How it all comes together! Government at work

Government structure We all know that the government is large, complex organization that extends far beyond the three branches. Cabinets, committees, advisors, and millions of employees assist in the daily operations of government on both a national and state level. It’s the interplay between all these people that keeps our country moving!

Cabinets In countries with a presidential system, such as the United States, the Cabinet does not function as a collective legislative influence; rather, their primary role is as an official advisory council to the head of government. In this way, the president gets opinions and advice on upcoming decisions. No one is an expert in everything! Presidents rely on these advisors to report on activities in their specialized areas in order to make informed decisions.

Who are they? They are appointed by and serve at the pleasure of the head of government and are therefore strongly subordinate to the president as they can be replaced at any time. Normally, since they are appointed by the president, they are members of the same political party, but the executive is free to select anyone, including opposition party members, subject to congressional confirmation. They serve to keep the president informed.

Major cabinets in the United States Department of State (foreign affairs) Department of the Treasury (economics) Department of Defense (military) Department of Justice (federal court system led by the U.S. Attorney General) Department of the Interior (land/ resource management) Department of Education (education!) Department of Homeland Security (newest cabinet) There are MORE!

How all this works! The cabinet leaders advise the president on specific areas pertinent to his agenda. For example, right now tensions are rising with Iran. The Department of Defense is no doubt working overtime to provide as much information to the president as possible. Once the president creates his agenda, he then attempts to get Congress to pass laws to support that agenda. Sometimes they do and sometimes, they do not.

The economy One of the most contentious issues in politics is economic policy. Governments must spend money, but there are major differences in how that money should be spent. There are a variety of different economic approaches presidents have used to improve or maintain the economic structure. Let’s look at a few…

Trickle-Down Economics "Trickle-down economics" and "the trickle-down theory" are terms used in United States politics to refer to the idea that tax breaks or other economic benefits provided by government to businesses and the wealthy will benefit poorer members of society by improving the economy as a whole. Also known as supply-side economics, Ronald Reagan used this method during his terms. During Ronald Reagan's presidency, the marginal tax rate on the highest-income tax bracket dropped from 70% to 28%.

Keynesian economics Keynesians generally argue for broad fiscal policies that are direct across the entire economy, not toward one specific group. They want tax cuts largely for the middle and working classes in order to increase spending among large portions of the public. They argue that the private sector, driven by profit margins, does not conduct itself for the good of the public, but instead for the good of investors. It’s the government’s responsibility to protect public interest through taxes, strict regulations, and economic policy. President Roosevelt was a proponent of this economic theory.

Where does it all go? Government spending is far more complicated than most people think! It covers everything from the military to Social Security to schools! Taxes are the primary way a government raises money. In theory, individuals and corporations pay a percentage on their earnings in order to maintain government programs. When a country spends more than it earns, a deficit results. There are varying theories on deficit spending!

The controversy! The mainstream economics position is that deficit spending is desirable and necessary as part of countercyclical fiscal policy, but that there should not be a structural deficit: in an economic slump, government should run deficits, to compensate for the shortfall in aggregate demand, but should run corresponding surpluses in boom times so that there is no net deficit over an economic cycle – a cyclical deficit only.

How does this happen? 1) When a government begins handing out too many tax breaks, federal income drops. 2) When a government launches something extremely expensive and long-term. (wars are the most costly.) 3) When a government creates too many social programs that they cannot fund (MediCare is the crisis here). 4) Unexpected economic crises and corporations demand immediate government assistance. reasons-why-deficits-keep-growing

So what’s the problem? Just fix it! Easier said than done! Let’s go back to those two economic theories. The Trickle-Down Theory provides the top wage earners and corporations with tax breaks. The Keynesians argue for cuts for middle America. These two theories are polar opposites! Each side truly believes it is the answer to our economic crisis! There’s no compromise!

The argument! A small portion… One-third of the total dollar benefits of renewing the Bush Republican tax breaks would go to the top one percent of taxpayers. One fifth goes to the top three-tenths of one percent of taxpayers who earn $1 million per year or more. Supply-siders argue this will stimulate the economy by increasing investment in business. Keynesians argued that one- third of the Bush/ Republican tax breaks that go to the top one percent of households (with incomes of over $300,000 per year) would not serve as effective economic stimulus, but would only increase government borrowing.