FULL EMPLOYMENT AS A POLICY ISSUE

Passage of the Humphrey‐Hawkins Full Employment and Balanced Growth Act of 1978 is the most recent step in the development of a national full employment policy. This article traces the origin of the legislative debate over full employment back to the 1940s, the only previous time that Congress gave serious consideration to full employment legislation. It analyzes the conflicting economic and political interests and philosophies that led to the defeat of the Full Employment Bill of 1945 and to passage of weaker legislation, the Employment Act of 1946, which dropped the commitment to full employment. The article then traces the contours of unemployment since World War II: recurrent recessions; significant unemployment between recessions; the unequal distribution of joblessness, hitting hardest at groups such as minorities, women, and youths; and growing urban and regional unemployment. Some of the hidden social, human and economic costs of unemployment are explored. So is the relationship between unemployment and crime, poverty, welfare, the urban crisis and inequality. Full employment reemerged as a major issue in the 1970s because of the impetus from groups whose unemployment problems persist between recessions. Coalitions of these groups pressed for a national policy to secure full employment for all groups. This led to passage of the Humphrey‐Hawkins Act. But the controversy over full employment has not ended. Attempts to implement the Act, the article concludes, may heighten underlying controversies over issues such as inflation, wage, price and profit controls, the environment, and job creation and may make full employment one of the leading domestic issues of the 1980s.