The heart and soul of government is the bureaucracy.
The politicians want to coordinate governmental effort in order to accomplish public purposes and solve collective action problems.
There is a pressing need or crisis that can lead to the creation of a bureaucracy.
The Department of Homeland Security is a good example.
The most dramatic reform of the federal bureaucracy since the establishment of the Department of Defense in 1947 occurred in 2003 when 22 federal agencies were combined in the DHS.
Both Republicans and Democrats realized that the public was going to demand an ongoing response to the terrorist threat after 9/11.
The creation of a homeland security Czar proved inadequate.
Whatever the motivation for creating a new bureaucracy, it is shaped by politicians who represent a variety of perspectives and must hammer out an agreement about the size, scope, and authority of the new entity.
Congress createscratic institutions to achieve policy goals.
They are created in a historical context.
By implementing the laws and policies passed by elected officials, bureaucrats can be seen as agents of Congress and the presidency.
In a principal-agent relationship, the bureaucracy is delegated authority and has a certain amount of wiggle room for independent action.
Despite the efforts of elected officials to check departments and agencies, bureaucrats have their own goals and thus exercise their own influence on policy.
Although controlling the growth of bureaucracy has been a concern in American politics, most Americans benefit from government programs and are reluctant to cut back on specific programs.
It gave an opportunity for policy change unrelated to national security.
The Bush administration included coastal environmental enforcement by the U.S. in the purview of the DHS.
In this case, relaxing the enforcement of environmental regulations, the Coast Guard was aware that they would be disadvantaged in the battle for resources within the department.
Some functions of the Treasury Coast Guard remain elsewhere.
Information provided by the CIA, the FBI, the Defense Intelligence Agency, and other agencies are analyzed.
Bureaucracies are born through a political process.
Their features are designed by politicians who understand that the institutional powers with which they grant a bureaucracy have consequences for the kinds of decisions subsequently made.
Bureaucracies are used for both public and private purposes.
Bureaucrats bring private preferences to the table as they engage in various administrative processes, just as the rationality principle suggests.
The hopes and ambitions they bring to this setting interact with the institutional features of their bureaucracy to produce policies, outcomes, and decisions.
The policy principle tells us that these will reflect both the private interests of bureaucrats and the institutional ways in which they conduct their business.
We first describe bureaucracy as a social and political phenomenon in our focus on the federal bureaucracy.
We look at American bureaucracy in action by examining the government's major administrative agencies, their role in the governmental process, and their political behavior.
The political process touches nearly every aspect of daily life.
Bureaucracies are characterized by routine because they ensure that services are delivered regularly.
Students think that bureaucracy is mechanical.
That is a mistake.
Bureaucracy is more than just collecting garbage or mailing Social Security checks.
It is a reflection of political deals done by elected politicians, turf wars among government agents and private-sector suppliers and contractors, policy-delivery successes and failures in the eyes of the public, and reactions to these by the same officials who cut the deals in the first place.
Politics and administration are intertwined.
The public sentiment that emerged after September 11 revealed this underlying appreciation, as the peopledelegate to them vast power to make sure a particular job is done, leaving the rest of us freer to pursue our private ends.
The public supported giving the federal government responsibility for airport security even though this meant expanding the federal bureaucracy to make the security screeners federal workers.
A fearful public believed that a public bureaucracy would provide more effective protection than the private companies that had handled airport security in the past.
One of the standard questions posed in election years by the American National Election Studies can shed light on public attitudes toward government bureaucracy.
Although framing it in terms of waste may affect responses, the question allows respondents to register a blunt evaluation of bureaucratic performance.
Figure 8.1 shows the results from the past several decades.
There was a significant downward tick in 2002.
After the terrorist attacks, the public is even more cynical about bureaucratic performance.
The FEMA's poor response to the Hurricane Katrina crisis in 2005, domestic terrorist incidents later in the decade that seem to have evaded early detection, and yearly deficit spending contributed to further.
Maintaining order in a large society is impossible without a large governmental apparatus, staffed by professionals with expertise in public administration, despite their tendency to criticize bureaucracy.
The division of labor is the core of bureaucracy.
Experts perform complex tasks.
If each job is specialized to gain an efficien offices, tasks, rules, and principles of organization cies, then each worker must depend on other workers' output, and that requires that large institutions use careful allocation of jobs and resources.
