Employment Act Of 1946

DEFINITION of 'Employment Act Of 1946'

An act of legislation enacted by the United States Congress that charged the government with the responsibility of maintaining a high employment level of labor and price stability. These two goals are in direct conflict with each other, because as full employment is achieved consistently over time, demand-pull inflation will result.

BREAKING DOWN 'Employment Act Of 1946'

The employment act of 1946, which was enacted under President Truman, resulted in the Council of Economic Advisors. The council is charged with assisting the President in preparing the annual economic report, advising the President on certain policies, and collect economic data and report on the economic growth and trends within the U.S. economy.

RELATED TERMS
  1. Demand-Pull Inflation

    A term used in Keynesian economics to describe the scenario that ...
  2. Securities Act Of 1933

    A federal piece of legislation enacted as a result of the market ...
  3. Stabilization Policy

    A macroeconomic strategy enacted by governments and central banks ...
  4. Credit Card Accountability, Responsibility ...

    This act was designed to limit the manner in which credit card ...
  5. Reciprocal Statutes

    Legislation enacted between two or more states promoting commerce. ...
  6. General Employer

    An employer who loans an employee to another business, and who ...
Related Articles
  1. Markets

    Explaining Demand-Pull Inflation

    In demand-pull inflation, the demand for goods increases ahead of the supply.
  2. Markets

    Cost-Push Inflation Versus Demand-Pull Inflation

    Gain a deeper understanding of aggregate supply and demand, forces which raise the price of goods and services.
  3. Markets

    What You Need To Know About The Employment Report

    This widely watched indicator of economic well-being directly influences the market.
  4. Markets

    Macroeconomics: Inflation

    By Stephen Simpson Inflation is a key concept in macroeconomics, and a major concern for government policymakers, companies, workers and investors. Inflation refers to a broad increase in prices ...
  5. Markets

    The President's Council Of Economic Advisers

    We'll look at the history of the Council, describe its functions and explore some of its most important decisions.
  6. Markets

    Breaking Down the Federal Reserve's Dual Mandate

    The Fed has been tasked with a dual mandate by Congress to achieve monetary stability. We explain what the dual mandate is and what it means.
  7. Markets

    Employability, The Labor Force And The Economy

    Individuals do not have absolute control of their employability since employability is also affected by market and economic conditions.
  8. Markets

    What Qualifies as Full Employment?

    Full employment is an economic term describing a situation where all available labor resources are being utilized to their highest extent.
  9. Markets

    America’s Labor Market: Hidden Distortions and Uncertain Forecasts

    Employment reports released by the Bureau of Labor Statistics have a profound impact on political, business, consumer, and investor behavior.
  10. Markets

    Cost-Push Inflation Versus Demand-Pull Inflation

    Do you remember how much less you paid for things ten years ago? That’s inflation at work.
RELATED FAQS
  1. What impact does economics have on government policy?

    Learn about the impact of economic conditions on government policy and understand how governments engineer economic conditions ... Read Answer >>
  2. Why is the employment figure important to a "dove"

    Learn why the employment figure is important to "doves." Central banks have competing objectives of economic growth and price ... Read Answer >>
  3. How are investment banks regulated in the United States?

    Read about the extensive regulations placed on investment banks in the United States, beginning with the Glass-Steagall Act ... Read Answer >>
  4. Why might two companies calculate capital employed differently?

    See why not every company defines and measures capital employed in the same manner, and which methods are most common in ... Read Answer >>
  5. What are the major laws (acts) regulating financial institutions that were created ...

    Read about the major federal responses to the financial crisis of 2008, such as the Dodd-Frank Wall Street Reform Act and ... Read Answer >>
  6. What is the Dodd-Frank Act? How does it affect me?

    The Dodd-Frank Wall Street Reform and Consumer Protection Act is a massive piece of financial reform legislation passed by ... Read Answer >>
Hot Definitions
  1. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  2. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  3. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  4. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  5. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  6. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
Trading Center