Full Employment and Balanced Growth Act of 1978

Full Employment and Balanced Growth Act of 1978

Legislation in the United States, enacted in 1978, that sought to curtail the stagflation that marked most of the 1970s. The Act set up four goals for the federal government: full employment, economic growth, balanced budget, and elimination of inflation. It stated that the government preferred private investment to accomplish these goals, but, if it was not forthcoming, then the government could make investments to spur demand and, if necessary, create make-work jobs along the lines of the New Deal. It set goals to be reached by certain dates; for example, it stated that inflation should be 4% by 1983 and 0% by 1988. Critics of the Act maintained that the four goals are different and that it is often impossible to fulfill them all.