conglomerate banking and industrial corporations that operate on a global basis with no particular allegiance to any "market" (i.e. nation state) in which they operate.

Of course, this is not the whole of the American economy--and indeed, there is less and less reason to regard the American-based multinationals as “American." If they can make more money by upsetting the American currency or economy, that's too bad-it's a problem for the public relations department. The American economy, in contrast, includes three other major components: medium-sized business, small business and the public and non-profit sector. Each of these four sectors-the giant multinational, medium-sized business, small business and the public and non-profit sector-operates in a different kind of labor market, has a different relation to genuine full employment and, a different relationship to inflationary pressures.

My own view is that with appropriate government policies toward small and medium-sized business-now provided so generally to giant business-the full employment program contemplated in the proposed “Equal Opportunity and Full Employment Act of 1976" would strengthen the smaller and more competitive sectors of American business and allow them to compete more adequately with big business by providing good wages instead of substandard wages. In fact, I view the legislation before this committee as the most important small business legislation that has been placed before the Congress.

Accordingly, it is my hope that in considering this legislation in the more intensive hearings special attention will be focussed on the great potentials for increased employment opportunities in small and medium-sized firms and, on the entire question of the relation between guaranteed full employment and the changing American business system.

Mr. HAWKINS. The subcommittee is adjourned, subject to the call of the chairman.

[Whereupon, at 12:05 p.m. the subcommittee was adjourned, subject to the call of the chairman.]

APPENDIX

A FULL EMPLOYMENT BILL

The text of the bill is as follows:

SECTION 1. This Act may be cited as "The Full Employment Act of 1945.”

DECLARATION OF POLICY

SEC. 2. The Congress hereby declares that

(a) Every American able to work and willing to work has the right to a useful and remunerative job in the industries, or shops, or offices, or farms, or mines of the Nation;

(b) It is the responsibility of the Government to guarantee that right by assuring continuing full employment; and

(c) It is the policy of the Government to assure continuing full employment by (1) encouraging, to the fullest extent possible without Federal investment and other expenditures, the highest feasible levels of employment by private enterprise, (2) providing whatever volume of Federal investment and other expenditure may be needed to assure continuing full employment.

SEC. 3. The Budget and Accounting Act of 1921, as amended, is hereby amended, by inserting immediately following section 217 of title III a new title, to be title IV, which shall read as follows:

"TITLE IV, THE NATIONAL PRODUCTION AND EMPLOYMENT BUDGET

"SEC. 401. (a) In addition to the estimates and other information called for in section 201 of the Budget and Accounting Act of 1921, as amended, the President shall transmit to Congress on the first day of each regular session the National Production and Employment Budget (hereinafter referred to as the 'National Budget'), which shall set forth in summary and detail

"1. The estimated number of jobs needed during the ensuing fiscal year or years to assure continuing full employment, and the estimated dollar volume of the gross national product, at the expected level of prices, required to provide such number of jobs (hereinafter referred to as 'full employment volume of the gross national product');

"2. The estimated volume of investment and other expenditure by private enterprises, consumers, State and local governments, and the Federal Government required during the ensuing fiscal year or years to assure a full employment volume of the gross national product, and

"3. The estimated volume of prospective investment and expenditure by private enterprises, consumers, State and local governments, and the Federal Government during the ensuing fiscal year or years, and the estimates and information herein called for shall take account of such foreign investment and other expenditure for exports and imports as affect the volume of the gross national product.

"(b) If the estimated aggregate volume of prospective investment and other expenditure, as set forth in (a)3 of this section, is less than the estimated aggregate volume of investment and other expenditure required to assure a full employment volume of the gross national product, as set forth in (a)2 of this section, the President shall in the National Budget set forth a general program for encouraging increased non-Federal investment and other expenditures, particularly such investment and expenditure as will promote increased employment in private enterprises, together with such legislative recommendations as he may deem necessary or desirable. Such program may include, but need not be limited to, a presentation of current and projected Federal policies and activities with reference to banking and currency, monopoly and competition, wages and working (67)

conditions, foreign trade and investment, agriculture, taxation, social security, the development of natural resources, and in such other topics as may directly or indirectly affect the level of non-Federal investment and other expenditure. "(c) To the extent that such increased non-Federal investment and other expenditure as may be expected to result from actions taken under the program set forth in accordance with (b) of this section are insufficient to provide a full employment volume of the gross national product, the President shall include, in the Budget transmitted in accordance with section 201 of the Budget investAccounting Act of 1921, as amended, a general program of such Federal investment and other expenditure as will be sufficient to bring the aggregate volume of investment and other expenditure by private business, consumers, State and local government, and the Federal Government, up to the level required to assure a full employment volume of the gross national product. Such program shall be designed to contribute to the national wealth or well-being, and may include, but need not be limited to, specific programs for assistance to business enterprises, particularly small business enterprises; for useful public works, particularly such public works as tend to promote increased investment and other expenditure by private enterprises; for useful public services, particularly such public services as tend to raise the level of health and education; for slum clearance and urban rehabilitation; for conservation and development of natural resources; and for rural electrification. All programs calling for public construction shall provide for the performance of the necessary work by private concerns on the basis of contracts awarded in accordance with applicable laws.

