312:
219:
scale from the demise of the French economy. However, in practice, the law ultimately targeted local shopkeepers, butchers, bakers, and farmers-the merchants who were profiting the least from the economic crisis. With the
General Maximum, Robespierre offered the people an answer regarding whom to blame for their poverty and their hunger. Furthermore, considering its association with the
57:. Peacetime income policies were resorted to in the U.S. in August 1971 as a response to inflation. The wage and price controls were effective initially but were made less restrictive in January 1973, and later removed when they seemed to be having no effect on curbing inflation. Incomes policies were successful in the
218:
By creating the
General Maximum, Robespierre shifted the attention of the French people away from government involvement in widespread shortages of money and food to a fight between consumers and merchants. The text of the General Maximum was written towards businessmen who were profiting on a large
272:
The 90-day freeze became nearly 1,000 days of measures known as Phases One, Two, Three, and Four, ending in 1973. In these phases, the controls were applied almost entirely to the biggest corporations and labor unions, which were seen as having price-setting power. However, 93% of requested price
403:
government. Employers were not party to the Accord. Unions agreed to restrict wage demands, and the government pledged action to minimise inflation and price rises. The government was also to act on the social wage. At its broadest, this concept included increased spending on education as well as
285:
The first wave of controls were successful at curbing inflation temporarily while the administration used expansionary fiscal and monetary policies. However, the long-term effects proved to be destabilizing. Left unsuppressed after the initial price controls were relaxed, the overly expansionary
190:
had limited success. With respect to its overt intention, that of ensuring the people were able to purchase food at a reasonable rate, the
Maximum was mostly a failure. Some merchants having found themselves forced into a position to sell their goods for a price below cost (e.g. cost of baking
263:
of international currency management established after World War II. The 90-day freeze was unprecedented in peacetime, but such drastic measures were thought necessary. It was quite well known at the time that this would likely lead to an immediate inflationary impulse (essentially because the
268:
of the dollar would boost the demand for exports and increase the cost of imports). The controls aimed to stop that impulse. The fact that the election of 1972 was on the horizon likely contributed to both Nixon's application of controls and his ending of the convertibility of the dollar.
475:
The current polder model is said to have begun with the
Wassenaar Accords of 1982 when unions, employers and government decided on a comprehensive plan to revitalize the economy involving shorter working times and less pay on the one hand, and more employment on the other.
69:
Incomes policies vary from "voluntary" wage and price guidelines to mandatory controls like price/wage freezes. One variant is "tax-based incomes policies" (TIPs), where a government fee is imposed on those firms that raise prices and/or wages more than the controls allow.
258:
imposed price controls on August 15, 1971. This was a move widely applauded by the public and a number of
Keynesian economists. The same day, Nixon also suspended the convertibility of the dollar into gold, which was the beginning of the end of the
277:
power, some economists saw controls as possibly working effectively (though they are usually skeptical on the issue of controls). Because controls of this sort can calm inflationary expectations, this was seen as a serious blow against
460:(Dutch: Sociaal-Economische Raad, SER). The SER serves as the central forum to discuss labour issues and has a long tradition of consensus, often defusing labour conflicts and avoiding strikes. Similar models are in use in
407:
Inflation declined during the period of the Accord, which was renegotiated several times. However, many of the key elements of the Accord were weakened over time, as unions sought a shift from centralised wage fixation to
89:
for enforcement. That happened in the United States during the early 1970s. When the price of a good is lowered artificially, it creates less supply and more demand for the product, thereby creating shortages.
286:
policies proceeded to exacerbate inflationary pressures. Meat also began disappearing from grocery store shelves and
Americans protested wage controls that didn't allow wages to keep up with inflation.
350:
in 1975. This act contained wage and price controls on parts of the economy and remained in force until 1978. In 1979 the anti-inflation board was dissolved and the Anti-Inflation Act repealed.
