4.6 • 848 Ratings
🗓️ 26 February 2025
⏱️ 11 minutes
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0:31.8 | Hey folks, Rachel here. Here's a recording of my latest cafe note, authoritarian agencies. As always, please write to us with your thoughts and questions at letters atcafe.com. |
0:48.0 | Dear listener, Trump and Musk are on a self-declared mission to destroy the bureaucracy and the deep state, and one |
0:55.8 | battle in that war is their quest to get rid of so-called independent agencies. These are agencies |
1:01.9 | created by Congress to have a degree of independence from immediate partisan pressures so that they |
1:07.7 | can create more stable policies based on expertise instead of political whims. |
1:12.8 | One valuable tool for establishing some insulation from partisan pressure is to allow the |
1:18.4 | president to remove the heads of these agencies only for cause, such as malfeasance or |
1:23.5 | neglect of their duties, instead of allowing the president to remove someone arbitrarily. |
1:28.6 | A classic example of an independent agency is the Federal Reserve. Its board of governors |
1:33.7 | serve 14-year terms and members can be removed only for cause. Congress established this structure |
1:39.6 | so that monetary policy would not fluctuate in response to political pressures. This independence |
1:45.3 | has been referred to as the cornerstone of good monetary policy, because without it, the obvious |
1:50.9 | danger is an unwise monetary expansion, time to win an election. Congress created many other |
1:57.0 | agencies responsible for financial regulation with similar restrictions on the removal of |
2:02.5 | those who lead them. They include the Securities and Exchange Commission, the Commodity Futures |
2:07.5 | Trading Commission, the Federal Deposit Insurance Corporation, the Federal Trade Commission, |
2:12.6 | and the Consumer Financial Protection Bureau. Congress also gave this structure to other agencies where protection |
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