The Federal Bureaucracy: The organization and tasks of the Executive Branch

1. The Federal Bureaucracy: The organization and tasks of the Executive Branch Chapter 15

2. The Constitution and the Bureaucracy ( Executive Branch Departments / Agencies) • The Executive branch is tasked with carrying out the laws created by Congress • to do so the executive branch has grown to include 15 cabinet departments, independent agencies, and the Office of the President • They are organized in a bureaucratic fashion( hence the name) • No employees are elected, some are appointed, most are hired • 2,000 appointments / 2.7 million employees

3. The Bureaucracy Constitution Where does the Bureaucracy come from? Congress creates departments / agencies The President nominates heads and other high officials The Senate confirms these officials • “The President has the power to appoint, with the advise and consent of the Senate ambassadors, judges, and all other officers…which shall be provided by the law”

4. What is a bureaucracy? • a way of organizing a large group of people to make sure that goals are met efficiently and effectively • NHV school district Each person has a specific job with specific duties There is a chain of command that is followed • Board & Superintendent • Principals • Vice Principals • Department Supervisors • Teachers

5. Federal Bureaucracy What they do: • the various agencies/ departments of the federal government that do the day-to-day work of carrying out the laws created by Congress • we have organized them in a bureaucratic manner (that is why we call them the bureaucracy) • The FDA inspector that ensures the safety and cleanliness of a meat-packing plant • The IRS agent that audits someone suspected of tax evasion • The CIA agent analyzing intelligence on a suspected terrorist plot against a US embassy

6. Federal bureaucracy • How the bureaucracy is arranged • Various units in each agency / department are arranged in a hierarchy (clear lines of authority) http://www.state.gov/r/pa/ei/rls/dos/99494.htm • employees are recruited and promoted based on relevant expertise in field • Only a handful of those who work in the executive branch are appointed, most are hired as career bureaucrats • Job specialization • Operations are guided by rules and procedures that are clearly defined • The goal of each agency/ department is to achieve goals efficiently and effectively

7. History of the Bureaucracy • 1789-1816: handful of federal employees • 1816-1861: grows 8 fold, 86% of the growth was due to growth of demand for postal service • 1861-1901: grow substantially: labor , agriculture, commerce • Mostly service • Research, pass out benefits, dispense federal lands… • 1887: ICC (Interstate Commerce Commission) created, regulation of the economy begins!!!!

8. History of the Bureaucracy • 1901-1933: Progressive Era and WWI cause growth in executive branch • PE: new agencies created to enforce laws • FDA, NLRB, IRS , Federal Reserve • WWI: wars always create growth • 1933-today: New Deal and WWII • Two most impactful events in growth of exec branch • People now expect the gov to take an active role in economic and social problems • About 2 million work in the executive branch!

9. History of the Bureaucracy • 1933-today: Congress has conceded discretionary authority (power to choose how policies are carried out) to executive branch agencies/ departments • FDA: decide what drugs can come to the market • FCC: decide who can own TV stations • FBI: what dissident groups should be investigated • EPA: what fumes can be emitted by a factory smokestack

10. History of the Bureaucracy…who works in the Executive Branch • 1789 to 1883: Presidents were able to replace nearly all executive branch officials with new appointees • Cleveland replaced 40,000 Republican postal employees with Democrats • “to the victor belong the spoils,” Andrew Jackson- awarded federal posts to party loyalists • Upper-class, white males

11. 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 Personnel Management (OPM) • Administers civil service laws and regulations • Is in charge of hiring for most fed agencies • Basically the human resources office for the gov

12. Organization of the Bureaucracy

13. White House Office • Made up mainly of advisors to the President and support staff • 454 staffers http://www.whitehouse.gov/21stcenturygov/tools/salaries • http://www.whitehouse.gov/administration/eop • Close proximity to the President = power • White House Chief of Staff (Denis McDonough) oversees all of the White House Staff and the Executive Office of the President • Many go on to other important political positions • Jack Lew: Chief of Staff / Sec of Treasury • Rahm Emmanuelle / Mayor of Chicago

