Government Corporations

• Who owns AMTRAK and the Postal Service?• The Government. But why?– Public services• Mail (USPS)• Transportation (AMTRAK)• Mortgages/Loans (Fannie/Freddie)

– To give the government extra revenue– Many govt. corporations today operate in the red

Government Corporations

Other Agencies in the Exec. Branch

• Central Intelligence Agency (CIA)• NASA• National Science Foundation• Environmental Protection Agency (EPA)• Farm Credit Administration• Internal Revenue Service (IRS)• Federal Bureau of Investigation (FBI)

Regulatory Commissions

• These agencies are designed to make sure laws are being enforced and to protect the public– Federal Communications Commission (FCC)• Regulates TV, radio, telephone, internet

– Securities and Exchange Commission (SEC)• Regulates the stock market

– Food and Drug Administration (FDA)• Inspects food products/issues drug patents

The FCC monitors events like the Super Bowl

Why Regulation?• There’s a big debate between Democrats &

Republicans about the role of govt. regulation– Democrats = in-favor of regulation– Republicans= against regulation

• Regardless of political beliefs, some regulation is necessary

Bureaucracy• Refers to the complex structure of the

government (agencies, etc.)• Bureaucracy is basically network of

agencies that make up exec. branch• Word is sometimes used pejoratively• Red tape = used to describe the

inefficiency caused by a large bureaucracy– Days to get a single memo through entire

department– Department of Motor Vehicles

Pros/Cons of Bureaucracy

PROS CONS1.) Specialized 1.) Red tape2.) Treats everyone fairly 2.) can be 3.) Provides services slow/inefficient3.) Necessary to run 3.) Some critics our government argue bureaucracy is too large

Diagram of Homeland Security Dept.

How did you work for the Bureaucracy?

• Employment in bureaucracy was once based on the spoils system– Receiving jobs for being in a political party or

knowing somebody– This led to corruption and inefficiency

Civil Service System• Pendleton Act 1883 – – Created Civil Service Commission– You can only get a govt. job by passing a civil service

test– Therefore, jobs based on ABILITY AND EFFORT not

who you know