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Chapter 11:

The Bureaucracy

“Useless Laws weaken the necessary laws.” -Baron De Montesquieu (Father of the ‘Three-Branch’ form of Government)

The Federal Bureaucracy is often referred to as the “Fourth” Branch!

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What is the Federal Bureaucracy?

Definition of BUREAUCRACY (Source: Merriam-Webster Online)

1 - body of nonelected government officials

b: an administrative policy-making group

2 - government characterized by specialization of functions, adherence to fixed

rules, and a hierarchy of authority

3 - a system of administration marked by officialism, red tape, and proliferation

(* The DMV is a state bureaucracy – but you get the idea.)

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1.Politician has an idea: “Let’s pass a law to make sure every American has some retirement money at the end of their working lives. We’ll call it ‘Social Security.’

2. After the President signs into law a Social

Security bill passed by both houses of Congress, a citizen later receives a Social Security check in the mail. But what bureaucratic layers lay between the bill’s signing into law and the check being received in the mail?

Is it really that EASY?

What Is the Federal Bureaucracy?

How is Bureaucracy Created?

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For Social Security (example): 1. Social Security Administration 2. Internal Revenue Service 3. Department of Justice (if any fraud or criminal activity) 4. Government Accountability Office (for auditing) 5. Treasury Department (tax receipts and processing of payments) Many, Many, Bureaucrats needed to facilitate Social Security. 1. Bureaucrats to assign SSN #s at birth. 2. Bureaucrats to negotiate leases of buildings for SSA workspace. 3. Bureaucrats trained to be Gov’t Contracting Officers who must be certified to

make purchases for government using the Federal Acquisition Regulation (FAR) and Agency specific Regulations.

4. Members of the FAR Council must draft acquisition rules. 5. Agency Attorneys to review leases of space for the Social Security Admin. 6. Inspector General auditors and attorneys are hired to investigate potential

fraud involving contracts and request for benefits.

What Is The Federal Bureaucracy? What Do Bureaucrats Do?

(Bureaucratic Layers)

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7. Funds must be spent to build or upkeep courthouses in case matters must be referred to the Dept of Justice.

8. Federal Judges and Attorneys must be hired to prosecute and hear cases. 9. All Bureaucrats must receive training in ethics and job specific duties. 10. All Bureaucrats must have supervisors to supervise, who are also trained

themselves in HR matters. 11. All HR folks must be trained themselves. 12. SSA has a website and databases. Contracts must be issued to create and

maintain. Contracting Officers are needed to do this (with Attorney review and Inspector General investigation and DOJ prosecution if fraud).

13. Contracts for paper needed for anything produced in writing. 14. Contracts for office supplies, cleaning crews, maintenance, construction,

utilities, cars, security badges, parking lot creation/renovation, parking passes, desks, pencils, copiers, fax machines, telephones, water/sewer, electricity, air conditioning, printers, bookshelves, training resources, folders for information on citizens seeking SS payments.

What Is The Federal Bureaucracy? What Do Bureaucrats Do?

(Bureaucratic Layers)

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15.Receptionists, customer service personnel, case managers, supervisors, attorneys, inspector general, Assistant Director, Director, all the way up to the Commissioner. 16. The list could go on forever….. All these people and more would became a “necessary” part of bureaucracy as soon as the Social Security Act of 1935 became law.

What you need to know…

- The Bureaucracy is made up of

civil servants and political appointees.

- Iron Triangles: Federal Employees, Congress, and Interest groups.

- Depending on the scope of law, Bureaucratic Layers can involve

procurement, providing services, research and development, and managing

and directing.

What Is The Federal Bureaucracy? What Do Bureaucrats Do?

(Bureaucratic Layers)

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Bureaucrats (the experts) create regulations to implement laws passed by Congress. Federal regulations affect every aspect of our everyday life; gas mileage of cars, materials used to build roads; price of gasoline; how much doctors can charge; who can get organ transplants; who can get student loans; Everything. (5:00-8:00)

Bureaucratic rule makers act as lawmakers and law enforcers when they make rules or draft regulations to implement laws.

Two ways Bureaucracy makes policy. 1. Administrative adjudication (settling disputes inside the agency) 2. Administrative discretion (st-3:50) Rule making: Problem - technical and vague. Proposed rule posted for 30 in the Federal Register - Notice and consent procedure.

Both lead to the making of standard operating procedures, and red tape.

