SUMMARY OF THE BILL Findings and Purposes S. 1795 would amend the Employment Act of 1946 by adding at its close a new title: "Title II--Balanced Growth and Economic Planning." The bill begins with a series of findings and purposes. At the outset, the bill [section 202(a)] finds that America is gripped by the worst economic decline since the Great Depression and charges that “erratic short-term economic policies" have exacerbated the difficulties. The bill states, first, that the combination of recession and inflation has "revealed basic structural deficiencies" [section 202(a)], and, second, that "the failure to develop a long term national economic policy has also created fundamental imbalances in the economy"[section 202(b)]. As remedies, the bill proposes, first, a more efficient and reliable means of acquiring economic information. "Without such information, it is not possible adequately to analyze the economy, to anticipate and identify emerging problems, or to advise the President and the Congress about timely and effective action” [section 202(c)]. Second, the bill proposes national economic planning. Planning would entail an analysis of the effects of federal activities on the economy [section 202(d)] and also the "identification of available and potential” labor, capita! and natural resources. The bill proposes the establishment of a new agency to compile data and develop an overall economic plan. In addition to improving the “ends” of economic policy making, such an agency could improve the "means" by providing “open and democratic planning for the future" [section 202(f)]. The agency would also suggest policies designed to effectuate the goals ultimately selected [section 203(1)], and to review periodically the success of these policies. At all times, the participation of the public, of private interest groups, and of local and state governments would be encouraged and facilitated [section 203(4)). Congress would review the overall plan [section 203(5)] and the executive branch would implement and assess it [section 203(6)]. New Agencies S. 1795 would create a number of new agencies to formulate, implement, and review the balanced economic growth plan. First of all, it would create a three member Economic Planning Board (which the bill refers to as the “Board”) in the Executive Office of the President. “Composed of persons of diverse backgrounds and experience” [section 204(a)], the board is to be appointed by the President with the Senate's advice and consent. Under the direction of its chairman (designated by the President), the board would formulate the nationwide plan [section 204(b)(1)], hold hearings to assure input by government and by private citizens during the plan's preparation [section 204(b)(2)], “evaluate and measure the achievement" of the plan [section 204(b)(3)], analyze federal programs and activities to evaluate their consistency with the plan [section_204(b)(4)], coordinate other agencies' long-range plans to guarantee their compatibility with the plan [section 204(b)(5)] and finally carry out other planning functions as the President might direct [section 204(b)(6)]. Within the board, a Division of Economic Information is to be established and would be “authorized to secure information, data, estimates and statistics directly from various departments, agencies, and establishments of the executive branch of Government" [section 205(a)]. Other agencies would be required to submit such information as may be requested by the division, unless disclosure would be illegal [section 205(a)]. Through the Division of Economic Information, the board would also be authorized to “utilize" the "services, facilities, and personnel" of any agency upon agreement with the agency head, and this could be done “with or without reimbursement." The bill specifies neither the purposes nor the mechanics of this "utilization." The second major function of the Division of Economic Information would be to disseminate the information acquired from the other agencies to all government and private parties, thus providing data for planning on every level [section 205(b)). The section dealing with disseminating the statistics mentions “economic data," while the section concerned with gathering the information makes no such limitation. It simply refers to "information, data, estimates and statistics." Perhaps the difference between the two sections was intended to authorize the Division to acquire noneconomic data from federal agencies. In any case, the different wording is confusing. The furnishing of any information, data, estimates, or statistics under this title by any person acting independently or pursuant to a requirement established under this title shall not be a violation of or evidence of a violation of any of the antitrust laws of the United States [section 205(c)(1)]. This section seeks to immunize cooperating businesses from prosecution under the so-called "trade-association" cases decided by the Supreme Court under the Sherman Act. Those cases, for example, United States v. Container Corporation of America, 393 U.S. 333 (1968), have limited the ability of competing firms to exchange information on sales prices, et cetera, on the grounds that such information facilitates price fixing and other forms of cartelization. In contrast, the final section dealing with the Division of Economic Information [section 205(c)(2)] provides: Disclosure of any information, data, estimates, or statistics in violation of any rule or regulation promulgated by the Board or the disclosure of any trade secret or proprietary information or any other information furnished to the Federal Government on a confidential basis by any person in the exercise of functions under this title shall be a violation of section 1905 of title 18, United States Code. Within the board, a Council on Economic Planning would be established. Under the direction of the board chairman, the council would consist of the cabinet members, the Federal Reserve Board chairman, chairman of the Council of Economic Advisors, director of the Office of Management and Budget, the administrator of the Federal Energy Administration, and the chairman of the Advisory Committee on Economic Planning. This council would review and revise the board's plan, submit it to the President, and regularly analyze the progress of the plan's implementation [section 206]. An