498:
imposed a simultaneous freeze on wages, prices and interest rates in an effort to curb inflation, despite public resistance. These measures were subsequently repealed by
Muldoon's successor
380:" in which unions would accept smaller wage increases, and business would constrain price increases, imitating Nixon's policy in America. Price controls ended with the election of
97:
as a way of fighting inflation, at least for mild inflation. Others argue that controls and mild recessions can be complementary solutions for relatively mild inflation.
684:
254:
In the early 1970s, inflation had been much higher than in previous decades, getting above 6% briefly in 1970 and persisting above 4% in 1971. U.S. President
912:
469:
243:). That agency was rather unpopular with business interests and was phased out as quickly as possible after peace had been restored. However, the
1050:
297:
prices persisted for years after 1973). During times of high inflation, controls have been called for; in 1980 during unprecedented inflation,
223:, when a citizen informed the government about a merchant who was in violation of the law, they were considered to have done their civic duty.
651:
412:. The Accord ceased to play a major role after the recession of 1989–92, and was abandoned after the Labor government was defeated in 1996.
53:
imposed price controls (by penalty of death) in an unsuccessful attempt to curb inflation, and such measures were also attempted after
1376:
1087:
866:
465:
365:
359:
73:
Some economists agree that a credible incomes policy would help prevent inflation. However, by arbitrarily interfering with
420:
Italy imitated the United States' price and wage controls in 1971, but soon gave up the policy to focus on controlling the
1021:
247:
brought a return to the same inflationary pressures, and price controls were again established, this time under the OPS (
1059:
338:
proposed the imposition of a wage and price freeze on the
Canadian economy as a response to rising inflation due to the
1042:
963:
896:
858:
788:
449:
236:
311:
289:
Since that time, the U.S. government has not imposed maximum prices on consumer items or labor (although the cap on
692:
614:
920:
240:
1402:
248:
1022:"IRIN Africa | ZIMBABWE: Price controls devastating rural economy | Zimbabwe | Food Security"
486:, hence its name (the "polders" are a region comprising the Netherlands and the northern part of Belgium).
203:. However, the General Maximum was very successful in deflecting a volatile political issue away from the
100:
The policy has the best chance of being credible and effective for the sectors of the economy dominated by
1080:
372:
in an attempt to solve the problem of inflation in the
British economy by managing wages and prices. The
1115:
437:
204:
1407:
1293:
1047:
820:
637:
393:
377:
659:
479:
The polder model is widely, but not universally, regarded as successful incomes management policy.
199:) chose to hide their expensive goods from the market, either for personal use or for sale on the
116:. Such institutions enable collective negotiation and monitoring of the wage and price agreements.
1412:
1218:
576:
457:
1346:
1073:
400:
208:
955:
949:
888:
882:
848:
780:
774:
1336:
1331:
1247:
1211:
409:
369:
1351:
1226:
373:
260:
211:, enabling them to focus on larger political issues more closely related to completing the
8:
1110:
78:
1397:
1267:
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1136:
1003:
803:
347:
132:
1307:
1192:
1171:
1164:
980:
959:
892:
862:
854:
784:
381:
212:
171:
was imposed in an attempt to decrease inflation. It consisted of limits on wages and
164:
93:
Some economists argue that incomes policies are less expensive (more efficient) than
46:
1007:
638:
The Wages of
Militancy: Incomes Policy, Hegemony and the Decline of the British Left
346:
was originally opposed to this idea, but after winning the election, introduced the
1341:
1272:
1200:
1038:
995:
335:
85:
and declines in the quality of goods on the market and requiring large government
1356:
1282:
1277:
1178:
1144:
1125:
1120:
1054:
339:
320:
220:
168:
143:
109:
50:
1371:
1361:
1287:
1262:
1236:
523:
343:
139:
58:
31:
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for breaking this law. The law was repealed 14 months after its introduction.
1391:
1315:
1241:
1205:
1150:
1096:
999:
515:
503:
255:
183:
128:
751:
Darrow, M. "Economic Terror in the City: The General Maximum in Montauban."
