Employment Act

United States [1946]

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June 26, 2026

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The Employment Act of 1946 declared it the continuing policy of the U.S. federal government to promote maximum employment, production, and purchasing power. This legislation was influenced by the economic theories of John Maynard Keynes, who argued that governments should actively pursue stabilization policies to prevent prolonged periods of high unemployment. The act established a three-member Council of Economic Advisers to assist the president in analyzing the economy and proposing programs to maintain a healthy national economy. This marked a significant shift towards government intervention in economic affairs to ensure stability and prosperity.123

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government economic policy
Stabilization theory
…the United States in the Employment Act of 1946, which stated: “The Congress hereby declares that it is the continuing policy and responsibility of the Federal Government to . . . promote maximum employment, production and purchasing power.” The Employment Act was less specific as to policy than the British…
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…the United States in the Employment Act of 1946, which stated: “The Congress hereby declares that it is the continuing policy and responsibility of the Federal Government to . . . promote maximum employment, production and purchasing power.” The Employment Act was less specific as to policy than the British…
Read More

Council of Economic Advisers
…council was created by the Employment Act of 1946, which was signed into law on February 20, 1946, by Pres. Harry S. Truman. The legislation was stimulated by two major considerations. The first, a holdover from the Depression era, was the practical concern that a peacetime economy would not be…
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…council was created by the Employment Act of 1946, which was signed into law on February 20, 1946, by Pres. Harry S. Truman. The legislation was stimulated by two major considerations. The first, a holdover from the Depression era, was the practical concern that a peacetime economy would not be…
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organized labour
Establishment of industrial unionism
…policy (as specified by the Employment Act of 1946) responsible for maintaining long-term demand, and price competition firmly controlled by the restored oligopolistic structures of the major industries (or, as in the transportation and communications sectors, by direct state regulation), the market-driven basis for American antiunionism seemed to have run…
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…policy (as specified by the Employment Act of 1946) responsible for maintaining long-term demand, and price competition firmly controlled by the restored oligopolistic structures of the major industries (or, as in the transportation and communications sectors, by direct state regulation), the market-driven basis for American antiunionism seemed to have run…
Read More