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The Governance Revolution by Deborah Midanek

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Chapter 9 The Impact of The Great Inflation

We have now traced the changing composition of the universe of owners of public companies, and the pressures they face. Now we return to the post World War II period to consider the development and impact of economic policy. We address economic policy because it has a strong effect on the fates of companies overseen by directors. Corporate board members who ignore policy do so at their peril.

Most notable among the laws that emerged post–World War II was the Employment Act of 1946, which continues to have lively impact today. Among other things, the act declared it a responsibility of the federal government for the first time “to promote maximum employment, production, and purchasing power” and provided ...

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