The work of archical, often pyramidal, is coordinated by the bureaucracy.
Workers are at the center of the organization.
The supervision of work involves fewer workers per supervisor at the next level of the organization.
A few high-level executives engage in "management" of the organization, meaning the organization and reorganization of all tasks and functions, plus the allocation of supplies and the distribution of the organization's output to the market.
By dividing up tasks, matching tasks to a labor force that develops specialized skills, and giving the incentive structure and oversight arrangements to get large numbers of people to operate in a coordinated fashion, bureaucracy can accomplish tasks and missions in a way that would otherwise be unimaginable.
The provision of an array of "government goods" as broad as the defense of people, property, and national borders or as narrow as a subsidy to a wheat farmer requires organization, routines, standards, and ultimately the authority for someone to cut a check and put it in the mail.
These tasks are done by bureaucracies.
The rationality principle at work is that a bureaucracy reflects instrumental thinking about how to accomplish particular undertakings.
Bureaucracy insulates programs from opposing political forces.
In the legislature, the world of interest groups, and public opinion, a bureaucracy establishes a coalition of supporters, some of whom will fight to keep it in place.
To reverse a policy once it is in place, opponents must clear many hurdles, while proponents only have a few veto points.
Opponents tend to give up and concentrate on protecting what they care about the most.
Politicians like this fact of life.
At the time programs are enacted and a bureaucracy is created, both opponents and proponents of a particular set of governmental activities wage the fiercest battles.
These policies and the organizations that implement them assume a status of relative permanence; future developments are shaped by these initial conditions.
This raises an interesting dilemma, which will be developed in the next section.
Centralized agents are servants of politicians in the White House and Capitol Hill.
Servants have discretion and masters have limited ability to control them, but the bureaucracy's relative permanence is a form of insulation.
It can be difficult for elected officials to steer bureaucracy in a different direction.
Only those with intense concern for the jurisdiction of a bureaucracy are likely to persist in efforts to guide it.
Legislators with an interest in that bureaucracy's mission are most affected by bureaucratic agents.
Those in opposition move their attention to other areas.
In terms of how bureaucracy makes government possible, efficiency and credibility both play a role.
The creation of a bureau is a way to deliver government goods efficiently, and it is a device by which to tie one's hands and give a credible commitment to the long-term existence of a policy.
We have to look more closely at what papers are being shuffled and why.
Laws are being implemented.
Implementing the organization's to translate laws into objectives as laid down by its board of directors or by action is what it's called.
In a principal-agent relationship, the principal uses incentives and other control mechanisms to ensure the agent's compliance.
Legislative principals can be argued to establish bureaucratic agents in departments, bureaus, agencies, institutes, and commission of the federal government to implement the policies promulgated by Congress and the president.
Rules are being made and enforced.
Implementation is fairly straightforward when Congress makes the law clear to bureaucrats.
Bureaucrats translate the law into routines for their employees.
The agent of multiple principals is in a bind.
She has to chart a delicate course and try not to offend any of the bosses.
This requires another job for the bureaucrats.
Interpretation is the implementation of what the bureaucrats see as the intentions of their superiors.
When bureaucrats have to interpret a law before implementing it, they are engaging in lawmaking.
Rule making is similar to legislation in that it is often called quasi-legislation.
There are indications of what a policy will mean.
Policies that govern the use of national forests are charged with being made by the Forest Service administrative process.
This goal has been sought by environmentalists.
Under George W. Bush, the Forest Service allowed states to build new roads in the national forests.
The timber industry opposed the Clinton rule banning road building, but environmentalists challenged the Bush administration rulings and sued the Forest Service in federal court.
Both courts and the Obama administration were in agreement with the Clinton rules.
Rules and bureaucratic rules are in constant change because of litigation and reviews of the policy.
The bosses in Congress and the agents in the bureaucracy don't always share the same objectives.
Bureaucrats may drift from their principals.
Political science literature focuses on the relationship between Congress and the bureaucracy.
After a period of public comment, new rules take effect.
An agency may modify the rules if people or businesses react negatively to them.
Public participation includes giving testimony in public forums.
The agency has time to revise its draft after a draft rule or regulation is announced.
The rule-making process is politicized.
In administrative adjudication, the agency charges the person or busi if they are suspected of violating the law.
Administrative adjudication is used by many regulatory agencies to settle disputes with regulated decisions about specific products or practices.
