Academic journal article Economic Commentary (Cleveland)

By Act of Congress

Academic journal article Economic Commentary (Cleveland)

By Act of Congress

Article excerpt

The Employment Act of 1946 requires the federal government to pursue "maximum employment, production, and purchasing power."(4) Responsibility for achieving the goals of the Act was not assigned to any specific government entity or to the Federal Reserve System. Rather, the Act expressed appropriate goals for policymakers to strive for using the knowledge and tools available to them.

The Employment Act was amended by the Full Employment and Balanced Growth Act of 1978, also known as the Humphrey-Hawkins Act. That law requires the federal government to pursue several national goals, including"...full employment and production, increased real income, balanced growth, a balanced federal budget, adequate productivity growth...an improved trade balance...and reasonable price stability..."(5)

Like its predecessor, Humphrey-Hawkins states only general goals for the government rather than assigning individual responsibilities for achieving those goals. However, Humphrey-Hawkins is more specific in that it requires the President to establish economic goals consistent with eventually achieving total and adult unemployment rates of 4 percent and 3 percent, respectively. …

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