Transcript Exec - Structure: PowerPoint notes

Executive Branch
Structure of the Executive Branch
as it
Supports the President
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
Executive Departments
Each of these is led by a “secretary” that will serve in the President’s Cabinet. Each one has a
“specialty” on which it is focused.
The Cabinet
 Made up of the heads of the Executive Departments
 Called “Secretaries” (usually)
 Provide advice and guidance
 Are experts in their fields
 The President does not know everything about everything –
surrounds self with people who do have expertise in a
particular area
 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.
Executive Agencies
Purpose
 Carry out the “daily
function” of the national
government
 Enact laws that have been
passed the legislative
process
 Do NOT have Cabinet
status
Examples
 EPA
 NASA
 FDA
 FCC
 Interstate Commerce
Commission
 Peace Corps
 Federal Corporations:
 FDIC, USPS, Amtrak
Helping Mr. President with the Economy
Fiscal Policy
 Using government
taxing and
spending to
influence the
economy
 Controlled through
government
budgeting
 Influences
consumer and
government
spending
Monetary Policy
 Using the money supply and interest
rates to influence the economy
 Controlled by the Federal Reserve (FED)
 Chair is appointed by the president
 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
 Influences consumer spending
Helping Mr. President with the Economy
 Both fiscal and monetary policy decisions are made to influence the
economy
 Fiscal:
 Government may raise or lower taxes
 Monetary
 FED may increase or decrease amount of money circulating
 FED may increase or decrease interest rates on loans
 Want to encourage economic GROWTH
 Demonstrated by:
 Increased consumer spending
 Increase in GDP
 Decrease in unemployment rate
What Happens If….
The Government
raises taxes?
The FED lowers
the interest rate?
What Happens
If….
The FED increases the
money supply?