Final answer:
Independent executive agencies are specialized entities reporting to the president and not part of any government department, whereas regulatory agencies enforce specific laws and regulations, reporting to Congress. Regulatory agencies, such as the OSHA and FCC, tend to have substantial enforcement abilities. Government corporations like USPS operate on quasi-business models, reinvesting profits rather than paying dividends.
Step-by-step explanation:
Difference Between Independent and Regulatory Agencies
The main difference between an independent executive agency and a regulatory agency is their function and authority within the government. Independent executive agencies, such as the Central Intelligence Agency (CIA) and the National Aeronautics and Space Administration (NASA), report directly to the president, perform highly specialized tasks, and are not part of any government department. In contrast, independent regulatory agencies like the Occupational Safety and Health Administration (OSHA) and the Federal Communications Commission (FCC) have the power to enforce laws and regulations that pertain to specific industries or concerns, reporting directly to Congress for oversight.
Regulatory agencies emerged as a result of progressive reforms aimed at monitoring and moderating the impacts of industrialization. An example of this is the Interstate Commerce Commission (ICC). They have grown in power and responsibility over time, like in the case of the Securities and Exchange Commission (SEC), which now plays a significant role in overseeing digital financial transactions.
Government corporations differ from these agencies in that they manage quasi-business enterprises, like the United States Postal Service (USPS), operating without tax obligations and reinvesting profits into sustaining the service they provide, rather than distributing profit as dividends to shareholders like in the private sector.