Prez interpretation of legislative intent

1
Prez interpretation of legislative intent

• Last time affecting economic policy the
  politics of blame
• fiscal policy, monetary policy and the prezs
  advisory role
• Today Interpreting legislative intent

2
Managing the economy

• Fiscal policy taxes, spending, borrowing (the
  budget)
• presidents have an informational role per 1921
  Budget Act also try to use central clearance to
  vet bureaucratic testimony to Congress
• asymmetric veto threats
• presidents have variously been delegated
  discretionary authorities on some limited
  categories of spending
• appointment powers

3
Monetary and banking policies

• the Federal Reserve system
• Privately owned, but publicly controlled
  national banks were required to invest in the Fed
  when it was established
• the Board of Governors of the Fed administers the
  system 7 members nominated by the prez for
  staggered 14-year terms
• FOMC Board members plus 5 bank presidents
• Fed sets reserve ratios (subject to statute)
  sets the discount rate engages in open-market
  operations (buying and selling govt securities
  with policies set by the FOMC)

4
Prez and advisory economic policy

• Employment Act of 1946
• created Jt. Economic Committee in Congress and
  the Council of Economic Advisors
• Council of Economic Advisors helps prez prepare
  annual Economic Report, required by 1946 Act and
  gives prez economic advice
• Jt. Committee receives the annual report and does
  studies/holds hearings no legislative
  jurisdiction
• These are about information transmission and
  position-taking

5
Prez tools for shaping interpretation of
legislative intent

• Signing statements rhetorical device to
  interpret legislative intent
• why should anyone treat as credible statements
  made by the prez at this stage?
• Executive orders quasi-legislative statements
  about leg. intent or decree-like, policy-making
  devices
• under what conditions should bureaucrat action be
  shaped by E.O.s?

6
Deering Maltzman

• executive orders have impact of law when not
  contradicted by statutory language
• Prez can use e.o. to extend the scope of a
  legislative delegation, but not so easily to
  restrict that scope
• Prez. can use implied powers to issue
  quasi-legislative proclamations,
• such e.o.s are hard to defend against
  legislative opposition
• but if Cong. is internally divided, prez can take
  initiative
• When Cong. majority and prez agree on goals,
  Cong. delegates broader discretion and leaves
  room for prez. interpretation of the details
• When Cong. maj. and prez disagree on goals, Cong.
  should be more specific in legislation and/or
  impose greater procedural requirements to limit
  room for prez interpretation