How do government corporations differ from other corporations in the United States

Report Outline
Public Corporations as New Arm of Government
Rise of the Government Corporation
Congressional Control of Federal Corporations
Special Focus

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.

Economic and political conditions throughout the world indicate that the expansion of governmental business activities in the United States is likely to increase still further. The body of experience which is already available demonstrates that business enterprises can be effectively carried on by the government only through agencies which possess a degree of autonomy and flexibility typical of successful types of private business organization. These essential characteristics are likely to be possessed by the government corporation to a greater degree than any other type of federal agency.

How do government corporations differ from other corporations in the United States

How do government corporations differ from other corporations in the United States

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 Departments

The 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.

How do government corporations differ from other corporations in the United States

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 Corporations

Government 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.

How do government corporations differ from other corporations in the United States

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.

How do government corporations differ from other corporations in the United States

Independent Agencies

Independent 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.

How do government corporations differ from other corporations in the United States

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 Agencies

These 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.

How do government corporations differ from other corporations in the United States

NASA Homepage
The National Aeronautics and Space Administration, according to its website, is an investment in America's future. Explore this incredible website, from its pages on space flight to women in NASA. Click on "other cool sites" for more neat stuff than you could visit in one day. Don't miss out on the Flash movie of NASA's vision or the webcasts, which can be viewed on Windows Media Player.

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The Federal Deposit Insurance Corporation (FDIC)
What happens if your bank goes bankrupt? You get your money back — if your bank is insured by the Federal Deposit Insurance Corporation. Since 1933, the FDIC has been keeping America's faith in its financial institutions alive. Take a look at the organization and browse its official website here.

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U.S. Nuclear Regulatory Commission
Homer Simpson makes the meltdown of a nuclear reactor in a power plant seem funny, but in reality it can cause worldwide devastation. The Nuclear Regulatory Commission is responsible for making sure that power plants are safe from the time they are built to the time that they are shut down. Take a look at what they do at their official website.

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The Securities and Exchange Commission
The stock market crash of 1929 crippled the U.S. economy and devastated the lives of millions of Americans. What did the government do to make sure that something like that never happens again? They founded the Securities and Exchange Commission, which oversees investment practices of American businesses. If you have an interest in the stock market, it's worth your time to wade through this official website.

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Federal Trade Commission
You've seen the board game Monopoly, but did you know that real monopolies are usually illegal? The Federal Trade Commission makes sure that companies follow the law, use fair business practices, and don't deceive the consumer. They also protect consumers by investigating complaints and educating us about what to look out for. The FTC's official website makes for an interesting read for anyone who might do business in the U.S.

Consumer Protection
Are you getting your money's worth? Check here before you make a purchase to find out how you could be hoodwinked if you aren't careful.

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DefenseLink — The U.S. Department of Defense
With the Army, Air Force, Marine Corps, and the Navy under its auspices, the Department of Defense is the part of the government assigned to maintaining national security. Its official website has pages on such threats to the U.S. as weapons of mass destruction and anthrax, as well as online memorials to fallen soldiers, Olympic coverage, and much more.

Joint Chiefs of Staff
The head honchos of each military branch make up the Joint Chiefs of Staff, who advise the President on military matters. Find out about the composition and philosophy of the organization here.

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The United States Department of Justice
Attorney General Janet Reno and her office are responsible for finding and prosecuting federal criminals. The official Department of Justice website is full of interesting information, including the FBI's most wanted list and pages on hot topics from school violence to the death penalty.

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U.S. State Department
Even though only 1% of the national budget goes to international affairs, the State Department does some of the most publicized government-related work in the country. The same agency that represents the U.S. in the United Nations is responsible for negotiating trade agreements and also issuing passports and visas. Take a look at some of the State Department's recent projects at their official website.

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United States Treasury Department
Show me the money! The U.S. Treasury Department monitors the government's bank accounts, prints money, and investigates tax evasion, among many other duties. Find out the answers to all your questions about one of the oldest offices in the U.S. government at their official website.

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How do government corporations differ from other corporations in the United States
How do government corporations differ from other corporations in the United States

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.