ABSTRACT
"In the United States those in authority often accept high unemployment with an air of resignation, as if it stemmed from acts of nature rather than acts of man. This chapter reviews Federal response to defense-cut-related unemployment, the Federal role in conversion, 990 legislation, and possible future laws. It explores agency-by-agency review of Federal involvement. The Federal programs could be structured so that after an appropriate transitional period of five years, the companies would be on their own to compete in world markets. Federal assistance would be in the form of support for research and development, tax incentives, and low-cost capital during the investment year. The Unemployment Compensation system provides short-term income assistance to unemployed workers, using a state-operated system supported by Federal tax incentives. Federal agencies have been deeply involved in economic-adjustment issues, but the only source of leadership appears to be in the Pentagon. Proponents of Federal role point to the successes of Japanese and European industrial policies.
