TOPIC: Part I: Humphrey-Hawkins Act and Unemployment Document #1: The Humphrey Hawkins Act
The Great Depression of the 1930’s marked the worst economic period in American history, with unemployment reaching as high as 25% in 1933 and remaining solidly in the teens throughout the 1930’s. After World War II, Congress passed the Employment Act of 1946 (also known as the Humphrey-Hawkins Act), which stated that it was the policy and responsibility of the federal government to use all practical means to promote maximum employment (most individuals who are willing to work at the current wage and price level are working), economic growth (are we producing newly produced goods and services) and purchasing power (people are able to purchase goods because of price stability). Each goal also has an indicator to measure it: full employment is measured by the unemployment rate, economic growth is measured by the Real Gross Domestic Product Rate (RGDP Rate) and price stability is measured by the Inflation Rate.

What was the Employment Act of 1946? Why do you think it was passed in 1946?

How does the Employment Act mark a change of policy from Early American History?

Why would the government say the goals of full employment, economic growth and price stability are the three main indicators of a healthy economy?