Administrative adjudication is used to decide union certification.
Groups of workers want the right to vote on forming a union or the right to affiliate with an existing union as their bargaining agent and are opposed by their employers, who argue that relevant provisions of labor law do not apply.
The National Labor Relations Board takes testimony case by case and makes determinations for one side or the other.
In the same way that bureaucrats in large private organizations do, bureaucrats in government do the same things.
More constraints are imposed on public bureaucrats than on private bureaucrats because of the coercive nature of government.
Public bureaucrats are required to maintain a more thorough paper trail and are subject to more access by the public.
The Freedom of Information Act was adopted in 1966 and gives ordinary citizens the right of access to agency files and data so they can learn what the agency is doing.
Legislators find it valuable to delegate.
The legislature could make all bureaucratic decisions on their own.
The House Ways and Means Committee, the Senate Finance Committee, and the Joint Committee on Taxation have tax policy.
Every day it is published by the Government Printing Office.
The exception is it.
Statutory authority is usually delegated to the bureaucracy in vague terms, with the bureaucracy expected to fill in the gaps.
This isn't a blank check for unconstrained discretion.
The legislature's oversight of bureaucratic performance will hold the bureaucracy to account.
The staffs of relevant legislative committees monitor the latter and serve as a repository for complaints from affected parties.
The operating parts of the bureaucratic whole are the cabinet departments, agencies, and bureaus.
There are four general types: cabinet departments, independent agencies, government corporations, and independent regulatory commissions.
The Department of Agricul ture is an organizational chart, but any other department could serve as an illustration.
The secretary of the department is at the top.
The general counsel and the chief economist are two of the top administrators who are below him and his deputy.
The undersecretaries and assistant secretaries are in charge of a group of operating agencies, which are arranged vertically below the undersecretaries.
The bureau level is the highest level for specialized programs.
The Forest Service and the Food Safety and Inspection Service are examples of bureau-level agencies that the public knows about.
The FBI is a bureau in the Department of Justice.
The bureaus have divisions, offices, services, and units.
Even though the president appoints and directs these agencies' heads, the independent agency is established by Con gress outside the departmental structure.
Independent agencies can provide public services that are too expensive or important to be left to private initiatives.
Government corporations are similar to private businesses that perform and charge for a market service, such as transporting railroad passengers.
The independent regulatory commission has broad discretion to make rules.
Congress recognized that regulatory agencies are mini-legislature, whose rules and rulings are the same as legislation and legislative interpretation but require the kind of expertise and full-time staff.
The Federal Communications Commission was an independent regulatory commission until the 1960s.
In the late 1960s and early 1970s, all new regulatory programs with a few exceptions were placed within existing departments and made directly responsible to the president.
Until the financial crisis of 2008, no new major regulatory programs had been established.
The Federal Reserve System, the Federal Deposit Insurance Corporation, the Treasury, and related agencies were formed by Congress and the president.
Major changes to the regulation of banks and other financial institutions were brought about by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The Financial Stability Oversight Council is one of the new regulatory bodies created by the act.
A simple classification will help identify the agencies in the executive branch.
The classification that follows organizes each agency by its mission, as defined by its jurisdiction: clientele agencies, agencies for maintenance of the Union, regulatory agencies, and redistributive agencies.
The departments of Interior, Labor, and Commerce are also included.
The interests of their clientele are promoted by a department or bureau.
The Commerce and Labor department was founded in 1903 as a single department to promote and develop the foreign and domestic commerce.
Many of the personnel in field offices deal with their clients.
The Extension Service of the Department of Agriculture has local "extension agents" who consult with farmers on farm productivity.
Agencies that provide functional representation learn what their clients' interests and needs are and then operate almost as a lobby in Washington on their behalf.
The police are one of the vital functions of public order that the Constitution gives to state and local governments.
Some agencies vital to maintaining national bonds exist in the national government, and they can be grouped into three categories: (1) agencies for managing the sources of government revenue, (2) agencies for controlling conduct defined as a threat to internal national security, and (3) agencies for defending American security from external threats.
Treasury, Justice, Defense, State, and Homeland Security are the most powerful departments.
The IRS is the most important revenue agency in the federal government.
Over 100,000 employees work in district, service center, and hundreds of local offices.
More than 150 million individual tax returns and 2.5 million corporate returns were filed last year.
