Wage Control

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Wage Control

A government regulation limiting the percentage (or, rarely, the dollar amount) by which a wage or salary can increase in a given year. Wage control generally is practiced only during national emergencies, or when inflation is particularly high. Wage controls were attempted during the 1970s in the United States and the United Kingdom, but were unsuccessful in curbing inflation.
References in periodicals archive ?
He got inflation on a downward cycle but his wage controls and spending cuts alienated many on the Left.
READING chairman John Madejski has claimed wage controls will be difficult to enforce in the Premier League ahead of a key vote on spending restraints in England's top flight today.
The results of the minimum wage controls are documented for each individual industrial workers to audit-proof on the site.
MANCHESTER United's chief executive David Gill claims that Premier League clubs will have to accept financial fair play if they want to impose wage controls.
Even the earth-shaking "reform" has been built on the completely artificial connection between workplace and health insurance inspired by World War II wage controls.
With wage controls in place, employers began to compete for employees through health insurance packages.
It would even apply to those exempt from these new wage controls.
Labour historians have so stressed the struggle of steelworkers against wage controls, the reconstitution of the National War Labour Board during the winter of 1943, and the latter's hearings into labour relations and wage conditions through the spring, that few have any idea that the same struggle and others for union recognition and the closed shop continued.
As Vair notes, it is not intended to be a 'full history of the labour movement's fight against the federal government's wage controls program' (p.
A persuasive debater who convinced opponents among professional economists and policymakers that the Great Depression of the 1930s was not a failure of the market system that required government to plan the economy but a failure of the Federal Reserve to prevent a drastic contraction of the money supply; and that inflation in the 1960s and 1970s was due not to the exercise of monopoly power by corporations and unions that only price and wage controls could reduce, but a monetary phenomenon produced by excessive growth of spending that expansionary monetary policy created; the remedy to limit spending growth involved a temporary decline in economic growth and employment, a cost smaller than the cost of permitting inflation to continue.
Classical liberals oppose price and wage controls, for example, but the libertarian economist's task "is not that of demonstrating specifically to the citizenry that coercively imposed price and wage controls cause damages that exceed any possible benefits," Buchanan writes.