Copyright © 2011 Pearson Education, Inc. Publishing as Longman
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
Bureaucracy
CHAPTER8
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
The Federal Bureaucracy
Trace the development of specific f...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
The Federal Bureaucracy
Trace the development of specific f...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
Development of the Federal
Bureaucracy
8.1
Back to Learning...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
• Article II
– Discusses the president and executive power,...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
The First Departments
• During the nation’s first century, ...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
The First Departments (cont’d)
• America began growing as t...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
The New Deal and its
Aftermath
• Franklin Roosevelt (1933–4...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
Growth in the Size of the Federal Bureaucracy
The Roosevelt...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
Departments and Independent
Agencies
• Departments
– Commer...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
Departments
• Department of Energy
– Response to the crisis...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
Political Appointees in the
Bureaucracy
• Cabinet meetings ...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
Independent Agencies, Independent
Regulatory Commissions, a...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
The Nature of Bureaucracy
• The negative image of the burea...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
The Advantages of Government
Bureaucracy
• Bureaucracies pr...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
The Advantages of Government
Bureaucracy (cont’d)
Problemat...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
The Problems of Government
Bureaucracy
• While the attempt ...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
Reform of the Bureaucracy
• Some critics argue that alterna...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
The Lobbying Pathway and
Policymaking
• Regulations
– The b...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
The Bureaucracy and Legislation
• Iron triangle, issue netw...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
The Bureaucracy and Information
• Opposition to the preside...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
8.4
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
Regulations
• Federal agencies may receive rule-making
auth...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
Quasi-Judicial Processes
• The bureaucracy affects policy i...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
Oversight and Accountability 8.4
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
Members of the president’s cabinet
heads get their jobs
A. ...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
Members of the president’s cabinet
heads get their jobs
A. ...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
The reform giving greater independence to
regional offices,...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
The reform giving greater independence to
regional offices,...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
The earliest presidential cabinets contained
which of the f...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
The earliest presidential cabinets contained
which of the f...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
The largest expansion of the federal
government occurred in...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
The largest expansion of the federal
government occurred in...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
What do you think?
Should nominees for Cabinet Secretaries
...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
What do you think?
When government corporations fail to
mak...
Copyright © 2011 Pearson Education, Inc. Publishing as Longman
Credits
250 U.S. Coast Guard photo by Petty Officer 3rd Cla...
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Chapter 8 - Bureaucracy

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  • Agency officials can shape public policy through their authority to create rules for administering programs and for enforcing laws enacted by Congress and the president. They are also the source of information and ideas for members of Congress who wish to propose new statutes about various policy issues The prevailing view of the role and scope of the federal government was limited to addressing those shortcomings under the Articles of Confederation: the regulation of interstate commerce and the collection of revenues, protection from foreign and domestic threats and a uniform court system to handle disputes.
  • Congress became increasingly assertive in using its constitutional authority to enact laws regulating interstate commerce to prevent business monopolies, control the exploitation of child labor, improve dangerous working conditions, and deal with other problems created by the new industrial economy. In the first decade of the twentieth century, Congress created the Department of Commerce and the Department of Labor to address these emerging issues.
  • The Great Depression, which began with the stock market crash of 1929, brought years of record-high unemployment and economic problems. Many Americans had come to expect federal action on important matters, eventually including such areas as education and criminal justice, which had traditionally been the exclusive preserve of state and local governments
  • After these crises had passed, why didn’t the government shrink back to its size in the early years of the twentieth century?
  • Department: Any of the 15 major government agencies responsible for specific policy areas whose heads are usually called secretaries and serve in the president’s cabinet. Independent agencies have narrow responsibilities for a specific policy issue, such as the environment. They are independent in the sense that they are not subunits of a larger department, but like departments, their leaders are appointed by and under the control of the president. Independent regulatory commissions are not under the control of the president or a department. They have a focused policy mission governing a specific issue area, but they are run by a body of officials drawn from both political parties and appointed in staggered terms over the course of more than one presidential administration. Government corporations have independent boards and are intended to run like private corporations. They handle a specific function, such as the postal system or the passenger railroad, which Congress believes would not be handled effectively by private businesses, either because of the huge scope of the operation or because of issues of profitability.
