The Second Bank of the United States
Economic Issue: Forming the Second Bank- The second Bank of the United States was formed for many reasons.
FDIC, which stands for Federal Deposit Insurance Corporation, was formed in 1933 after the bank failures during the 20’s. The FDIC provides insurance for deposits at banks. The FDIC can provide up to $250,000 in insurance for deposits per bank. SSA, Social Security Administration, was created in 1935 and provides social security benefits like retirement and disability benefits. TVA, Tennessee Valley Authority, was created to provide electricity, flood control, and economic development to the region known as the Tennessee Valley.
Each branch carries out their role in order to insure that tyranny
On the onset, it might appear as though the federal bureaucracy and Congress are two completely separate entities, with no relation to each other. However, upon a further look into the situation, it is obvious that the two work closely together, Congress makes and passes the laws, and the federal bureaucracy institutes and enforces those laws into action. Even though these two separate entities have their own specific functions, Congress is truly in control over the federal bureaucracy. Among the several different methods of control Congress employees, there are two specific measures Congress takes that standout among the rest. The measure of control is Congress institutes is Congressional investigations.
It performs five general functions to promote the effective operation of the U.S. economy and, more generally, the public interest.” (Board.) The five functions are “conducting the nation’s monetary policy,” “helping maintain the stability of the financial system,” “supervising and regulating financial institutions,” “fostering payment and settlement system safety and efficiency,” and “promoting consumer protection and community development.” (Board). The Federal Reserve conducts the nation’s monetary policy (Board).
Congress created the Federal Reserve System, which is the central bank, on December 23rd, 1913. Dual mandate, which is the Fed’s main goals, focuses on maintaining low inflation and having a low rate of unemployment; allowing the Fed to have a clear objective in what they are trying to accomplish. The main roles of the Fed in the U.S. economy are open market operations, open market purchases, open market sales, the discount rate, and required reserves. Thus, it revolves around monetary policy and creates different ways to alter and affect how the economy is running.
The most important thing that the bureaucracy does is implement policy. Congress and the President make the policies and laws, but they have someone else (the bureaucracy) to implement them. However, they also make policy by rule-making (process of defining rules or standards that apply uniformly to classes of individuals, events, and activities). Also, according to Jillson (2016), "Congress passes laws that authorize government programs, the bureaucracy then writes specific rules that define how the program will be administered." So, when the bureaucracy makes rules you have to obey them because they have the force of law.
The Federal Reserve runs and manages our economy on a daily basis, including the regulation of tax rates and controlling how much cash have in circulation. In the US economy, “[the]
The Federal Bureaucracy is an organization of non-elected officials of government or organization who implement the rules, laws, and functions of their institutions. Essentially, Congress and the president create laws that are vague. The bureaucracy is responsible for figuring out how to implement these vague laws in our society through regulations, forms and rules. The Bureaucracy consists of 500 departments with roughly 2.6 million employees. Although, the bureaucracy is not actually a branch of government it does have influence over the decisions of the three branches government.
When the three branches of government were created a system of “check and balances” was built into the Constitution in order to keep one branch of government from becoming too large and too powerful. Actions that are taken by one branch of government affect the other branches, thereby introducing “oversight”. The intelligence community has both internal and external oversight. The internal oversight comes from the CIA Inspector General that is embedded within the intelligence community. The external oversight comes from both the executive and legislative branches of the government.
Timberlake continues to state, “The Fed [Federal Reserve], having complete control over the quantity of dollars, controls the money market. It can and must use that control for just one goal: stability in the price level and the value of the dollar. ”(p.310) Read that last quote just one more time. “The Fed, having complete control over the quantity of dollars” The Federal Reserve has absolute power over every single aspect of our economy, yet there have been economic collapses of enourmous proportions over the past 80 years.
The government doesn’t see it is always constant and it’s a pattern which they see, but they choose not to do anything about it. Many people feared the abuse of power with congress and make the world worst and the economy even worst.
" The lawmaking institution also possesses the traditional legislative power of the purse (to tax, spend, and borrow money for
During the birth of our government, our country’s leaders promised our democracy would be the government of the people, by the people, and for the people.(Bernie Sanders) In our current society, it has been said that our political campaign finance system is corrupt and primarily controlled by billionaires, wealthy donors, and corporations. Many say our government has strayed from the original democracy that our country was built upon. Despite this claim, if monetary restrictions for campaigning were set then there would be controversy due to wealthy supporters and corporations wanting to support political candidates. Millionaires and wealthy organizations might come together to form super PACs.