The IRS collected over $2 trillion in taxes from individuals and corporations.
Civil law allows the United States to enjoy national unity.
The Department of Justice is responsible for maintaining the Union if the country is not in a state of insurrection.
The Department of Education and the Department of Health and Human Services were joined in a single department in 1979.
All federal criminal laws are enforced by the Criminal Division.
The U.S. attorneys conduct criminal litigation.
A presidentially appointed U.S. attorney supervises the work of assistant U.S. attorneys in each federal judicial district.
The Antitrust and Civil Rights Divisions are described by their official names.
The FBI is the information-gathering agency for the Justice Department's other divisions.
Congress created the Department of Homeland Security in 2002 to coordinate the nation's defense against terrorism.
The department protects commercial airlines from would-be hijackers.
The employees of the Transportation Security Administration are the most visible.
The largest unit of the DHS is the TSA, which has 47,000 security officers and employees protecting airports and rail and bus depots.
The State and Defense are in charge of national security.
Key agencies outside of State and Defense have national security functions.
The State Department's primary task is diplomacy, but that is only one of its organizational dimensions.
The State Department's geographical, or regional, bureaus are concerned with all problems within that region of the world, as well as "functional" bureaus, which handle such things as economic and business affairs, intelligence, and research, and relationships with international organizations and bureaus of internal affairs.
Less than 20% of U.S. government employees working abroad are directly under the authority of the State Department.
The Defense Department has authority over the largest number of career government professionals working abroad.
The creation of the Department of Defense between 1947 and 1949 was an effort to unify the two historic military departments, the War Department and the Navy Department, and integrate them with a new department, the Air Force Department.
Real unification did not happen.
pluralism was added to national security by the Defense Department.
The United States' primary political problem with its military has been mundane compared to other countries that have struggled to keep their militaries out of politics.
The American military problem involves pork-barrel politics, because defense contracts are often lucrative for local districts, so military spending becomes a matter of narrow interests.
Proposed military base closings, always a major part of budget cutting, inevitably cause a lot of opposition from affected members in both parties and even from some members of Congress who favor cutting the Pentagon budget.
It shows the tendency of the bureaucracy to distribute things to the states and districts that elected the legislators.
Federal involvement in the regulation of economic and social affairs began in the late 19th century.
They are considered an administrative phenomenon with its A department, bureau and attendant politics.
The Food and Drug Administration is one of the departments whose primary mission is to make rules.
The Federal Trade Commission is an independent regulatory commission.
If Congress delegates to it broad powers over a sector of the economy or a type of commercial activity and authorizes it to make rules governing the conduct of people and businesses within that jurisdiction, an agency or commission is regulatory.
Congress was hesitant to turn the agencies over to law because they had the rules as a form of legislation.
Most of the important regulatory programs were delegated to independent commissions with direct responsibility to Congress.
They were referred to as the "headless fourth branch" in the 1930s.
With the rise of presidential government, most recent presidents have supported more regulatory programs, but have opposed the expansion of regulatory independence."
In the 1960s and 1970s, there was an unprecedented number of new regulatory programs, but only a few new independent commissions.
Welfare, fiscal, and monetary agencies transfer hundreds of billions of dollars annually between the public and private spheres, and through such transfers these agencies influence how people and corporations spend and invest trillions of dollars annually.
Agencies of redistribution influence the amount of money in the economy, who has it, who has credit, and whether people will invest or save their money rather than spend it.
Fiscal and monetary policy are related to money.
The administration of fiscal policy is done by the Treasury Department.
There is no contradiction to include the Treasury in the regulation of the economy.
The enormous federal debt is managed by the Treasury.
Currency printing by the Treasury is only a small part of the money manipulation of the economy.
Most of the trillions of dollars exchanged in the nation's private and supply of money are done electronically.
The credit rates and lending activities of the nation's most important banks are under the authority of the Fed.
The system of 12 Federal extends themselves by adopting overly permissive lending policies.
Reserve banks are responsible for this because of the fear of a sudden economic scare that makes dubious facilitates exchanges loans uncollectible and thus endangers the health of the banking system.
The Great Depression was caused by shocks to the economy such as cash, checks, and worst shocks.
The Federal Reserve Board sits at banks, and uses monetary the top of a pyramid of 12 district Federal Reserve banks, which are "bankers' policy to fight inflation and deflation in the banks," serving hundreds of member banks in the national bank system.
