The Stabilization Act of 1942 (), formally entitled "An Act to Amend the Emergency Price Control Act of 1942, to Aid in Preventing Inflation, and for Other Purposes," and sometimes referred to as the "Inflation Control Act", was an
act of Congress
An act of Congress is a statute enacted by the United States Congress. Acts may apply only to individual entities (called Public and private bills, private laws), or to the general public (Public and private bills, public laws). For a Bill (law) ...
that amended the
Emergency Price Control Act of 1942.
Contents
The Act authorized and directed the
President
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to issue an order stabilizing prices, wages and salaries to the levels they had had as of September 15, 1942,
[ and to issue additional regulations related to the Act. The Act excluded from stabilization "insurance and pension benefits in a reasonable amount to be determined by the President".
The Act also extended the expiration date of the Emergency Price Control Act by a year, to June 30, 1944.]Franklin Roosevelt
Franklin Delano Roosevelt (January 30, 1882April 12, 1945), also known as FDR, was the 32nd president of the United States, serving from 1933 until his death in 1945. He is the longest-serving U.S. president, and the only one to have served ...
issued Executive Order
In the United States, an executive order is a directive by the president of the United States that manages operations of the federal government. The legal or constitutional basis for executive orders has multiple sources. Article Two of the ...
no. 9250, fixing wages and salaries in accordance with the Act, and establishing the Office of Economic Stabilization. On April 8, 1943, President Franklin Roosevelt issued Executive Order 9328 which was a hold the line on further increases in prices affecting the cost of living and increases in wages and salaries with the exception where there were substandard living conditions. On September 25, 1943, President Franklin Roosevelt issued Executive Order 9381 directing the National War Labor Board to stabilize salary and wages per annum paid by any United States employer.
One consequence of the wage stabilization under the Act was that employers, unable to provide higher salaries to attract or retain employees, began to offer insurance
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to protect ...
plans, including health care packages, as a fringe benefit
Employee benefits and benefits in kind (especially in British English), also called fringe benefits, perquisites, or perks, include various types of non-wage compensation provided to an employee by an employer in addition to their normal wage or ...
, thereby beginning the practice of employer-sponsored health insurance.
Economic Stabilization Extension
Stabilization Extension Act of 1944 extended the price controls and economic stabilization authorities established by the Emergency Price Control and Stabilization Acts for the duration to June 30, 1945. The S. 1764 legislation
Legislation is the process or result of enrolling, enacting, or promulgating laws by a legislature, parliament, or analogous governing body. Before an item of legislation becomes law it may be known as a bill, and may be broadly referred ...
was passed by the 78th U.S. Congressional session and enacted into law by President Franklin D. Roosevelt on June 30, 1944.
See also
* George W. Taylor
* Office of Price Administration
The Office of Price Administration (OPA) was established within the Office for Emergency Management of the United States government by Executive Order 8875 on August 28, 1941. The functions of the OPA were originally to control money ( price con ...
* Wage Stabilization Board
The Wage Stabilization Board (WSB) was an independent agency of the United States government whose function was to make wage control policy recommendations and to implement such wage controls as were approved."Executive Order 10161, September 9, ...
References
External links
{{Commons, File:Pub. L. 77-729.pdf, Stabilization Act of 1942
Executive Order no. 9250
October 3, 1942
77th United States Congress
United States federal commerce legislation