Stabilization Act of 1942

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The Stabilization Act of 1942 (Pub.L. 77–729, 56 Stat. 765, enacted October 2, 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",[1] 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,[2][3][4] and to issue additional regulations related to the Act.[5] The Act excluded from stabilization "insurance and pension benefits in a reasonable amount to be determined by the President".[6]

The Act also extended the expiration date of the Emergency Price Control Act by a year, to June 30, 1944.[3][7]

As a penalty for violating the Act, the Act provided for a fine of $1000, imprisonment for up to a year, or both.[8]

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.[9]

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.[10][11]

See also[edit]

References[edit]

  1. ^ "Decisions: Administrative Law—Price Regulation—Statutory Interpretation". Columbia Law Review 44 (3): 433, 435. May 1944. JSTOR 1117414. 
  2. ^ Stabilization Act of 1942, § 1
  3. ^ a b Ciment, James; Russell, Thaddeus (2007). The Home Front Encyclopedia. Santa Barbara, Calif.: ABC-CLIO. p. 1345. ISBN 978-1-57607-849-5. OCLC 77553609. 
  4. ^ Jewell, Elizabeth (2005). U.S. Presidents Factbook. Random House. p. 1933. ISBN 978-0-375-72073-4. OCLC 61303496. 
  5. ^ Stabilization Act of 1942, § 2
  6. ^ Stabilization Act of 1942, § 10
  7. ^ Stabilization Act of 1942, § 7
  8. ^ Stabilization Act of 1942, § 11
  9. ^ Roosevelt, Franklin (October 3, 1942). "President Franklin D. Roosevelt's Executive Order Providing For The Stabilizing Of The National Economy". White House news release. Retrieved January 28, 2011. 
  10. ^ Thomasson, Melissa (February 1, 2010). "Health Insurance in the United States". EH.net. Retrieved January 28, 2011. 
  11. ^ Scialabba, Jeff (September 2, 2009). "Government health care in America – part 1". Ayn Rand Center for Individual Rights. Retrieved January 28, 2011. 

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