[Pen-l] Dr. Freud, your slip is showing

["Charles Brown" <charlesb@xxxxxxxxxxxxxxxxxxxxx>]

From: joel blau <jblau@xxxxxxxxx> 



The CEA is the result of the watered down, totally compromised version
of the 1946 Full Employment Act.
-clip-

^^^
Then there's Humphrey-Hawkins: 

Humphrey-Hawkins Full Employment Act

  (Redirected from Full Employment and Balanced Growth Act)

Full Employment and Balanced Growth Act 
U.S. Congress

 
Long title: A bill to establish and translate into practical reality
the right of all adult Americans able, willing, and seeking to work to
full opportunity for useful paid employment at fair rates of
compensation; to combine full employment, production, and purchasing
power goals with proper attention to balanced growth and national
priorities; to mandate such national economic policies and programs as
are necessary to achieve full employment, production, and purchasing
power; to restrain inflation; and to provide explicit machinery for the
development and implementation of such economic policies and programs. 
Introduced by: Augustus Hawkins 
Dates 
Date passed: October 14, 1978 (House of Representatives), October 14,
1978 (Senate) 
Date signed into law: October 27, 1978 
Amendments: None notable, see end of article 
Related legislation: Employment Act of 1946 

The Full Employment and Balanced Growth Act (Pub.L. 95-523, 92 Stat.
1887, enacted October 27, 1978, 15 U.S.C. Â 3101â3152,
Humphrey-Hawkins Full Employment Act), is an act of federal legislation
by the United States government.

Contents [hide]
1 Impetus and strategy 
2 Overview 
3 Amendments 
4 See also 
5 External links 
 


[edit] Impetus and strategy
Unemployment and inflation levels began to rise in the early 1970s,
reviving familiar fears of an economic recession. In the past, the
country's economic policy had been defined by the Employment Act of
1946, which encouraged the federal government to pursue "maximum
employment, production, and purchasing power" through cooperation with
private enterprise. Some Congressmen, dissatisfied with the vague
wording of this act, sought to create an amendment that would strengthen
and clarify the country's economic policy.

As before, Congress turned to Keynesian economic theory for a solution,
which emphasized economic control through manipulation of demand-side
factors. In particular, the government can minimize the shock of
business fluctuations by compensatory spending, essentially inserting
government investment money where private money used to be.

Furthermore, Congress encouraged the government to develop a sound
monetary policy, controlling inflation and pushing toward full
employment by managing the amount and liquidity of currency in
circulation.

As a last resort, Congress believed that unemployment could be
temporarily relieved by the creation of government jobs as they did
during the Great Depression.

Finally, Congress sought to involve more elements of the federal
government in the economic policy process, and to clarify the role of
those elements that were already involved. In particular, the central
bank of the United States, the Federal Reserve, and the Presidency.


[edit] Overview
In response to rising unemployment levels in the 1970s, Representative
Augustus Hawkins and Senator Hubert Humphrey created the Full Employment
and Balanced Growth Act. It was signed into law by President Jimmy
Carter on October 27, 1978, and codified as 15 USC Â 3101.

The Act explicitly instructs the nation to strive toward four ultimate
goals: full employment, growth in production, price stability, and
balance of trade and budget. By explicitly setting requirements and
goals for the federal government to attain, the Act is markedly stronger
than its predecessor. {An alternate view is that the 1946 Act
concentrated on employment, and Humphrey-Hawkins, by specifying four
competing and possibly inconsistent goals, de-emphasized full employment
as the sole primary national economic goal]. In brief, the Act:

Explicitly states that the federal government will rely primarily on
private enterprise to achieve the four goals. 
Instructs the government to take reasonable means to balance the
budget. 
Instructs the government to establish a balance of trade, i.e. to avoid
trade surpluses or deficits. 
Mandates the Board of Governors of the Federal Reserve to establish a
monetary policy that maintains long-run growth, minimizes inflation, and
promotes price stability. 
Instructs the Board of Governors of the Federal Reserve to transmit an
Monetary Policy Report to the Congress twice a year outlining its
monetary policy. 
Requires the President to set numerical goals for the economy of the
next fiscal year in the Economic Report of the President and to suggest
policies that will achieve these goals. 
Requires the Chairman of the Federal Reserve to connect the monetary
policy with the Presidential economic policy. 
The Act set specific numerical goals for the President to attain. By
1983, unemployment rates should be not more than 3% for persons aged 20
or over and not more than 4% for persons aged 16 or over, and inflation
rates should not be over 4%. By 1988, inflation rates should be 0%. The
Act allows Congress to revise these goals as time progresses.

If private enterprise is lacking in power to achieve these goals, the
Act expressly allows the government to create a "reservoir of public
employment." These jobs are required to be in the lower ranges of skill
and pay so as to not draw the workforce away from the private sector.

Perhaps most interestingly, the Act directly prohibits discrimination
on account of gender, religion, race, age, and national origin in any
program created under the Act.


[edit] Amendments
The language of the Full Employment and Balanced Growth Act was amended
twice by riders attached to unrelated or distantly related legislation.

May 10, 1979: Public Law 96-10, attached to H.R. 2283, amended the Act
to include Federal outlays as a proportion of the gross national product
when calculating numerical goals. 
November 5, 1990: Public Law 101-508, attached to the Pollution
Prevention Act, required the Economic Report to the President to be
submitted within twenty days after the start of the session of Congress
instead of within ten days after the submission of the annual budget. 




[edit] See also



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