U.S. Economic Institutions

The Treasury Department• An executive department, established in 1789• Secretary of the Treasury– Head of the department and a member of the

President’s cabinet;– Current Treasury Secretary: Timothy Geithner

• Responsibilities:– Manages the government’s finances and accounts;– Advises on domestic and international financial,

economic, monetary, trade and tax policy;– Collects all taxes, duties and other monies owed to

the U.S. and investigates/prosecutes all tax evaders, counterfeiters, forgers, smugglers etc.

The Money Makers• Bureau of Engraving and

Printing– Division of the Treasury Dept.– Responsible for designing and

producing all paper currency for the Federal Reserve;

– Creates the anti-counterfeit technology used in U.S. currency

• U.S. Mint– Division of the Treasury Dept.– Responsible for designing and

producing all coins

The Taxman

• The Internal Revenue Service (IRS) – Division of the Treasury Dept.– 16th Amendment gives

Congress the power to tax income

• Responsibilities:– Tax collection– Tax law enforcement

The Bank• The Federal Reserve (a.k.a. “The

Fed”) is the central banking system of the U.S.– An independent government agency – created in 1913 by Congress and

President Woodrow Wilson• Current Chairman – Ben Bernanke• Responsibilities:– Establishes the nation’s monetary

policy through it’s ability to control the money supply and influence interest rates;

– Supervises and regulates U.S. banking and financial institutions

The Watchdog• Securities and Exchange

Commission (SEC) – an independent government

agency – Established by Congress in 1934,

after the great crash of 1929

• Responsibilities:– Enforce federal securities law – Regulate the stock market and

protect investors from corporate abuse

The Safety Net• Federal Deposit Insurance Corporation (FDIC)– An independent government agency– Established in 1933 in response to the thousands of

bank failures during the Great Depression• Intended to restore/promote public confidence in the U.S.

banking system

• Responsibilities:– Currently insures individual deposits up to $250,000– Funded through the premiums charged to

participating banks, backed by the federal government