Organic Act of the Department of Labor
Categories: Econ, Regulations
The Organic Act of the Department of Labor made one into two: the Department of Commerce and Labor became the Department of Commerce and, separately, the Department of Labor...in 1913.
Famously, Prez Taft was not stoked to sign the bill, but he did it anyway because he was sure that Wilson, next in line to the U.S. throne, would sign it if he didn’t. Why the hesitation from Taft? He thought that less is more, and that the goals of labor and commerce were aligned enough that it would be more efficient to keep those two things under one department’s roof.
"Why have two departments with overlap?" he basically said.
Today, the two departments are still functioning, focusing on pretty different goals. The Department of Commerce is more macroeconomic, focusing on economic growth, job growth, and sustainable economic development…all about dat money. The Department of Labor is more microeconomic, setting standards for occupational safety, wage and hour standards, and unemployment insurance...all about the workers.