  • The President’s cabinet has grown to include 15 departments as well as the administrators of three agencies within the Executive Office of the President: the Office of Management and Budget (OMB), the Office of National Drug Control Policy, and the Office of the U.S. Trade Representative. The head of one independent agency, the EPA, also has cabinet rank. Cabinet members are expected to be loyal to the president to avoid any public indication that they question the president’s agenda or actions. After being appointed by the president, they must be confirmed by the U.S. Senate. These appointees work directly for the president and try to guide and push the bureaucracy to act in accordance with the president’s policy preferences. Unfortunately, secretaries and assistant secretaries who are appointed by the president do not necessarily possess expertise on the policy issues and laws administered by their departments. In the confirmation process, senators may expect that the secretaries and other appointed officials in specific departments possess relevant experience and expertise. Since the final decades of the twentieth century, presidents have also used their appointment power to demonstrate a commitment to diversity as a means of pleasing their constituencies and attracting more voters.
  • Direct services from a local firefighter or police officer put a human face on much-appreciated and immediate government services. But federal officials are often distant, faceless decision-makers whose contacts with citizens are based on slow and frequently disappointing correspondence in response to questions and requests. Because of their size and distance from many citizens, federal agencies may be especially susceptible to generating negative images. The government officials with whom we communicate may appear detached and unresponsive
  • Standardization. By having a centralized administration and a common set of rules, benefits and services can be provided in a standard fashion that avoids treating similarly situated citizens differently. Expertise and Competence. When people who work in an agency focus on specific areas of law and policy throughout their careers, they can develop expertise on those issues. This expertise will help them effectively carry out laws and policies and, moreover, permit them to advise Congress and the president on ways to improve law and policy. Presumably, their expertise will make them more competent than people who know little about the subject. Accountability. Congress can authorize a specific budget for particular programs and then monitor results for the targeted policy area. Coordination. Efforts of different agencies can be more effectively coordinated when each has clearly defined responsibilities and a hierarchical structure. Hierarchy enables the leaders in each agency to direct subordinates to work in cooperation with other agencies. Patronage System (Spoils System): A system that rewards the supporters of successful political candidates and parties with government jobs while firing supporters of the opposing party.
  • Patronage led to abrupt turnover in many government positions after elections in which a different political party gained power Unqualified people got government jobs despite lacking the knowledge and interest to carry out their tasks properly Government workers steered benefits and services to fellow partisans and sought to deprive their political opponents of government services. Civil Service System: A government employment system in which employees are hired on the basis of their qualifications and cannot be fired merely for belonging to the wrong political party; originated with the Pendleton Act in 1883 and expanded at other levels of government in the half-century that followed. Hatch Act (1939) a law that limits the participation of federal employees in political campaigns. They can vote and attend political rallies, but they cannot work on campaigns or endorse candidates. Although this law limits federal workers’ political participation, it is intended to prevent them from being pressured by elected officials to donate their money and time to political campaigns and spares them from the fear of losing promotions, raises, and other benefits for failing to support the party in power.
  • As organizations grow in size, decision-making layers increase between the employee whom the average citizen encounters and the upper-level managers with final authority. Higher-level decision makers may be far removed from the practical policy problems affecting citizens. Almost by nature, large organizations are resistant to change. People who have become accustomed to doing their jobs in a specific way may be reluctant to adopt new priorities and directives. Bureaucracies are not typically associated with innovation and bold ideas. They change slowly, and usually in incremental fashion. When agencies are large bureaucracies, it can be exceptionally difficult to organize, implement, and monitor programs effectively.
  • Decentralization: a reform in which the federal government could give greater independence to regional offices that would be more closely connected to local issues and client populations. Alternatively, states could be given greater authority to handle their own affairs. Privatization: The process of turning some responsibilities of government bureaucracy over to private organizations on the assumption that they can administer and deliver services more effectively and inexpensively. Senior Executive Service (SES), a program within the federal executive branch that enables senior administrators with outstanding leadership and management skills to be moved between jobs in different agencies in order to enhance the performance of the bureaucracy
  • The bureaucracy influences the formulation of public policy through the decisions and actions of and through the day-to-day implementation of laws and regulations by lower-level personnel. Full and proper implementation of many laws often rest in the hands of low-level officials making discretionary decisions.