14. Key members of White House Staff • Chief of Staff – gatekeeper who controls access to the President, manage the entire White House and determines what information flows to the President • Deputy Chief (s) of Staff, Senior Advisors, speechwriters • Press Secretary – presidential daily briefing, public relations, manage image of the president • First Lady • National Security Advisor (key member of the National Security Council)

15. Executive Office of the president • http://www.whitehouse.gov/administration/eop The following entities exist within the Executive Office of the President: Council of Economic Advisers Council on Environmental Quality Executive Residence National Security Council Office of Administration Office of Management and Budget Office of National Drug Control Policy Office of Science and Technology Policy Office of the United States Trade Representative Office of the Vice President White House Office

16. Executive Office of the President • Executive Office of the President • Report directly to the president • Not located in the White House • Appointments must be confirmed by the SENATE • Overseen by the Chief of Staff (White House Office) • 1,500-2,000 staffers work for the EOP • Only a handful appointed Important agencies include…. • The Office of Management and Budget • Examine the operations of the Executive Branch to evaluate efficiency and suggest plans for improvement • Review spending proposals from each cabinet department • Prepare the federal budget • The National Security Council • Advise the President on national security/ foreign policy matter • **Coordinate policies among various security-related government agencies • Members include secretary of state, national security advisor, secretary of defense, vice president, director of national intelligence, and others • Council of Economic Advisors • 3 prominent economists who advise the President on economic policy • Office of the Vice President

17. Cabinet Departments

18. Cabinet Departments

19. Cabinet Departments • Cabinet Departments • Appointments must be approved by the SENATE • Very visible / political job • Short term job (1 or 2 terms) • Divided loyalties? Some suggest that cabinet secretaries are more concerned with expanding their budgets and promoting the departmental goals rather than an undying loyalty to the President and his objectives • Broad mission: i.e. homeland security • Original intentions – key close advisors to the President • Washington administration – rather than work together as intimate advisors – Jefferson and Hamilton feuded • 15 departments exist today – generally don’t act as close advisors, that role is taken by the EOP • More concerned with overseeing their massive departments

20. Cabinet departments: Homeland Security: Organization

21. Independent Agencies • Examples: NASA, CIA, Federal Reserve (more on this later) • Smaller / more focused mission than cabinet departments • Leadership is appointed by Pres / approved by Senate • Can’t be removed by President, can be impeached • Intentionally removed from cabinet as to avoid political entanglements • Heads tend to keep position much longer than cabinet heads • Some have terms, some serve until they seek to retire…

22. Regulatory commissions • Why is the gov allowed to regulate business? • Munn v. Illinois: SCOTUS ruled that the businesses that engage in interstate commerce can have rules and regulations imposed on them by Fed gov • Examples: • FCC (Federal Communications Commission) http://www.fcc.gov/what-we-do • FERC (Federal Energy regulation commission) https://www.ferc.gov/about/ferc-does.asp EPA (Environmental Protection Agency) • Oversees and enforces regulations • Has the power to punish… (think of the FCC and fines they can impose for indecency on network TV) • Leadership not political in nature • Appointed by Pres / approved by Senate • Generally serve long terms • President can’t remove them from office, can be impeached

23. Government Corporations • government agency that is established by Congress to provide a market-oriented public service and to produce revenues that meet or approximate its expenditures • Examples: USPS, TVA, FDIC • Leadership not political in nature • Appointed by Pres/ approved by Senate • Generally serve long terms • Can’t be removed by the President, can be impeached

24. Review of Bureaucracy

25. Problems with bureaucracy • Red tape • Lots of rules and regulations must be followed = lots of paperwork • Everyone is treated the same, no special cases • Duplication = waste and inefficiency • Several different agencies administer similar programs • http://money.cnn.com/2011/03/01/news/economy/gao_report_government_duplication/index.htm • Costly • http://s3.amazonaws.com/atrfiles/files/files/092512pr-costhiringfedworker3.pdf • Too much power?!? • Make decisions about how laws should be enforced, can impose punishments, can develop new rules and regulations that businesses, states, and individuals have to follow • Why are they allowed to have so much power?

