In 1946, President Truman signed the Employment Act. It declared the Federal Government's responsibility to maintain full employment and created the President's Council of Economic Advisors and Congress' Joint Economic Committee. The bill however was a disappointment compared to what could've been. The act, as originally proposed, would've required the government to make up for any shortfalls in aggregate demand through tax cuts and spending increases. It could've essentially guaranteed a 3-4% unemployment rate as was the case in most of Western Europe until the 1970s. The best part is the resulting stability would've been a self fulfilling prophecy, if businesses knew the government would step in for any loss of demand, they wouldn't cut back on new investment upon hearing about a possible recession. However, conservatives claimed this plan would've brought about inflation and socialism and so it got watered down. It is a serious tragedy this never got implemented.