  • Iron triangle, a concept describing the tight relationship and power over policy issues possessed by three entities sharing joint interests concerning specific policy goals: (1) interest groups concerned with a particular policy issue, (2) the key committee members in Congress and their staff with authority over that issue, and (3) the bureaucracy’s leaders and the experts on that particular issue within a given department or sub-agency. Issue Networks (Policy Communities): Interest groups, scholars, and other experts that communicate about, debate, and interact regarding issues of interest and thus influence public policy when the legislature acts on those issues. The “revolving door” of employees moving between federal government service and interest groups or lobbying firms raises concerns that an agency may be “captured” or controlled by officials who have long alliances with and commitments to specific interest groups.
  • Occasionally, long-time bureaucratic officials disagree with laws and policies, or interpretations of these sought by the president and presidential appointees. These officials may contact personnel associated with the official’s oversight committee, alerting sympathetic members of Congress to initiate investigations. Officials will also provide information to Congress for use in crafting and approving statutes. Whistleblowers provide this information both formally and informally. risking workplace retaliation in the form of dismissal, demotions, and other sanctions intended to punish them and to deter others from revealing politically damaging information.
  • FIGURE 8.3 The Cost of Medicare Drug Benefits In seeking to gain congressional approval for its Medicare prescription drug plan, the Bush administration reportedly pressured an expert in the bureaucracy to keep quiet about cost projections that it knew would make the plan unacceptable to many Republican members of Congress. The figures showing significantly higher expected costs were only revealed after the program had been enacted into law. —Does the president have too much influence over the bureaucracy?
  • Regulations: Legal rules created by government agencies based on authority delegated by the legislature. When Congress writes law, agencies are either created and empowered or enabled through specific language to create programs and promulgate rules and regulations to implement policies. Congress, in 1946, wrote the Administrative Procedures Act, which details the process by which agencies create rules. The rule-making process creates opportunities for influencing the results.
  • Secretary of the Treasury Timothy Geithner faced tough questioning from members of Congress when summoned to testify about the Obama administration’s programs for keeping banks from collapsing and reviving the national economy. —How does Congress influence the actions of federal agencies?
  • Department of State—responsible for diplomacy and foreign affairs Department of War—responsible for military matters and national defense Department of Justice—responsible for legal matters under federal law Department Treasury—responsible for tax revenues and government expenditures of the Treasury
  • Department of State—responsible for diplomacy and foreign affairs Department of War—responsible for military matters and national defense Department of Justice—responsible for legal matters under federal law Department Treasury—responsible for tax revenues and government expenditures of the Treasury
  • Chapter 8 - Bureaucracy

    1. 1. Copyright © 2011 Pearson Education, Inc. Publishing as Longman
    2. 2. Copyright © 2011 Pearson Education, Inc. Publishing as Longman Bureaucracy CHAPTER8
    3. 3. Copyright © 2011 Pearson Education, Inc. Publishing as Longman The Federal Bureaucracy Trace the development of specific federal departments and agencies. Departments and Independent Agencies Analyze the debate over whether the heads of federal agencies should be policy experts or loyal political appointees. The Nature of Bureaucracy Describe the image people have of the federal bureaucracy, and evaluate the bureaucracy’s advantages and disadvantages. The Lobbying Pathway and Policymaking Assess the mechanisms and processes that influence and oversee the federal bureaucracy. Key Objectives 8.1 12. 8.4 8.3 8.2 Click on buttons to go to the relevant slide.
    4. 4. Copyright © 2011 Pearson Education, Inc. Publishing as Longman The Federal Bureaucracy Trace the development of specific federal departments and agencies. 8.1 Back to Learning Objectives
    5. 5. Copyright © 2011 Pearson Education, Inc. Publishing as Longman Development of the Federal Bureaucracy 8.1 Back to Learning Objectives • Article I – Makes reference to congressional authority to “make all laws necessary and proper for carrying into Execution . . . all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof. • Thus the founding document explicitly acknowledged that government agencies, called “departments,” would be established to carry out laws and programs.
