The document discusses the role of bureaucracy in the U.S. government as established by the Constitution but not explicitly defined. It examines different views on whether the Framers intended for a bureaucracy and analyzes how the bureaucracy has evolved over time from the patronage system to a modern Weberian model. Theories on bureaucratic agencies are presented regarding their role in regulation and policymaking from public interest, public choice, and reputation perspectives.

1. The Bureaucracy
Chapter 12

2. The Constitution and Bureaucracy
 Bureaucracy
 An organization that is structured hierarchically to carry out
specific functions
 A common view
 The Framers did not intend and had no role for a bureaucracy
 The Framers didn’t say we need the CIA, FBI, IRS, or DARPA
 They were never intended at the time of the Constitution
 Is this correct?

3. The Constitution and Bureaucracy
 Informational Function of the Executive Dept.
 Article 2, Section 2: “[the President] may require the Opinion in
writing, of the principle Officer in each of the executive
Departments, upon any subject relating to the Duties of their
respective Offices”
 What we know
 Executive Departments are established
 Heads of Departments offer opinions to the president
 They have duties, but they’re not defined in the Constitution

4. The Constitution and Bureaucracy
 Appointment Power
 Article 2, Section 2: “…the Congress may vest the Appointment
of such inferior Officers, as they think proper, in the President
alone, in the Courts of Law, or in the Heads of Departments
 Does the lack of mentioning specific executive departments
mean that the Framers didn’t want (or think) any would be
necessary?

5. The Constitution and Bureaucracy
 Federalist #72 – “The administration of government, in its
largest sense, comprehends all the operations of the body
politic, whether legislative, executive, or judiciary; but in its
most usual and perhaps in its most precise signification, it is
limited to executive details, and falls peculiarly within the
province of the executive department”
 Aspects included
 Foreign negotiations
 Finance
 Application and disbursement of the public monies
 Operations of war

6. History of Bureaucratic Efficiency
 Patronage System (1829-1883)
 Members of winning parties typically would appoint their faithful
constituents to government offices as a reward for their support
(and monetary contributions)
 Andrew Jackson -- “To the victor go the spoils”
 Connected to political machines
 Strengthened parties
 Attracted more constituents
 Functioned as a tool of political control
 Still exists in some major cities

7. History of Bureaucratic Efficiency
 Civil Service Reform: The Pendleton Act (1883)
 An act that established the principle of employment on the basis of merit and
created the Civil Service Commission
 Competitive exams for federal positions
 No dues-paying
 No campaigning for federal office (Hatch Act of 1939)
 No firing simply for political reasons
 Civil Service Problem
 De-politicization = insulation
 Difficult to hire and fire
 Overall – can the federal bureaucracy be efficient without politics?

8. The Modern Bureaucracy
 Types of Agencies
 Administrative agency
 Federal, state, or local government unit established to perform a specific
function; typically used to enforce and administer specific laws
 Independent executive agencies
 Agency that is not part of the Cabinet but reports directly to the president
 CIA, NASA, EPA, SSA
 Independent regulatory agencies
 Agency outside the major executive departments; charged with making and
implanting rules and regulations
 FTC, Federal Reserve System, FCC

9. Bureaucracy as a Modern
Organization
 Weberian model – model of bureaucracy developed by the
German sociologist Max Weber, who viewed bureaucracies as
rational, hierarchical organizations in which decisions are based
on logical reasoning
 Fixed and official jurisdictions
 Clear distinction between superiors and subordinates
 Management based on written documents
 Management presupposes training (and/or education)
 Managing the office (department) is a full-time job
 Management by a set of rules
 Technical superiority leads to advancement of bureaucracy

10. Bureaucracy and Business
 Government Corporation
 Agency of government that administers a quasi-business enterprise
 Tennessee Valley Authority, U.S. Postal Service, FDIC
 Two approaches to governmental influence/interference with
business:
 Nationalization
 Takeover of a business by the national government
 Ex. FDIC buying out a defaulting bank; the “great auto crisis” of 2008-09
 Privatization
 Replacement of government services with services provided by private firms
 Ex. County prison systems; Blackwater security contracting in Iraq

11. Bureaucrats and Policy
 Dated theories of public administration hold that bureaucrats do
not make policy, only implement it
 Modern views hold that agencies play an important role in the
policy making process
 Congress makes a law and someone eventually has to turn it into
concrete action; it’s best to consult with the people/group who will be
carrying out the action
 The bureaucracy’s policymaking role can be depicted as:
 An Iron Triangle (dated)
 An Issue Network (modern)

12. Bureaucrats and Policy
 Iron Triangle (dated view)
 The three-way alliance among legislators, bureaucrats, and
interest groups to make or preserve policies that benefit their
respective interests
 Issue Network (modern view)
 A group of individuals or organizations that supports a particular
policy position on a given issue
 May consist of legislators, staff, interest group leaders, bureaucrats, the
media, scholars, and other experts

13. Theories on Bureaucratic Agencies
 Public Interest
 Regulation: Agencies neutrally follow the missions given to them
 Efficiencies: assumed to be efficient
 Pathologies: missions might be too broadly or narrowly drawn;
resources may be insufficient
 Public Choice
 Regulation: agencies are captured by the very firms they regulate
 Efficiencies: responsiveness to a coalition of interests outside the
agency
 Pathologies: special interest dominate; bureaucrats essentially
become another special interest

14. Theories on Bureaucratic Agencies
 Reputation
 Regulation: based solely on agencies’ reputation
 Military, FDA
 Efficiencies: incentives to avoid errors; responsiveness to
various constituencies
 Pathologies: high risk aversion; aversion to admission of
mistakes
 Administrative justice over public legal disputes

15. Theories on Bureaucratic Agencies
 Example: Why did “unprofessional” military officers dominate
Union Army leadership in the Civil War?
 Lincoln appointed “unprofessional” generals: Nathaniel Banks,
Benjamin Butler, John Fremont, and John A. Logan
 Military schools (think West Point) did not yet have reputation
for expertise and superior training
 This came around the time of the Spanish-American War
 Only in the 20th century do military academies gain superior
reputation within the military, society, and political institutions

16. Theories on Bureaucratic Agencies
 Example: Why did the FDA accelerate drug approval in the
latter part of the 20th century?
 1980-2004: the average drug approval time falls by 60% or better
 2.5 years to less than 1 year
 Public Choice theory: firms had been asking for acceleration all
along
 Reputation theory: political organization of patients upset over
long drug approval times and their ability to influence the media
forced the FDA to respond
 What’s the better choice?

17. Helping Out the Bureaucracy
 Whistleblower
 An individual who brings to public attention gross governmental
inefficiency or an illegal action
 Typically someone who works within the offending agency
 Civil Service reform in the 1970s and 198s encourages state and
federal employees to report employer wrongdoing
 Some statutes offer monetary rewards
 False Claims Act of 1986
 Problems
 Little evidence that whistleblowers actually receive protection
 Over 40% of whistleblowers report that they no longer work for the agency
they reported