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Bureaucracies are hierarchical organizations characterized by a division of labor and extensive procedural rules. In addition to governments, major corporations and universities have bureaucratic organizations.
Several theories have been offered to describe bureaucracies. The Weberian model posits that bureaucracies are rational, hierarchical organizations in which decisions are based on logical reasoning. The acquisitive model views top-level bureaucrats as pressing for ever-larger budgets and staffs to augment their power. The monopolistic model focuses on the environment in which most government bureaucracies operate, stating that bureaucracies are inefficient and excessively costly to operate because they have no competitors.
Since the founding of the United States, the federal bureaucracy has grown from 50 to about 2.6 million employees (including the U.S. Postal Service, but excluding the military). Federal, state, and local employees together make up about 16 percent of the nation's civilian labor force. Social Security, Medicare, Medicaid, and military defense are the largest components of federal spending. Major sources of federal revenue include individual and corporate income taxes, Social Security and Medicare payroll taxes, and borrowing.
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