    6. 6. Copyright © 2011 Pearson Education, Inc. Publishing as Longman • Article II – Discusses the president and executive power, and the need to create governmental departments that will execute the laws under the president’s supervision and control – Specifically states that the president “may require the Opinion, in writing, of the principal Officer in each of the executive Departments, upon any subject relating to the Duties of their respective Offices” Development of the Federal Bureaucracy (cont’d) 8.1 Back to Learning Objectives
    7. 7. Copyright © 2011 Pearson Education, Inc. Publishing as Longman The First Departments • During the nation’s first century, the federal government was involved in only a limited range of policy areas. – Department of State—responsible for diplomacy and foreign affairs – Department of War—responsible for military matters and national defense – Department of Justice—responsible for legal matters under federal law – Department of the Treasury—responsible for tax revenues and government expenditures 8.1 Back to Learning Objectives
    8. 8. Copyright © 2011 Pearson Education, Inc. Publishing as Longman The First Departments (cont’d) • America began growing as the first wave of immigrants entered • The economy transitioned from primarily agricultural as industrialization caused cities to grow • Americans began leaving the farms and moving to the cities to find work – Departments of Labor and Commerce are created 8.1 Back to Learning Objectives
    9. 9. Copyright © 2011 Pearson Education, Inc. Publishing as Longman The New Deal and its Aftermath • Franklin Roosevelt (1933–45) – Contributed enormously to the growth in the federal bureaucracy – Created governmental programs in response to the Great Depression and World War II • Public Works Administration (1933) • Tennessee Valley Authority (1933) • Federal Housing Administration (1934) • Securities and Exchange Commission (1934) • Social Security Administration (1935) • National Labor Relations Board (1935) 8.1 Back to Learning Objectives
    10. 10. Copyright © 2011 Pearson Education, Inc. Publishing as Longman Growth in the Size of the Federal Bureaucracy The Roosevelt administration’s programs to address the Depression and World War II dramatically increased the size of the federal bureaucracy. 8.1 Back to Learning Objectives
    11. 11. Copyright © 2011 Pearson Education, Inc. Publishing as Longman Departments and Independent Agencies • Departments – Commerce – Treasury Analyze the debate over whether the heads of federal agencies should be policy experts or loyal political appointees. 8.2 • Independent agencies – Environmental Protection Agency – Food and Drug Agency • Independent regulatory commission – Securities and Exchange Commission – Federal Communications Commission • Government corporations – Federal Deposit Insurance Corporation – Pension Benefit Guarantee Corporation Back to Learning Objectives
    12. 12. Copyright © 2011 Pearson Education, Inc. Publishing as Longman Departments • Department of Energy – Response to the crisis of the 1970s • Department of Veterans Affairs – Made stand-alone because of the large numbers of veterans needing care • Department of Homeland Security – Created the TSA and consolidated several other independent agencies in response to 9/11 8.2 Back to Learning Objectives
    13. 13. Copyright © 2011 Pearson Education, Inc. Publishing as Longman Political Appointees in the Bureaucracy • Cabinet meetings inform the president on the activities of each department • Cabinet heads are appointed by the president and are expected to be loyal to the executive • Appointments are often made as a reward for loyalty to the party or the president • Appointments are also used as a means to diversify staff 8.2 Back to Learning Objectives
    14. 14. Copyright © 2011 Pearson Education, Inc. Publishing as Longman Independent Agencies, Independent Regulatory Commissions, and Government Corporations • Often serve staggered terms so that no new president can replace the entire commission or board upon taking office – Federal Reserve Board • Sometimes, appointees must contain a mix of Republicans and Democrats – Federal Communications Agency, Federal Trade Commission • Some independent agencies are government corporations with their own boards of directors – Smithsonian, Peace Corps or NASA 8.2 Back to Learning Objectives