26. Where does the power of the bureaucracy come from? • They are essential: the laws of Congress need to be carried out • Need air traffic controllers… • Expertise: employees in agencies have technical knowledge and skills • Congress relies on this to carry out their laws • Discretion: because of the expertise of agency employees, they are given broad leeway in deciding how to carry out legislation • Why? • Too time consuming for Congress to create legislation and decide all of the specifics related to carrying it out • Congress can’t be blamed if the policy doesn’t work out • Easier for an agency to come to an agreement than for congress to do so • Clientele groups: the people who benefit from an agency can help get that agency more $ • If the people who benefit from an agency are politically powerful their budget is less likely to be cut • Boeing wants to increase their contracts with the DOD, they spend $ lobbying Congress to provide the DOD with more funding to acquire a new fleet of aircraft

27. How does Congress check the power of the bureaucracy? • Congress-members often become familiar with problems in the bureaucracy through their casework • Constituents contacting members for help with an issue • Power of the purse / budgetary limits can be placed on agencies • “sunset laws” • Create an end date for specific types of regulation • Congress can dissolve an agency or create new agencies that take power away from existing agencies • Congress has the power of oversight • Hearings / investigation

28. Who has the power in our gov’t? Iron triangles • Executive agencies, interest, groups , and Congressional subcommittees work closely on creating policy • Working together, these three groups set many government policies • Laws Congress creates • How those laws are carried out by agency • Because congressional committees are controlled by the majority party, political party association is important in this dynamic… Example: AARP (American Association of Retired Persons) the House subcommittee on aging, and the Social Security administration all working together to create legislation that would increase the rate of inflation on SS benefits Sometimes called “sub-governments”

29. Who has the power in our gov’t? Issue Networks • On the rise over the past 20 years… • alliance of various interest groups and individuals who unite to promote a single issue in gov’t policy • Wide range of people who push for a specific policy, generally due to passion about the issue (political party not as important) • Not as formal as an iron triangle • push for a change in policy within the government bureaucracy • Example: network of environmental groups, members of the media, professors, and politicians who push for new EPA regulations

30. Differences between iron triangles and issue networks Iron triangle Issue network Outsiders (those not in I.G. , agency, congress) can become involved in influencing policy Example: Newtown parents and gun legislation Passionate about an issue • connection between 3 distinct groups • Seek to benefit narrow interests

31. Gov control vs. Privatization • Public v. Private “In a free society the state does not administer the affairs of men. It administers justice among men who conduct their own affairs.”- Walter Lippmann • Should we leave things like the delivery of mail, space exploration, disaster clean-up, and the creation of more sources of clean energy to the government or to private industry? • What are the pros / cons of privatizing each area?

32. How many regulations?!? Stossel video: how many regulations ?!? “It will be of little avail to the people that the laws are made by men of their own choice, if the laws be so voluminous that they cannot be read, or so incoherent that they cannot be understood; if they be repealed or revised before they are promulgated, or undergo such incessant changes that no man who knows what the law is today can guess what it will be tomorrow.” --- James Madison Should regulation of what types of food products can/can’t be consumed concern of fed/state govs? Pros / cons?!?

