Chapter 2 examines the scope and function of government, paying special attention to the different layers of government. Many of the public’s fears about government are based on profound misunderstandings about the nature of governmental activity. Different levels of government concentrate on different kinds of services, although administrators at all levels are charged with the task of effectively, efficiently, and responsively implementing public programs with accountability. During the last four decades, the federal government has doubled spending on entitlements while cutting defense spending by more than half. On the other hand, state governments have remained consistent in financing welfare, higher education, and highways in addition to receiving and administering federal grants. Local governments of all shapes and sizes concentrate far more on the direct delivery of services than the other levels of government. Government has grown fastest at the state and local levels.

Public Administration scholar, Christopher C. Hood, uses the metaphor of “administrative tools” to describe the way government works. The basic tools of government include direct tools and indirect tools. Direct tools involve the provision of goods and services, such as police and fire protection. Indirect tools, which are being used more frequently include contracts with nongovernmental partners to implement government programs; grants to encourage other levels of government to take on tasks and services they might not otherwise; regulations to expand government’s power while expending relatively little money; tax expenditures to give taxpayers special advantages in paying their taxes; and loan programs to enhance the ability of individuals and private organizations to borrow private money to pursue projects in the public’s interest. The implications for the field of public administration include the following: the job of government varies by level, the job of government varies by function, and the job of government varies in who finally provides the goods and services.