Employment Act

What does Employment Act mean?

The Employment Act was passed by the U.S. Congress in 1946 under the direction of President Truman. The goal of the act was to help the Federal Government with the "responsibility of maintaining a high employment level of labor and price stability."

Major Provisions of the Employment Act

The Employment Act had several major provisions. First, it declared that the government had the responsibility to "coordinate and utilize all its plans, functions, and resources available to help create and maintain conditions which could facilitate employment opportunities for individuals who were willing to work."

The President was tasked with creating programs to accomplish the aforementioned goal. To accomplish this goal the President called on citizens and leaders within industry, labor, and agriculture, state and local governments, and the Federal Government.

The Act specifically created a joint Congressional Committee consisting of seven Members of the Senate and seven Members of the House. It also created in the Executive Office of the President a Council of Economic Advisers. This Council would include three members who would be appointed by the President and approved by the Senate. The task of the Council would be to prepare economic policies and programs.

Under the bill the President is also required to provide an annual economic report in addition to a national budget. The report is supposed to help estimate the employment rate for the following year. If the employment rate is too low, the report should also include some policy updates to reach the employment goal.

Opposition to the Employment Act

Opposition to the Employment Act was strong from some Republicans as well as those in the business community. Republicans feared too much government regulation in the nation's free enterprise system through compensatory spending to increase employment levels could be dangerous. They also argued that market forces are better at pushing the nation towards full employment than government intervention.

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