Full Employment and Balance Growth Act of 1978
Full Employment and Balance Growth Act of 1978(Humphrey-Hawkins Act)
Federal legislation that, among other things, specifies the primary objectives of U.S. economic policy-maximum employment, stable prices, and moderate long-term interest rates.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
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