    15. 15. Copyright © 2011 Pearson Education, Inc. Publishing as Longman The Nature of Bureaucracy • The negative image of the bureaucracy may be enhanced by Americans’ expectations that the government ought to operate for the benefit of the people • Public frustration can be compounded by the fact that many government employees enjoy job protections that make them very difficult to fire • Image is directly related to function Describe the image people have of the federal bureaucracy, and evaluate the bureaucracy’s advantages and disadvantages. 8.3 Back to Learning Objectives
    16. 16. Copyright © 2011 Pearson Education, Inc. Publishing as Longman The Advantages of Government Bureaucracy • Bureaucracies provide a number of advantages for implementing laws and public policies – Standardization – Expertise and competence – Accountability – Coordination • Merit–based hiring, as opposed to patronage allows for professionalization 8.3 Back to Learning Objectives
    17. 17. Copyright © 2011 Pearson Education, Inc. Publishing as Longman The Advantages of Government Bureaucracy (cont’d) Problematic for a number of reasons – High turnover – Lack of competence and professionalism – Inequitable distribution of service with rampant corruption • Pendleton Act (1883) • Hatch Act (1939) 8.3 Back to Learning Objectives
    18. 18. Copyright © 2011 Pearson Education, Inc. Publishing as Longman The Problems of Government Bureaucracy • While the attempt to professionalize the bureaucracy has produced improvements, there are still problems – Proximity of decision-makers to delivery of service – Resistance to change and innovation – Difficulties in implementing and monitoring programs 8.3 Back to Learning Objectives
    19. 19. Copyright © 2011 Pearson Education, Inc. Publishing as Longman Reform of the Bureaucracy • Some critics argue that alternative approaches to implementation could reduce the problems of government bureaucracy – Decentralization • Risk of inconsistent implementation – Privatization • Controversial as cost-savings are often not seen and service delivery is inconsistent • Inability to hold private companies accountable – Creation of the SES 8.3 Back to Learning Objectives
    20. 20. Copyright © 2011 Pearson Education, Inc. Publishing as Longman The Lobbying Pathway and Policymaking • Regulations – The bureaucracy will promulgate rules and regulations to implement policy • Oversight – The bureaucracy works with the legislature on implementation • Quasi-judicial role – The bureaucracy has an ‘administrative hearing” process Assess the mechanisms and processes that influence and oversee the federal bureaucracy 8.4 Back to Learning Objectives
    21. 21. Copyright © 2011 Pearson Education, Inc. Publishing as Longman The Bureaucracy and Legislation • Iron triangle, issue networks or policy communities • The “revolving door” 8.4 Back to Learning Objectives
    22. 22. Copyright © 2011 Pearson Education, Inc. Publishing as Longman The Bureaucracy and Information • Opposition to the president’s agenda • Testimony or reports to oversight committees • Whistleblowers 8.4 Back to Learning Objectives
    23. 23. Copyright © 2011 Pearson Education, Inc. Publishing as Longman 8.4
    24. 24. Copyright © 2011 Pearson Education, Inc. Publishing as Longman Regulations • Federal agencies may receive rule-making authority within the law. • General statutory language can become the basis for the bureaucracy’s development of its own precise rules • Statutes written by Congress also specify the procedures that agencies must use in developing regulations and provides another pathway for participation 8.4 Back to Learning Objectives
    25. 25. Copyright © 2011 Pearson Education, Inc. Publishing as Longman Quasi-Judicial Processes • The bureaucracy affects policy in some agencies through hearings that look similar to the duties of courts in examining evidence and issuing decisions • These administrative hearings are presided over by administrative law judges. 8.4 Back to Learning Objectives
    26. 26. Copyright © 2011 Pearson Education, Inc. Publishing as Longman Oversight and Accountability 8.4
    27. 27. Copyright © 2011 Pearson Education, Inc. Publishing as Longman Members of the president’s cabinet heads get their jobs A. like federal judicial appointments, they are nominated and confirmed by the Senate, for a lifetime appointment. B. like ambassadors, they are nominated and confirmed by the Senate, serving at the leisure of the president. C. because they are experts in their fields and are hired through the civil service. D. after serving in the bureaucracy for many years and working their way up. Back to Learning Objectives
