Professional Documents
Culture Documents
ABSTRACT
The bill introduced by Hawkins and Reuss, and its Senate coun-
terpart introduced August 22, 1974 by Senator Hubert H. Humphrey
(D., MN) ,5 sought to establish in law a personal right for all Ameri-
cans willing and able to work an opportunity for employment that
would be enforceable in court; require the President to submit an
annual economic report to Congress with recommendations that would
assure full employment; expand the Local Planning Councils under
CETA to assess community needs and create a reservoir of public
service projects as a potential for job references; provide for the
delivery of an actual job by a Job Guarantee Office, an organiza-
tional unit in the proposed U.S. Full Employment Service; create a
Standby Jobs Corps for jobs of last resort if the private sector could
not supply adequate employment; and require a full employment
society within five years of enactment.
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afforded useful employment for those able, willing, and seeking to
work, and to promote maximum employment, production, and pur-
chasing power." Subsequent sections of the 1946 Employment Act
provide the statutory basis for the annual economic report of the
President, the Council of Economic Advisers, and the Joint Economic
Committee of Congress.
PRESIDENTIAL POLITICS.
The 1976 Campaign and Election. As the 1976 presidential campaign
got underway, many Democratic party leaders sought to exploit the
unemployment problem—and Humphrey-Hawkins was looked to as the
appropriate legislative vehicle. Hubert Humphrey and his staff, as
well as organized labor, however, were very concerned with the cost
of some of the specific provisions of Humphrey-Hawkins. Humphrey
and other Democratic leaders feared that the bill had the potential of
becoming an "albatross" around the neck of any Democratic party
presidential candidate, as the guaranteed annual income had to George
McGovern in his 1972 presidential bid. Already, the Republican admin-
istration had publicly attacked the cost of the bill, estimated at
$30-60 billion annually.
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Representatives of organized labor, Humphrey's office, and
Hawkins' office met to discuss their concerns. After long and pro-
tracted negotiations, a new version of Humphrey-Hawkins—one that
could safely be used as a presidential campaign issue—was agreed
upon.
CONGRESSIONAL POLITICS.
The House. The Carter endorsed versions of HR 50 and S 50 were
introduced on the first day of the second session of the 95th Con-
gress. On February 8, 1978, the Employment Opportunities Subcom-
mittee of the House Education and Labor Committee, chaired by
Augustus Hawkins, approved the latest version of Humphrey-Hawkins.
The Subcommittee had rejected an amendment by Ronald A. Sarasin
(R, CT) that would have set a goal for reducing inflation to 3
percent by 1983. This amendment was subsequently rejected by the
full committee.
The Senate. In the Senate the bill was jointly referred to the Com-
mittee on Human Resources and the Committee on Banking, Housing,
and Urban Affairs. The Human Resources Committee, led by Employ-
ment, Poverty, and Migratory Labor Subcommittee Chairman Gaylord
Nelson (D., WI) and ranking Republican Jacob Javits, reported the
bill out without major changes on April 13, 1978. The Banking,
Housing, and Urban Affairs Committee, however, added four sub-
stantial amendments before approving the bill on June 28, 1978. Two
of these set goals of 0 percent inflation, and a balanced budget
by 1983. The other two were Chairman William Proxmire's (D., WI)
amendment which set a goal of limiting the federal budget to a maxi-
mum of 20 percent of the gross national product, and an amendment
offered by John Tower (R., TX) which gave the President the power
to modify the unemployment goal, of 4 percent or less by 1983, in
his first economic message subsequent to the bill's passage. The
differences between the two committee versions of the bill—particu-
larly the inclusion of the inflation goal by Banking—made it difficult
for the two committees to write up a joint report on the legislation.
The joint report, filed on September 6, 1978, followed two months of
tough negotiations in which few of the differences were resolved. ^5
Later on in the day, the Senate dealt with the inflation goal.
The version beiore the Senate called for an inflation goal of 3 percent
by 1983, and 0 percent by 1988. This inflation goal, however, was
not to "impede" achievement of the unemployment goals. Senators
Muskie and Muriel Humphrey (D., MN) offered an amendment calling
for a goal of reducing inflation to 3 percent "at the earliest possible
date." Their amendment—in what was perhaps the key vote on
Humphrey-Hawkins—was defeated by a coalition of Humphrey-Hawkins
supporters, who feared a filibuster if the amendment were approved,
and opponents of the bill.
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3 percent by 1983 and 0 percent by 1988.
ABSTRACT