33. The Bureaucracy of pizza Delivery • 1. Cardboard box • 2.Tomato sauce • 3. Crust • 4. Cheese • 5. Mushrooms • 6. Anchovies • 7. Pepperoni • 8. Onions • 9. Delivery vehicle • 10. Diet Soda

34. The Bureaucracy of pizza • 1. Cardboard box: EPA regulates the manufacture of pulp and paper • 2.Tomato sauce: USDA (united states dept. of agriculture) recommends that tomato sauce manufacturers add bottled lemon juice to sauce to ensure a safe acidity level • 3. Crust: The FDA (food and drug admin) regulates that foods containing wheat must be labeled as an allergen • 4. Cheese: The FDA regulates moisture content, fat content, and the type of milk used in cheese • 5. Mushrooms : The FDA requires that mushrooms picked from the wild must be individually examined by a mushroom identification expert to ensure they are safe to eat • 6. Anchovies: The USDA recommends that anchovies not be shipped in glass containers • 7. Pepperoni: The USDA tightly controls the sale of beef and pork products • 8. Onions: The USDA regulates the size and maturity of onions transported across state lines and imported internationally • 9. Delivery vehicle: The EPA regulates emissions and fuel efficiency • 10. Diet Soda: The FDA regulates the ingredients in carbonated beverages. The artificial sweeteners used in diet soda must be approved by the FDA.

35. Economic policy and the Bureaucracy : The Advisors • CEA (Council of Economic Advisors) • Housed in the EOP • Responsible for providing the President with information on economic trends, analyzing economic issues • President picks members with like economic ideology • Reagan = supply side • Obama = Keynesians • OMB (Office of management and budget) • Housed in EOP • Prepare budget estimates for the Executive branch • Help the president formulate budget he presents to Congress

36. Economic policy and the Bureaucracy : Regulators (round up…) • The Fed (Federal Reserve Board) • The purpose of the Fed • To encourage economic stability though monetary policy • Controlling the amount of money in circulation and the amount of credit available • Goals of the Fed: maximum employment & keep prices stable (control inflation) • Who’s in charge ? • Board of Governors : 7 appointed officials, serve 14 year terms • Staggered terms, every two years one of the seats is up for re-appointment • 1 chairman: Ben Bernanke(4 year terms)

37. How it is organized • 12 districts overseen by the board • 1. Operate Reserve banks: bankers’ banks • Provide loans to banks (this sets our loan rates/ known as discount rate – directly relates to consumer interest rate) • distribute paper and coin currency to banks • Clearinghouse for all electronic transfers • Debit card • Transfer funds from one account to another bank • Electronically pay bills • 2. Oversee banks in their district • Create and enforce regulations

38. How does the Fed use Monetary policy to achieve its goals? • Goals: maximum employment / keep prices stable • How do they try to achieve these goals? • Set reserve requirements: amount of money a bank must have in its vaults • Unemployment is up and economic growth is slowing down, what should the fed do with the reserve requirement? Why? • Set the discount rate: interest rate reserve banks charge commercial banks to borrow money, directly relates to the interest rate lending institutions charge consumers • Inflation is occurring and the fed wants to slow it down, what would they do to the discount rate? Why?

39. Oversight of banks

40. Checks placed on the Fed • The Board of Governors is nominated by the president of the United States and must be confirmed by the Senate.• The Chairman of the Board of Governors must give regular reports to Congress.• The minutes of meetings are released to the public after a short time lag • Why do you think this is the case?

41. Fiscal v. Monetary policy Fiscal policy Monetary policy Employed by the Federal Reserve (our central bank) Sets rules and regulations for banks to follow Manages all electronic transfers of money Controls the amount of $ in circulation Interest rates Reserve requirements Sale of bonds • Employed by Congress and the President • Taxing and spending plans designed to influence the economy • Can you think of any examples?

42. Monetary and fiscal policy How can monetary and fiscal policy be used to address the following economic problems? • The unemployment rate is 10%, stocks are dropping in value, and the housing and automobile sectors are hurting terribly. Monetary / fiscal • Inflation is increasing rapidly and personal and business debt is extremely high due to lax lending policies over the past decade. The government is worried that is there is a recession individuals and businesses will not have any savings to fall back on. Monetary / fiscal