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February 13, 1946 Draft prepared by Bureau of the Budget STATEMENT OF THE PRESIDENT ON SIGHBfc THE EMPLOYMENT ACT OF 1946 I have signed today the Employment Act of 1946* On this occasion it is wor th pausing a moment to appraise this legislation in its broad historical perspective. In enacting this legislation the Congress and the President are responding to an overwhelming demand of the people* This popular demand is more than a passing whim. The legislation gives expression to a deepseated desire for a conscious and positive attack upon the perennial problems of mass uenmployraent and ruinous depression. Within three years after the First World «ar, we experienced farm ftrsclosures, business failures, and mass unemployment. In fact, the history of the last several decades has been one of speculative booses alternating with deep depression* The people have found themselves de fenseless in the face of economic forces beyond their control* Simile r experiences in other countries where democracy was less deeply rooted led to despair and the surrender of freedom* In this country a large majority of the people prefer to live and work under free com petitive enterprise* The people insist, however, that democratic government has the responsibility to use all its resources to create and maintain conditions under which free competitive enterprise can operate effectively— conditions under which there is an abundance of employment opportunity for those who are able, willing, and seeking to work* In accepting this concept of the government* s responsibility, the people do not believe that it is the government’ s duty to supplant the efforts of private enterprise to find markets or of individuals to find jobs* The people do expect the government to create and maintain condi tions in which the individual businessman and the individual job seeker have a chance to succeed fcy their own efforts* That is the objective of the Employment Act of 1946* The major provisions of this important legislation can be briefly summarized* 1* The Act declares that it is **the continuing policy and responsi bility of the Federal Government * * * to coordinate and utilize all its plans, functions, and resources for the purpose of creating and maintaining conditions under which there will be afforded useful employment opportunitie - 2 - including self-employment, for those able, willing, and seeking to work...” As Senator Murray said in his excellent statement of February 8, 194.6, on the floor of the Senate* "Instead of using the words ’ full employment1 the bill uses the accepted definition of full employment.” The Congress by this declaration has accepted a great responsibility, a responsibility so great that some members of the Congress hesitated to accept it. This hesitation has affected the language of the Act in its final form but not its substance* It does lay down an unmistakable policy and it provides a procedure for reaching our employment goals. 2. The Congress has placed on the President the duty of formulating programs designed to a ccomplish the purpose of the Act. In signing this Act, I accept this responsibility, which I believe is in line with the responsibility placed on the President by the Constitution. This task is so great that I can perform it only with the full and unqualified cooper ation of all who are sincerely interested in the general welfare inside and outside the government. Making this Act work mast become one of the prime objectives of all of us: citizens generally, industry, labor, and agricul ture, State and local governments, and the Federal Government. 3* The Act includes a significant provision that will facilitate cooperation between the Executive and the Congress in the formulation of policies and programs to accomplish the objectives of the Act. It estab lishes a joint Congressional Committee consisting of seven Members of the Senate and seven Members of the House* This committee is given an assign ment of great scope and the highest importance* The success or failure of the Act will be determined largely by the success or failure of the Joint Committee. 4. The Act establishes in the Executive Office of the President a Council of Economic Advisers, composed of three members to be appointed by the President with the consent of the Senate. The new Council will be an important addition to the facilities available for preparing economic poli cies and programs. In carrying on this work, I expect the fullest coopera tion between the Council, the Cabinet, and the several divisions of the Executive Office. * * # * * I am happy that the Senate adopted this legislation unanimously, the Boise of Representatives by a large majority. The result is not all I had hoped for, but I congratulate Members of both Houses and their leaders upon their constructive and fruitful efforts. * The Employment Act of 1946 is not the end of the road, but rather the beginning. It is a commitment by the government to the people— a commit ment to take any and all of the measures necessary for a healthy economy, one that provides opportunities for those able, willing, and seeking to work* We shall honor that commitment. signal event on our journey forward. The Employment Act of 1946 is a
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