"(d) The President may from time to time transmit to Congress such supplemental or revised estimates, information, programs, or legislative recommendations as he may deem necessary or desirable.

"PREPARATION OF NATIONAL BUDGET

"SEC. 402. (a) In addition to the duties imposed upon the Bureau of the Budget by section 207 of the Budget and Accounting Act of 1921, as amended, the Bureau, under such rules and regulations as the President may prescribe, shall— "(1) With the assistance of the several departments and agencies, prepare for him the information and estimates called for in section 401;

"(2) Cooperate with the several departments and agencies in developing such estimates and programs as may be useful in guiding the preparation of the National Budget.

"(b) The President, through the Bureau of the Budget, shall issue such directives to the several departments and agencies as will enable them to prepare such plans and programs as may be needed during the ensuing or subsequent fiscal years to help achieve a full employment volume of the gross national product."

JOINT COMMITTEE ON THE BUDGET

SEC. 4. (a) There is hereby established a Joint Committee on the Budget, to be composed of six Members of the Senate, to be appointed by the President of the Senate from among the members of the Senate Committees on Appropriations, Finance, and Banking and Currency, and six Members from the House of Representatives to be appointed by the Speaker of the House of Representatives from among the members of the House Committees on Appropriations, Ways and Means, and Banking and Currency, with such party representation as will reflect the relative membership of the majority and minority parties in the Senate and the House of Representatives.

(b) It shall be the function of the Joint Committee on the Budget—

1. To make a detailed study of the information and estimates transmitted to Congress by the President on the first day of each regular session in accordance with section 401 and section 201 of the Budget and Accounting Act of 1921, as amended; and

2. To report to the Senate and the House of Representatives, no later than March 1 of each year, its findings and recommendations on the National Budget, together with a proposed joint resolution setting forth for the ensuing fiscal year a general policy on the total volume of Federal expenditures and other investment, the total receipts to be collected from taxes and other revenue, and the volume of borrowings or net debt retirement, for the purpose of serving as a guide to the individual committees of Congress dealing with such subjects.

(c) Vacancies in the membership of the committee shall not affect the power of the remaining members to execute the functions of the committee and shall be filled in the same manner as in the case of the original selection. The committee shall select a chairman and a vice chairman from among its members.

(d) The committee, or any duly authorized subcommittee thereof, is authorized to sit and act at such places and times, to require by subpena or otherwise the attendance of such witnesses and the production of such books, papers, and documents, to administer such oaths, to take such testimony, to procure such printing and binding, and to make such expenditures as it deems advisable. The cost of stenographic services to report such hearings shall not be in excess of 25 cents per hundred words.

(e) The committee is empowered to appoint and fix the compensation of such experts, consultants, technicians, and clerical and stenographic assistance as it deems necessary and advisable, but the compensation so fixed shall not exceed the compensation prescribed under the Classification Act of 1923, as amended, for comparable duties. The committee may utilize such voluntary and uncompensated services as it deems necessary and is authorized to utilize the services, information, facilities, and personnel of the departments and agencies of the Government.

(f) The expenses of the committee shall be paid one-half from the contingent fund of the Senate and one-half from the contingent fund of the House of Representatives upon vouchers signed by the chairman.

AUTHORIZATION OF FUNDS

SEC. 5. There are hereby authorized to be appropriated such sums as may be necessary to eliminate any deficiency in the National Budget.

RATE OF EXPENDITURES

SEC. 6. (a) The President shall periodically review all Federal expenditures under appropriations for periods of more than one year for the purpose of ascertaining the extent to which the current and anticipated level of non-Federal investment and other expenditure warrants a decrease in such Federal expenditure.

(b) Subject to such principles and standards as may be set forth in individual appropriation acts and other statutes, the rate of Federal expenditure under appropriations for periods of more than one year may be varied to whatever extent and in whatever manner the President, acting through the Director of the Bureau of the Budget, may determine to be necessary for the purpose of assuring continuing full employment, with due consideration being given to current and anticipated variations in savings and in investment and other expenditure by private business, consumers, and State and local governments. SEC. 7. Section 212 of the Budget and Accounting Act of 1921, as amended, is amended to read as follows:

"The Bureau of the Budget shall, at the request of any committee of either House of Congress, furnish the committee with such aid and information as it may request."

SEC. 8. Section 213 of the Budget and Accounting Act of 1921, as amended, shall apply with equal force to the provisions of this title.

SEC. 9. Nothing contained herein shall be construed as calling for or authorizing

(a) The operation of plants, factories, or other productive facilities by the Federal Government;

(b) The use of compulsory measures of any type whatsoever in determining the allocation or distribution of manpower; or

(c) Any change in the existing procedures on appropriations.

SEC. 10. As used in this Act

DEFINITIONS

(a) The term "full employment" means a condition in which the number of persons able to work, lacking work, and seeking work, shall be no greater than the number of unfilled opportunities to work, at locally prevailing wages and working conditions for the type of job available, and not below minimum standards required by law, and in which the amount of fractional unemployment,

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