Employment Act of 1946

The Employment Act of 1946 ch. 33, section 2, 60 Stat. 23, codified as 15 U.S.C. § 1021, is a United States federal law. Its main purpose was to lay the responsibility of economic stability of inflation and unemployment onto the federal government. The act did not favor Keynesian policies; indeed, there were few policy consequences because as Stein (1969) notes, "The failure to pass a 'Full Employment Act' is as significant as the decision to pass the Employment Act." The Act created the Council of Economic Advisors, attached to the White House, which provides analysis and recommendations, as well as the Joint Economic Committee. In practice the government has relied on automatic stabilizers and Federal Reserve policy for macroeconomic management, while the Council of Economic Advisers has focused primarily on microeconomic issues.