In the midst of the recession, the Fed played a major role by keeping interest rates low and helping struggling banks.
In the decade after the crisis, the Fed slowly and modestly raised interest rates to keep inflation in check.
Information about and coordination of the nation's finances are provided by the Office of Management and Budget in the White House and the Congressional Budget Office.
OMB is in charge of the president's budget and plays a role in clearing spending and regulatory decisions.
The attempts by the Trump administration and Republican Congress to come up with a new healthcare policy was helped by it.
The CBO's "scoring" of various legislative and administration proposals on the number of people who would lose insurance coverage if that proposal were enacted affected the views of key legislators.
The social insurance aspects of Social Security and Supplemental Security Income are managed by the Social Security Administration.
Massive expenditures that finance monthly Social Security checks for retirees as well as payments to the disabled, the unemployed, and some other categories of individuals are included.
Employees and employers pay taxes to fund these programs.
A growing group of voters worry that the present population will exhaust the Social Security Trust Fund in 40 years if no changes are made to benefit schedules, taxes, or retirement age.
The Temporary Assistance to Needy Families and Medicaid are administered by the Department of Health and Human Services.
The public-assistance programs have an administrative burden.
In 1996, Congress abolished almost all national means-tested public-assistance programs as federal programs, giving power over them to the state governments.
James Madison said, "You must first enable the government to control the governed, and in the next place oblige it to control itself."
The form has changed, but the problem is the same.
Keeping the government accountable to elected political authorities is a problem today.
Niskanen argued that the behavior of a bureau chief or department head is similar to that of a manager in a private firm.
The private-sector counterpart is a maximizer of his division's profits, just as the bureaucrat is a rational maximizer of her budget.
Motivational bases on which bureaucratic budget maximiz ing might be justified.
A cynical explanation is that the bureaucrat's compensation is tied to the size of her budget.
Bureaus with large budgets may have higher-salaried executives with more elaborate fringe benefits, as well as enhanced opportunities for career advancement, travel, and even a chauffeured limousine.
Nonmaterial personal gratifica tion is related to large budgets.
A person likes the prestige that comes from running a large enterprise.
Her stature and self-esteem are boosted by the fact that her division has a large budget.
A large bureau budget makes it possible to see a large number of subordinates.
Personal salary, on-the-job consumption, and power tripping are some of the factors that motivate a bureaucrat to get as large a budget as possible.
The mission orientation still drives them as they rise through the ranks.
As chief of detectives in a big-city police department, as head of procurement in the air force, or as supervisor of the social work division in a county welfare department, individuals try to secure as large a budget as possible to succeed.
Whether for self-serving motives or for noble public purposes, it is plausible that individual bureaucrats seek to persuade others to provide them with as many resources as possible.
It is difficult to distinguish the saint from the sinner because they both argue that they need more to do.
The case of Henry Paulson, a Wall Street financier who became George W. Bush's secretary of the treasury, is an example of why government service combines personal and patriotic motives.
Congress can evaluate a bureau's performance in making budget allocations.
Legislative committees hold hearings, request documentation, assign investigatory staff to research tasks, and query bureau personnel on the veracity of their data and their use of the lowest-cost technologies.
The committees make sure that what the legislature was told at the time when authorization and appropriations were voted actually holds up.
The budget-maximization objective of the bureaus is to be associated with interest groups and legislative committees and subcommittees that count those groups as major supporters.
Lobbying legislators to advocate for large bureau budgets, providing authority and appropriations for bureaus, and implementing favorable policies for interest groups are some of the things that interest groups do.
The interest groups appreciate starting the cycle all over again.
Weak incentives to oppose the system of policy making are needed to sustain it.
Legislators appalled by this arrangement in one policy area are often embedded in a similar arrangement in other areas.
The president may try to trim its more outrageous manifestations, but he is not always willing to go to the mat to eliminate the practice completely.
Budget maximizing is not the only objective that bureaucrats pursue.
They spend their professional lives pursuing political goals, bargaining, forming alliances and coalitions, solving cooperation and collective action problems, making policy decisions, operating within and interacting with political institutions.
Although they don't have elections to win, their conditions of employment are affected by the composition of the legislature and the ideological complexion of the chief executive.
Bureaucrats are politicians who are beholden to other politicians.