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Public Corporations as New Arm of Government Congress, the Wallace Nomination, and the R.F.C.Public corporations, owned in whole or in part by the Government of the United States, have increased rapidly in size and number during recent years. They now number more than 100 and have total assets in excess of $30 billion. Taken together, they have been characterized as “a fourth arm of the federal government.” In successive emergencies—World War I, the depression, World War II—the government corporation has been found an elastic and efficient instrument for the conduct of business and other activities outside the competence of the regular government departments. The existing corporations may shortly be subjected to new controls, and some of them may be terminated after the close of hostilities, but there is every reason to expect continued and enlarged use of the corporate device after the war in dealing with problems of reconstruction and natural resource development.
Along with the Vice President, the President's Cabinet members are his most important advisors. This picture shows President Reagan, Vice President Bush, and Cabinet members in the Oval Office. Even the experts can't agree on the total number of federal government agencies, commissions, and departments. Most estimates suggest there are probably more than 2,000 of these. They each have an area of specialization — some much broader than others — but their duties often overlap, making administration more difficult. To complicate things even more, many agencies have counterparts at the state and local level. Its size, complexity, and overlapping responsibilities leave the federal bureaucracy open to constant attempts to reorganize and streamline. Congress has the power to create, organize, and disband all federal agencies. Most of them are under the control of the President, although few of them actually have direct contact with the White House. So, the bureaucracy has two masters — Congress and the President. The bureaucracy generally falls into four broad types: Cabinet departments, government corporations, independent agencies, and regulatory commissions The Cabinet DepartmentsThe 15 Cabinet departments are each headed by a Secretary who sits on the President's Cabinet. The exception is the Justice Department, which is headed by the Attorney General, who is also a member of the President's Cabinet. The Secretaries are responsible for directing the department's policy and for overseeing its operation. Cabinet secretaries are usually torn between their responsibilities as presidential advisers and heads of their departments. As the first woman Cabinet member, Frances Perkins served for 12 years, helping draft legislation such as the Social Security Act and the first federal minimum wage laws. Each has a special area of policy, although their responsibilities are still very broad. The organization of each is quite complex, but they have some things in common. All Secretaries have a Deputy or Undersecretary, as well as a host of Assistant Secretaries, who all direct major programs within the department. Most departments are divided into bureaus, divisions, and sections. For example, the FBI lies within the domain of the Justice Department, and the Secret Service is currently within the Treasury Departmeny agency, but soon to be moved under the auspices of the Department of Homeland Security . Government CorporationsGovernment corporations do not belong to any department — they stand on their own. Probably the best-known government corporations are the United States Postal Service and Amtrak. They are different from other agencies in that they are businesses created by Congress, and they charge fees for their services. Like any other business, government corporations have private competition — such as Federal Express and United Parcel Service — and sometimes state competition — such as the New Jersey Transit Authority. At the time of its creation, NASA was assumed by many to be a defense-related agency. Today, it brings nations together in highly publicized efforts like the International Space Station shown here.
Independent AgenciesIndependent agencies closely resemble Cabinet departments, but they are smaller and less complex. Generally, they have narrower areas of responsibility than do Cabinet departments. Most of these agencies are not free from presidential control and are independent only in the sense that they are not part of a department. Congress creates them as separate agencies for many reasons, practical as well as symbolic. For example, when the National Aeronautics and Space Administration (NASA) was established, many members of Congress assumed that it would be a part of the Department of Defense. However, it is an independent agency because the space program has many other purposes than the defense of the nation. The ATF (now the Bureau of Alcohol, Tobacco, Firearms, and Explosives) was transferred from the Department of the Treasury to the Department of Justice in 2006. Regulatory AgenciesThese agencies regulate important parts of the economy, making rules for large industries and businesses that affect the interests of the public. Because regulatory commissions are "watchdogs" that by their very nature need to operate independently, they are not part of a department, and the President does not directly control most of them. Each commission has from 5 to 11 members appointed by the President, but the President cannot remove them for the length of their terms in office. Examples of these commissions are the Securities and Exchange Commission, which regulates the stock market, brokers, and investment practices. Another well-known commission is the Federal Reserve Board that governs the nation's monetary policy. The Environmental Protection Agency serves as a guardian over the nation's environment, making and enforcing standards for the industrial and commercial sectors. With over 2,000 different agencies, the federal bureaucracy is almost certain to run into problems with organization, overlapping responsibilities, and efficiency. Almost every recent President has come into office determined to refashion and trim the bureaucracy. However, none has been able to make more than minor adjustments. Well-established agencies have lives of their own, and are difficult to change. Besides, the country has large, complex, needs requiring special attention. A large bureaucracy is a part of the government's attempt to meet those needs. NASA
Homepage Report broken link The Federal Deposit Insurance Corporation (FDIC) Report broken link U.S. Nuclear Regulatory Commission Report broken link The Securities and Exchange Commission Report broken link Federal Trade Commission Consumer Protection Report broken link DefenseLink — The U.S. Department of Defense Joint Chiefs of Staff Report broken link The United States Department of Justice Report broken link U.S. State Department Report broken link United States Treasury Department Report broken link If you like our content, please share it on social media!How are government corporations different from private corporations?Government corporations are similar to private corporations in that they have the same independence as private businesses since no agency is tasked with overseeing, directly managing, or supervising them. However, they differ from private businesses in that they are not privately owned but are owned by the government.
What are government corporations?As defined in this report, a government corporation is a government agency that is established by Congress to provide a market-oriented public service and to produce revenues that meet or approximate its expenditures. By this definition, currently there are 17 government corporations.
What is a government corporation and give an example?Organizations Designed for Government Involvement
The United States also has many examples. The United States Postal Service (USPS), Environmental Protection Agency (EPA), and Federal Deposit Insurance Corporation (FDIC), for instance, are all government corporations in one form or another.
Does the US government own any companies?The US government has several of these, including the passenger railroad company Amtrak, the United States Postal Service and federal mortgage corporations Fannie Mae and Freddie Mac.
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