://www.pinkmonkey.com/studyguides/subjects/am_gov/chap6/a0606401.asp 1. Implementation 1. Implementation - carry out laws of Congress, executive orders of the President 2. Administration 2. Administration - routine administrative work; provide services (ex: SSA sends social security checks to beneficiaries) 3. Regulation 3. Regulation - issue rules and regulations that impact the public (ex: EPA sets clean air standards) Source: http://www.pinkmonkey.com/studyguides/subjects/am_gov/chap6/a0606401.asp

15. The Federal Bureaucracy Consists of 1.Cabinet Departments 2.Independent Executive Agencies 3.Independent Regulatory Commissions 4.Government Corporations

16. Federal Bureaucracy President Congress Executive Office of the President (Ex: OMB, NSC) Government Corporations (Ex: Amtrack, Postal Service) Independent Regulatory Commissions (Ex: FCC, SEC) Independent Executive Agencies (Ex: CIA, NASA) Cabinet Departments (Ex: State, Defense)

17. Organization of the Federal Bureaucracy Source: www.edmonds.wednet.edu/mths/ClassActivities/ Brzovic/policeymakersChapters12-16/

18. The Cabinet Departments The 15 cabinet departments headed by a cabinet secretary appointed by the president and approved by the Senate Each department “expert” in specific policy area Each department has its own budget Department of Homeland Security, created in 2002, is newest department

19. Secretary ---------------------------------- Deputy Secretary Under Secretary Science and Technology Under Secretary Information Analysis and Infrastructure Protection Under Secretary Border & Transportation Security Under Secretary Emergency Preparedness and Response Under Secretary Management Inspector General Director of the Secret Service (1) Commandant of Coast Guard (1) Director, Bureau of Citizenship & Immigration Services (1) General Counsel State and Local Coordination Special Assistant to the Secretary (private sector) National Capital Region Coordination Shared Services Citizenship & Immigration Service Ombudsman (1) Legislative Affairs Public Affairs Civil Rights and Civil Liberties Department of Homeland Security Chief of Staff Privacy Officer Executive Secretary International Affairs Counter Narcotics Small & Disadvantaged Business Note (1): Effective March 1 st, 2003

20. Independent Executive Agencies Established by Congress with separate status outside the executive branch Given a specific mandate and generally perform a service function, not a regulatory one. Some examples include: Social Security Administration, CIA, NASA, EPA.

21. Independent Regulatory Commissions IRCs exist to regulate a specific economic activity or interest such as the Federal Communications Commission (public air waves) or Federal Reserve Board (banking system, money supply) IRCs operate independently from Congress and the President Once appointed and seated, members cannot be removed without cause

22. Government Corporations SOCIALISM! Government owned businesses created by Congress May or may not be profitable, but serve a public need Ex: U.S. Postal Service, Amtrak, Tennessee Valley Authority, Corporation for Public Broadcasting

23. Who supervises the federal bureaucracy?

24. The President Supervises the Bureaucracy The President can: appoint & remove agency heads (senate has to approve) appoint & remove agency heads (senate has to approve) reorganize the bureaucracy reorganize the bureaucracy issue executive orders (force of law) issue executive orders (force of law) reduce an agency's budget (OMB- office of Management and Budget) reduce an agency's budget (OMB- office of Management and Budget)

25. Congress Oversees the Bureaucracy Congress can: create or abolish agencies & departments cut or reduce funding investigate agency activities hold committee hearings pass legislation that alters an agency's functions influence or even fail to confirm presidential appointments Former FEMA Chief Michael Brown testifies before House committee investigating Hurricane Katrina

26. Federal Courts Check the Bureaucracy Federal courts can: through judicial review rule on whether the bureaucracy has acted within the law and the U.S. Constitution provide due process for individuals affected by a bureaucratic action Supreme Court of the United States

27. The Bureaucracy of Pizza

28. Title: The Damages of the Bureaucracy Artist: unknown, La Presna, Panama Date: May, 2006 Source: http://www.politicalcartoons.comhttp://www.politicalcartoons.com

29.  The Federal Reserve Board- Modern day Hamilton Vision- closest thing to the first and second national bank!  Primary responsibility is to set monetary policy  Monetary policy includes setting bank interest rates, controlling inflation, regulating the money supply, adjusting bank reserve requirements  UMMMMM…..WHAT????  Here is how a bank works…bank works MO QUARTERS!!!

30.  The Federal Reserve Continued  Has great independence  Monetary Policy is usually removed from politics  Usually able to use its economic expertise to develop monetary policies without interference from political parties and interest groups…  So what do our elected representatives actually control….?  Fiscal Policy- refers to taxing and spending policies. Both the executive and legislative branches share responsibility for fiscal policies

31. Monetary PolicyFiscal Policy Interest Rates Me vs. POP POP Controlling Inflation and regulating the money supply (buying and selling treasury notes) What is a bond again? Who are we actually loaning money to? Bank Reserve requirement Why would the Fed do this? Taxes AND Spending What is the difference between monetary and fiscal policy? Who controls what and give me a specific example.

32. Theories  Monetarism- belief that inflation occurs when too much money is chasing too few goods  “Mr. Franzyshen, why can’t we just print more money to pay back our debt?”  (history)Bad Reactions- Governments tend to cut back on money supply when inflation hits  Gov should have a steady, predictable increase in the money supply at a rate equal to the growth in the economy  During Recession- cut interest rates

33. Theories  Keynesianism- belief that the gov must manage the economy by spending more money when in a recession and cutting spending when there is inflation  John Maynard Keynes- provided the economic argument for New Deal  Key is to create the right level of demand  When demand is too little, gov should pump more money into the economy  Gov should take out when economy recovers  National debt does not matter- ECONOMIC performance is everything!

34. Theories  Economic Planning- belief that government plans, such as wage and price controls or the direction of investment, can improve economy Price and Wage ControlSupply-Side John Kenneth Galbraith Big corporations can raise prices because the forces of competition are too weak to restrain them Labor unions can also force up wages During inflationary times, the gov should regulate prices and wages in larger industries Less Government interference Cut taxes Cut government spending More money in your pocket to invest and spend Less dependence on government programs

35. Who has the right approach? Should the government and independent agencies regulate the economy?

36. Eminent Domain!!  5 th Amendment  NO PERSON shall be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without JUST compensation

37. Understanding Bureaucracies  Bureaucracy and Democracy  Iron Triangles and Issue Networks  Iron Triangles: a mutually dependent relationship between bureaucratic agencies, interest groups, and congressional committees or subcommittees  Exist independently of each other  They are tough, but not impossible, to get rid of  Some argue they are being replaced by wider issue networks that focus on more than one policy.

38. Understanding Bureaucracies