Employment Act (1946)

1) Link to the Text of the Act
Read the statute (15 U.S.C. §§ 1021–1022)

2) Why It Was Done
Passed after World War II to ensure economic stability, the Act declared it the policy of the federal government to promote maximum employment, production, and purchasing power. It aimed to prevent another depression and manage the postwar economic transition.

3) Pre-existing Law or Constitutional Rights
Before this Act, there was no statutory requirement for the federal government to pursue full employment or economic growth. The Act was based on Congress’s powers under the Commerce Clause.

4) Overreach or Proper Role?
Supporters saw it as a responsible acknowledgment of the federal role in stabilizing the economy. Critics worried it set vague economic promises that could justify government overreach in markets.

5) Who or What It Controls

• President (required to submit an annual Economic Report)
• Congress (received guidance on economic policy)
• Council of Economic Advisers (CEA) (created to advise the President)
• Joint Economic Committee (JEC) (created to review the President’s economic policy)

6) Key Sections / Citations

• 15 U.S.C. § 1021: Federal government commitment to economic stability
• 15 U.S.C. § 1022: Creation of the Council of Economic Advisers (CEA)

7) Recent Changes or Live Controversies

• Amended by the Full Employment and Balanced Growth Act of 1978 (Humphrey–Hawkins Act), which added inflation control to employment goals.
• Still cited in debates about whether government should prioritize jobs, growth, or price stability.
• Forms the foundation of modern U.S. macroeconomic policy reporting.

8) Official Sources

• Congress.gov – Employment Act of 1946
• U.S. Code – 15 U.S.C. §§ 1021–1022
• Council of Economic Advisers – History

• Economy
• Employment
• Federal Reserve
• Postwar Economy
• Policy