advisory Commission on Economic Planning would furnish advice and assistance to the board [section 207]. Comprised of representatives of business, labor. and the public (four members appointed by the President. four by the Speaker of the House, and four by the president of the Senate), the advisory committee would be required to meet at least twice a year to convey to the board the view of “broad segments of the public" concerning the plan. It would be authorized to establish regional and industrial subcommittees to help it monitor public reaction to the plan. Within the Congressional Budget Office, a Division of Balanced Growth and Economic Planning would perform long-term economic analysis, gather data, and offer advice to the Joint Economic Committee on national resources, economic goals, and policies [section 213]. It would also provide information to any other House or Senate committee requesting it. Formulation of the Plan S. 1795 outlines specific requirements for the plan. It must "establish economic objectives" for a period set by the board (most literature discusses a six-year plan).3 In doing so, the plan must "pay particular attention" to the attainment of the following goals: ...full employment, price stability, balanced economic growth, development, stable international relations, and meeting essential To achieve these goals, the plan must identify the resources required and forecast the level of production and investment by major industrial, agricultural, and other sectors, the levels of State, local and Federal Government economic activity, and relevant international economic activity, for the duration of the plan. [Section 208(a)(2)] Finally, the plan would recommend legislative and administrative actions to implement its objectives, including recommendations concerning ...money supply growth, the Federal budget, credit needs, inter- The plan, therefore, would entail more than forecasting or predicting the direction and speed of the American economy. Not only would it encompass judg ments as to how the economy will behave, but it also would include decisions as to how the economy's resources ought to be allocated. The establishment of “economic objectives" requires centralized governmental decisions as to which goods ought to be produced and how. In particular. judgments as to what are the "essential national needs" in transportation, agriculture, and housing must be made, judgments which in turn will affect the production of other goods that compete for the same resources. The plan would first be drafted by the board with the help of the advisory committee and public suggestions gathered at hearings. The board would pass its plan to the council for review and revision; “upon approval" it would be transmitted to the President. The President would be required to submit plans to Congress every two years [section 208(a)]. Not later than 1 April 1977 the President would submit an initial plan to Congress. Along with the plan, the President would attach a "report," including the data needed to understand the plan [section 208(b)), examination of trends and objectives beyond the plan's term, and an analysis of previous plans' successes or failures [section 208(b)(3)]. The plan and report would be referred to the Joint Economic Committee [section 210(a)]. An attempt is made to ensure widespread participation in the deliberations of Congress. First, the President would be required to transmit the plan to the governor of every state and to other "appropriate" local and state officials [section 209(b)). Each governor could (within sixty days) send the Joint Economic Committee a report of his findings and recommendations, including the results of public hearings [section 209(b)]. Second, every House and Senate committee would be directed to report within sixty days to the Joint Economic Committee its views and recommendations respecting the plan as it relates to each committee's area of concern [section 210(a)]. Third, the Joint Committee would receive data and advice from the Division of Balanced Growth and Economic Planning of the Congressional Budget Office [section 213(a)]. Finally, the Joint Economic Committee would hold hearings for all interested people to express their opinions. Not later than 105 days after Congress received the plan, the Joint Economic Committee would report to the House and Senate a concurrent resolution for approval or disapproval of the plan. The Committee would be authorized to recommend partial or full acceptance or rejection and could also suggest alternatives, modifications, or additions [section 210(c)]. The resolution would be accompanied by a report which would include findings and recommendations respecting each portion of the plan. The bill provides that not later than twenty days after the Joint Economic Committee reports, Congress must act on the concurrent resolution, because the President and board cannot implement any part of the plan either disapproved or not approved by Congress [section 211(b)]. This form of congressional limit on presidential discretion is called the "legislative veto." If the whole plan is approved, it becomes effective and the President may enforce it. If the whole plan is rejected by Congress, the President must submit a revised plan within thirty days [section 211(a)], and within thirty days after that Congress must "approve or disapprove, in whole or in part, the revised plan” [section 211(a)]. The bill holds the President responsible for implementing the plan. He must ensure that all executive agencies and departments cooperate, and also “encourage" state and local governments and the private sector to work for the plan's goals [section 212(a)]. The board would be authorized to review (upon request) state, regional or local plans and to recommend changes to provide consistency with the national plan [section 209(c)]. More importantly, the board would monitor all federal agencies and departments regarding their participation in the plan. If any agency's budget request, proposed legislation, or projected action "may have a significant effect on the achievement of the goals and objectives” in the plan, the board could require that the agency head submit a report [section 212(b)]. The report would be required to assess “...the consistency of the pro posed budget, legislation, rule. regulation, or other action, with the plan, together |