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[Public L a w 304— 79th C on gress]

[Chapter 33— 2 d S ession ]
[S. 380]

T o declare

a national policy on employment, production, and purchasing power,
and for other purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
short title

S ection L This Act may be cited as the “Employment Act of 1946*.
declaration op policy

S e c . 2. The Congress hereby declares that it is the continuing policy
und responsibility of the Federal Government to use all practicable
means consistent with its needs and obligations and other essential
considerations of national policy, with the assistance and cooperation
of industry, agriculture, labor, and State and local governments, to
coordinate and utilize all its plans, functions, and resources for the
purpose of creating and maintaining, in a manner calculated to foster
and promote free competitive enterprise and the general welfare, con­
ditions under which there will be afforded useful employment oppor­
tunities, including self-employment, for those able, willing, and seeking
to work, and to promote maximum employment, production, and
purchasing power.
economic report of the president

S e c . 3. (a) The President shall transmit to the Congress within
sixty days after the beginning of each regular session (commencing
with the year 1947) an economic report (hereinafter called the “Eco­
nomic Report’*) setting forth (1) the levels of employment, produc­
tion. and purchasing power obtaining in the United States and such
levels needed to carry out the policy declared in section 2; (2) cur­
rent and foreseeable trends in the levels of employment, production,
and purchasing power; (3) a review of the economic program of the
Federal Government and a review of economic conditions affecting
employment in the United States or any considerable portion thereof
during the preceding year and of their effect upon employment, pro­
duction, and purchasing power; and (4) a program for carrying out
the policy declared in section 2, together with such recommendations
for legislation as he may deem necessary or desirable.
The President may transmit from time to time to the Congress
reports supplementary to the Economic Report, each of which shall
include such supplementary or revised recommendations as he may
deem necessary o r desirable to achieve th e policy declared in section 2.


[P ub . L aw 304.J


The Economic Report, and all supplementary reports trans­
mitted under subsection (b), shall, when transmitted to Congress, be
referred to the joint committee created by section 5.

Sec. 4. (a) There is hereby created in the Executive Office of the
President a Council of Economic Advisers (hereinafter called the
“Council”). The Council shall be composed of three members who
shall be appointed by the President, by and with the advice and consent
of the Senate, and each of whom shall be a person who, as a result of
his training, experience, and attainments, is exceptionally qualified to
analyze and interpret economic developments, to appraise programs
and activities of the Government in the light of the policy declared in
section 2, and to formulate and recommend national economic policy
to promote employment, production, and purchasing power under free
competitive enterprise. Each member of the Council shall receive
compensation at the rate of $15,000 per annum. The President shall
designate one of the members of the Council as chairman and one as
vice chairman, who shall act as chairman in the absence of the
(b) The Council is authorized to employ, and fix the compensation
of, such specialists and other experts as may be necessary for the
carrying out of its functions under this Act, without regard to the
civil-service laws and the Classification Act of 1923, as amended, and
is authorized, subject to the civil-service laws, to employ such other
officers and employees as may be necessary for carrying out its func­
tions under this Act, and fix their compensation in accordance with
the Classification Act of 1923, as amended.
(c) It shall be the duty and function of the Council—
(1) to assist and advise the President in the preparation of the
Economic Report;
(2) to gather timely and authoritative information concerning
economic developments and economic trends, both current and
prospective, to analyze and interpret such information in the light
of the policy declared in section 2 for the purpose of determining
whether such developments and trends are interfering, or are
likely to interfere, with the achievement of such policy, and to
compile and submit to the President studies relating to such
developments and trends;
(3) to appraise the various programs and activities of the
Federal Government in the light of the policy declared in sec­
tion 2 for the purpose of determining the extent to which such
programs and activities are contributing, and the extent to which
they are not contributing, to the achievement of such policy, and
to make recommendations to the President with respect thereto;
(4) to develop and recommend to the President national eco­
nomic policies to foster and promote free competitive enterprise,
to avoid economic fluctuations or to diminish the effects thereof,
and to maintain employment, production, and purchasing power;
(5) to make and furnish such studies, reports thereon, and
recommendations with respect to matters of Federal economic
policy and legislation as the President may request.


IP ub. L aw 304.J

(d) The Council shall make an annual report to the President in
December of each year.
(e) In exercising ns powers, functions and duties under this Act—
(1) the Council may constitute such advisory committees and
may consult with such representatives of industry, agriculture,
labor, consumers, State and local governments, and other groups,
as it deems advisable ;
(2) the Council shall, to the fullest extent possible*, utilize the
services, facilities, and information (including statistical infor­
mation) of other Government agencies as well as of private
research agencies, in order that duplication of effort and expense
may be avoided.
(f) To enable the Council to exercise its powers, functions, and
duties under this Act, there are authorized to be appropriated (except
for the salaries of the members and the salaries of officers and
employees of the Council) such sums as may be necessary. For the
salaries of the members and the salaries of officers and employees of
the Council, there is authorized to be appropriated not exceeding
$345,000 in the aggregate for each fiscal year.






Sec. 5. (a) There is hereby established a Joint Committee on the
Economic Report, to be composed of seven Members of the Senate,
to be appointed by the President of the Senate, and seven Members
of the House of Representatives, to be appointed by the Speaker of
the House of Representatives. The party representation on the
joint committee shall as nearly as may be feasible reflect the relative
membership of the majority and minority parties in the Senate and
House of Representatives.
(b) It shall be the function of the joint committee—
(1) to make a continuing study of matters relating to the
Economic Report;
(2) to study means of coordinating programs in order to
further the policy of this Act; and
(3) as a guide to the several committees of the Congress deal­
ing with legislation relating to the Economic Report, not later
than May 1 of each year (beginning with the year 1947) to file
a report with the Senate and the House of Representatives
containing its findings and recommendations with respect to each
of the main recommendations made by the President in the
Economic Report, and from time to time to make such other
reports and recommendations to the Senate and House of Repre­
sentatives as it deems advisable.
(c) Vacancies in the membership of the joint committee shall not
affect the power of the remaining members to execute the functions of
the joint committee, and shall be filled in the same manner as in the
case of the original selection. The joint committee shall select a chair­
man and a vice chairman from among its members.
(d) The joint committee, or any duly authorized subcommittee
thereof, is authorized to hold such hearings as it deems advisable, and,
within the limitations of its appropriations, the joint committee is
empowered to appoint and fix the compensation of such experts, con­
sultants, technicians, and clerical and stenographic assistants, to pro­

[P ub . L a w 304.]


cure such printing and binding, and to make such expenditures, as it
deems necessary and advisable. The cost of stenographic services to
report hearings of the joint committee, or any subcommittee thereof,
shall not exceed 25 cents per hundred words. The joint committee is
authorized to utilize the services, information, and facilities of the
departments and establishments of the Government, and also of
private research agencies.
These is hereby authorized to be appropriated for each fiscal
year, the sum of $50,000, or so much thereof as may be necessary, to
carry out the provisions of this section, to be disbursed by the Secretary
of the Senate on vouchers signed by the chairman or vice chairman.
Approved February 20, 1946.