Ginsberg Chapter 11

Ginsberg Chapter 11 - Ginsberg Chapter 11 The Federal Bureaucracy Executive Agencies Government Corporations-not high enough to be in the Cabinet

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Ginsberg Chapter 11 The Federal Bureaucracy Executive Agencies & Government Corporations- not high enough to be in the Cabinet, but important nonetheless OPM NASA CIA Social Security Peace Corps These parts of the governments began as semi-independent businesses, but have ended up under the control of the President U.S. Postal Service-1970 set up as semi-independent Tennessee Valley Authority-provides energy The idea was that these corporations be set up as businesses to save money, by allowing them to cover their own expenses. In some cases it has worked, but not in others. Regulatory Commissions- These are part of the government, and nominally under Presidential control, but they operate very independently. The reason is that they govern parts of the economy judged too critical to be messed with by a succession of Presidents or uninformed Congressmen. Federal Trade Commission-unfair business practices, DO NOT CALL, consumer protection Federal Communications Commission- Radios, television, and cell phones Securities and Exchange Commission-Enron Federal Reserve Board (Alan Greenspan—now Ben Bernanke) determines interest rates for the whole country. o Central Bank: An institution that controls how much money is flowing through the country. It does this by giving loans to other banks, and controlling the interest rates charged to the other banks o If Central Bank interest rates go down , other banks decrease rates to their borrowers, then Interest rates on individual savings accounts go down, and People save less and spend more, which stimulates the economy o If Central Bank interest rates go up , other banks increase rates to their borrowers, then Interest rates on individual savings go up, and People save more and spend less, which slows down the economy o Inflation : Why not just keep interest rates low?? Cheap credit can set up a situation where you have lots of $ floating around, and not enough goods for people to buy. Too much demand, not enough supply=People want higher wages so they can get what they need=causes a wage/price spiral http://www.federalreserve.gov/ Undue Influence of the Regulatory Commissions : This independence also means that there is no effective control mechanism. These guys have a lot of power. They are appointed by the President, with Senatorial consent, and serve staggered terms, usually of six years, to insure
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This note was uploaded on 03/16/2011 for the course PLSC 2003 taught by Professor Diallo during the Spring '08 term at Arkansas.

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Ginsberg Chapter 11 - Ginsberg Chapter 11 The Federal Bureaucracy Executive Agencies Government Corporations-not high enough to be in the Cabinet

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