Stabilization Act of 1942
Encyclopedia
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
that amended the Emergency Price Control Act of 1942. The Act authorized and directed the President 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.
As a penalty for violating the Act, the Act provided for a fine of $1000, imprisonment for up to a year, or both.
On October 3, 1942, the day after the statute's enactment, President Franklin Roosevelt issued Executive Order
no. 9250, fixing wages and salaries in accordance with the Act, and establishing the Office of Economic Stabilization
.
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
plans, including health care packages
, as a fringe benefit, thereby beginning the practice of employer-sponsored health insurance.
Act of Congress
An Act of Congress is a statute enacted by government with a legislature named "Congress," such as the United States Congress or the Congress of the Philippines....
that amended the Emergency Price Control Act of 1942. The Act authorized and directed the President 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.
As a penalty for violating the Act, the Act provided for a fine of $1000, imprisonment for up to a year, or both.
On October 3, 1942, the day after the statute's enactment, President Franklin Roosevelt issued Executive Order
Executive order
An executive order in the United States is an order issued by the President, the head of the executive branch of the federal government. In other countries, similar edicts may be known as decrees, or orders in council. Executive orders may also be issued at the state level by a state's governor or...
no. 9250, fixing wages and salaries in accordance with the Act, and establishing the Office of Economic Stabilization
Office of Economic Stabilization
The Office of Economic Stabilization was established within the United States Office for Emergency Management on October 3, 1942, pursuant to the Stabilization Act of 1942, as a means to control inflation during World War II through regulations on price, wage, and salary increases.-Directors:*...
.
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
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
plans, including health care packages
Health insurance
Health insurance is insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health care expenses among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is...
, as a fringe benefit, thereby beginning the practice of employer-sponsored health insurance.
External links
- Executive Order no. 9250, October 3, 1942