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The Bureaucracy. 2/23/2012. Clearly Stated Learning Objectives. Upon completion of this course, students will be able to: identify and explain the role of formal (bureaucratic) institutions and their effect on policy.
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The Bureaucracy 2/23/2012
Clearly Stated Learning Objectives • Upon completion of this course, students will be able to: • identify and explain the role of formal (bureaucratic) institutions and their effect on policy. • students will have a better understanding of why our national government works and why the American system of government is unique.
Office Hours and Readings • Readings- Chapter 10 on the Bureaucracy • Office Hours • Today- Ragsdale Study Abroad Fair • Monday- 10-1
Why a Bureaucracy • The Tasks of Government • The Public Goods Problem • The Size of Government
Why a Bureaucracy: Human Resources • 2 million employees • 1.4 million active duty personnel • 24% of Total GDP
The Bureaucracy in the Constitution • No specific mention • Article II- implies a bureaucracy • The Founders didn’t expect a large role
The Pendleton Act and The Spoils System • “To the victor goes the spoils” • James Garfield (RIP) • The Pendleton Act (1883)
Responding to problems • Changes cause Bureaucratic Growth • Expansion • Economic Crises • New Social Problems • War and terrorism
Cabinet Positions • 15 Top Departments • Cabinet Heads are appointed by the president • Must be confirmed by the Senate
Independent/Executive Agencies • Report to the President • The result of overlapping jurisdictions • Promote Independence and openness
The Case of Social Security • Used to be part of Health and Human Services • “spun-off” in 1994 • Now it is independent
The Regulatory Commissions • Regulate some aspect of the Economy • Appointed By the President in over-lapping terms • Free of Presidential Control and partisan tides
The Case of the EPA • Not a regulatory Commission • Under control of the President • Why is this the case?
Government Corporations • Provide public goods • Run like a business to increase efficiency • Not designed to make a profit
The Case of the Post Office • Once a cabinet level position • Government Corporation status in 1971 • Monopoly on letters and mailboxes • Facing 8.5 Billion shortfall
Administering Policy • The oldest job of the government • Day-to-day functions
Providing Information • Collecting and disseminating data • Policy Expertise • Examples • http://www.eia.gov/
Delegated Legislative Authority • This is the power of the Bureaucracy to draft as well as execute, specific policies. • Why? • Effect
What is Regulation? • an imposition of restrictions on the activity of market participants. • “The Watchdog of Public safety, Is there any lower form of Life • Usually the action of a regulatory agency
Market Failure: Imperfect Information • Government acts to correct deficiencies in the marketplace • Imperfect Information • http://www.youtube.com/watch?v=oc1TBBp4dC8
Market Failure: Taking advantage of Workers • Why? • Examples • Child Labor • Unsafe work Conditions
Damage of Common Property • Exploiting shared resources • Tragedy of the commons • Government must intervene
Market Failure: Monopoly • What is it? • Horizontal • Vertical
Requiring Information • Reduce information costs • Placed on food, prescription drugs, tobacco
The Case of Prescription Drugs • Single largest factor in increasing health care costs • Direct-to-consumer marketing • Must say certain things • http://www.lunesta.com/about/see-our-tv-ad.html
Licensing and Ownership • Control who participates in the marketplace • Television- Radio • Poor Jesse- addicted to caffeine
Rule-Making and Adjudication • Very inexpensive to do • Money through fines • Federal Law Enforcement
Incentives and Sanctions Incentives Sanctions These Try to Discourage Behavior Fines and taxes Gas Guzzlers • These try to encourage behavior • Money, tax breaks • Electric Cars • Heavy Duty Vehicles
Problems with Regulation • Higher Prices • Foreign Competition
Deregulation • Reducing regulations on business • Attempts to lower costs to consumers and business • Can lead to re-regulation
Article III The supreme court
The Courts in the Constitution • Article III Section I • One supreme court • Ability to Create others • Tenure of office • Article III Section 3- treason
Article III Section 2 • ambassadors and other ministers, counsels, and admiralty • controversies between two or more states • between citizens vs foreign citizens or states.