What Is The Federal Bureaucracy What do Bureaucrats Do? (And)

Bureaucratic Expertise And Its Consequences

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How Rules Become Regulations

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“I believe there are more instances of the abridgment of the freedom of the people by gradual and silent encroachments of those in power than by violent and sudden usurpations.”

- James Madison 4th President & “father of the Constitution”

James Madison

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History of the American Bureaucracy

Beginning of Bureaucracy: collected taxes on imports and exports, and

delivered the mail. Small size reflected Americans’ deep suspicion of

government, especially unelected officials.

Civil War – Grew government (large army, occupation of one region by another)

Andrew Jackson – To the victor goes the spoils!

(1890-1920) The Progressive Era: Regulating Commerce and Individuals:

Government intervention creates bureaucracy.

T. Roosevelt: Expansion of the Interstate Commerce Commission

W. Wilson: 16th Amendment, WWI

Spoils v. Merit system?(Pendleton Act)

(1930s) The New Deal: Social Security Act and other parts of the New Deal

saw the unprecedented transfer of power to bureaucrats and the president!

(1960s) The Great Society: Much marked with failure. “Despite these

shortcomings, the expansion of the federal government during the New Deal

and Great Society has remained in place over the last generation.”

(Textbook p.334)

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The Structure of the Federal Government

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Over 1,150 agencies “The public’s desire for more government services is often

encouraged by elected officials, who create new government programs (and

expand existing ones) as a way of building support.” (Textbook p. 337)

28% of federal employees work for the Post Office. (5:21)

1) Departments (15) Homeland Security NJ salt shortage continues

Health and Human Services Child Lung Transplant(2:08) Secretary Sebelius(:51-3:22)

2) Independent Executive Agencies

IRS, NASA, EPA: (Narrow focus)

3) Independent Regulatory Commissions

FCC, SEC, Food & Drug Administration (8:40)

Seeking the Right to Try (passed in 5 states)

House: Obama's FDA causing drug shortages

4) Government Corporations - Amtrak (5:44)

(1 and 2 - President appoints heads.)

(3 - Board selected by President and confirmed by the Senate for fixed terms.)

The Modern Federal Bureaucracy

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“It is amazing that people who think we cannot afford to pay for doctors, hospitals, and medication somehow think that we can afford to pay for doctors, hospitals, medication and a government bureaucracy to administer it.”

- Thomas Sowell

American economist, social theorist, political philosopher, and author. IRS Seeks 9,000 New Employees as It

Prepares to Enforce Obamacare

Thomas Sowell:

Cost of Obamacare

Press release by Texas 8th District

Congressman Kevin Brady & U.S Senator

Sam Brownback.

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Some Benefits: (1) Career Ladder Positions (automatic promotions) (2) Student Loan Repayment (for some jobs) (3) Serve 10 yrs, remaining student loans forgiven (4) Can accrue 26 vacation days a yr (after 15 yrs) (5) Paid Federal Holidays (6) Telework (work from home for many jobs) (7) ‘Tenured’ after 3 years (difficult to get fired)(CBAs) (8) Some jobs you can work 4 ten hour days. (9) If a Veteran, get preferential treatment for job consideration

Where to Apply: https://www.usajobs.gov/ (Houston high Pay Locality: 28%)

But, there are limits on political activity: The Hatch Act and Federal Employees Political Activities Act

The Human Face of Bureaucracy Want to be a Federal Employee?

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According to the SSA website, there are over 62,000 SSA employees. SSA is headquartered in Maryland. 10 regional offices, 8 processing centers, approximately 1300 field offices.

“Social Security is currently the largest social welfare program in the United States, constituting 37% of government expenditure and 7% of GDP.”

- American Economic Review

Civil Service Regulations make it hard to fire federal employees Job Security? (2:28)

The question of “control” and “cost”? (4:23)

The Human Face of Bureaucracy

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Executive Control: Executive Orders, Appointments, Legislative Control: Senate confirms appointments; House controls funding,

Oversight hearings. (Police patrol oversight vs. fire alarm oversight) Judicial Control: Injunctions “The problem with eliminating

bureaucrats’ discretion is that it limits the positive influence

of their expertise.” (Textbook p. 343)

What do you think?

Controlling the Bureaucracy

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“The more corrupt the state, the more it legislates.”

Conclusion

- Tacitus Ancient Roman Senator

& Historian