    28. 28. Copyright © 2011 Pearson Education, Inc. Publishing as Longman Members of the president’s cabinet heads get their jobs A. like federal judicial appointments, they are nominated and confirmed by the Senate, for a lifetime appointment. B. like ambassadors, they are nominated and confirmed by the Senate, serving at the leisure of the president. C. because they are experts in their fields and are hired through the civil service. D. after serving in the bureaucracy for many years and working their way up. Back to Learning Objectives
    29. 29. Copyright © 2011 Pearson Education, Inc. Publishing as Longman The reform giving greater independence to regional offices, allowing a closer connection to local issues and client populations is A. decentralization. B. privatization. C. discretion. D. deregulation. Back to Learning Objectives
    30. 30. Copyright © 2011 Pearson Education, Inc. Publishing as Longman The reform giving greater independence to regional offices, allowing a closer connection to local issues and client populations is A. decentralization. B. privatization. C. discretion. D. deregulation. Back to Learning Objectives
    31. 31. Copyright © 2011 Pearson Education, Inc. Publishing as Longman The earliest presidential cabinets contained which of the following? A. Department of Public Works B. Department of Interior C. Department of Commerce D. Department of Treasury Back to Learning Objectives
    32. 32. Copyright © 2011 Pearson Education, Inc. Publishing as Longman The earliest presidential cabinets contained which of the following? A. Department of Public Works B. Department of Interior C. Department of Commerce D. Department of Treasury Back to Learning Objectives
    33. 33. Copyright © 2011 Pearson Education, Inc. Publishing as Longman The largest expansion of the federal government occurred in what period? A. Immediately following the Civil War as a part of Reconstruction B. The early 1900s, as the economic and social structure of the country was changing C. As a part of the Great Society, with the creation of programs to counter poverty D. After 9/11, in response to terrorism and external threats Back to Learning Objectives
    34. 34. Copyright © 2011 Pearson Education, Inc. Publishing as Longman The largest expansion of the federal government occurred in what period? A. Immediately following the Civil War as a part of Reconstruction B. The early 1900s, as the economic and social structure of the country was changing C. As a part of the Great Society, with the creation of programs to counter poverty D. After 9/11, in response to terrorism and external threats Back to Learning Objectives
    35. 35. Copyright © 2011 Pearson Education, Inc. Publishing as Longman What do you think? Should nominees for Cabinet Secretaries be experts in their respective fields? YES. Americans have come to expect professionalism in the implementation of policies and as the head of an agency, a secretary should have more than a passing understanding of what that agency does. NO. Heads of departments need not have expertise because they do not directly deliver services and rely upon the professional staff of their respective organizations to be the experts. Back to Learning Objectives
    36. 36. Copyright © 2011 Pearson Education, Inc. Publishing as Longman What do you think? When government corporations fail to make a profit, should Congress ‘shut them down? YES. Just like a failed business, government corporations which fail to earn a profit should be closed; otherwise, tax dollars are wasted. NO. Government corporations are providing a service that the private sector would not because there isn’t enough profit margin to warrant it or ensure against monopolies. Back to Learning Objectives
    37. 37. Copyright © 2011 Pearson Education, Inc. Publishing as Longman Credits 250 U.S. Coast Guard photo by Petty Officer 3rd Class Ann Marie Gorden; 252 TongRo/Beateworks/Corbis; 255 Bettmann/ Corbis; 256 Cecil Stoughton/Bettmann/Corbis; 257 AP Images/Jakub Moser; 263 Carol T. Powers/Bloomberg/Getty Images; 264 Mario Tama/Getty Images; 268 Michael Fein/Bloomberg/Getty Images; 271 Luke Frazza/AFP/Getty Images; 275 Joshua Roberts/Bloomberg/Getty Images; 277, top to bottom: Kevin Lamargue/Reuters/Landov; Susan Gaaghil/Reuters/Landov; AP Images/Gerard Herbert; Patrick Baz/ AFP/Getty Images Back to Learning Objectives

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