738:
Darrow, M. "Economic Terror in the City: The General Maximum in Montauban."
725:
Darrow, M. "Economic Terror in the City: The General Maximum in Montauban."
712:
Darrow, M. "Economic Terror in the City: The General Maximum in Montauban."
544:
1300:
445:
433:
421:
396:
during the 1980s. The Accord was an agreement between trade unions and the
316:
299:
265:
235:, price controls were used in an attempt to control wartime inflation. The
232:
200:
136:
124:
113:
74:
54:
806:
Richard Nixon speech announcing Phase Four price controls, June 13th, 1973
1231:
1130:
499:
495:
294:
279:
172:
86:
39:
571:
376:
in the 1970s sought to reduce conflict over wages and prices through a "
334:
During the 1974 federal election, Progressive Conservative Party leader
45:
Incomes policies have often been resorted to during wartime. During the
1366:
1185:
945:
878:
770:
453:
436:
in the Netherlands is characterized by tri-partite cooperation between
273:
increases were granted and seen as necessary to meet costs. With such
244:
176:
150:
in the economy greatly distorting other areas, exempt from the policy.
397:
290:
196:
105:
94:
35:
23:
519:
274:
123:
phenomenon, and the only way to deal with it is by controlling the
120:
101:
82:
303:
editorialized in favor of semi-permanent wage and price controls.
483:
461:
441:
328:
1065:
131:. They argue that price inflation is only a symptom of previous
324:
187:
192:
147:
61:
during World War II but less successful in the post-war era.
1060:
Nixon's Wage and Price Freeze – Forty Years After the Freeze
1048:
PBS Special Report on California Electricity Price Controls
27:
38:, and usually seeking to establish wages and prices below
981:"The Polder Model Reviewed: Dutch Corporatism 1965—2000"
119:
Other economists argue that inflation is essentially a
612:
186:
and food hoarding into crimes against the government,
804:
http://www.presidency.ucsb.edu/ws/index.php?pid=3868
392:
Australia implemented an incomes policy, called the
112:, with a significant sector of workers organized in
843:
841:
494:In 1982, then Prime Minister and Finance Minister
470:universal validity of collective labour agreements
1389:
838:
978:
940:
938:
765:
763:
761:
814:
812:
427:
146:the incomes policy can never work, the excess
77:, it provides an additional bar to achieving
1081:
935:
871:
779:. New York, New York: Basic Books. pp.
758:
678:
676:
34:, most commonly instituted as a response to
954:. New York, New York: Basic Books. p.
887:. New York, New York: Basic Books. p.
853:, Greenwood Publishing Group, 1991, p. 232
809:
652:"Price Controls and California Electricity"
315:Demonstration against wage controls during
1088:
1074:
847:Friedman, Leon / Levantrosser, William F.
673:
613:Yergin, Daniel; Joseph Stanislaw (1997).
518:'s government imposed a price freeze in
310:
536:
370:the government of Harold Wilson in 1965
1390:
979:Woldendorp, Jaap; Keman, Hans (2007).
819:Morris, Charles R. (7 February 2004).
818:
526:. That policy led only to shortages.
142:. They believe that without a totally
1069:
682:
649:
643:
608:
606:
604:
602:
600:
598:
596:
594:
566:
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466:Comprehensive Income Policy Agreement
366:National Board for Prices and Incomes
360:National Board for Prices and Incomes
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877:
769:
542:
16:Economy-wide wage and price controls
13:
1043:The Wolfram Demonstrations Project
591:
561:
456:. These talks are embodied in the
14:
1424:
1095:
1032:
988:Economic and Industrial Democracy
353:
237:Franklin Roosevelt Administration
226:
1014:
972:
905:
797:
745:
689:Fiat Money: Inflation in France
342:. The Liberal government under
732:
719:
706:
683:White, Andrew Dickson (1912).
631:
489:
241:Office of Price Administration
1:
529:
249:Office of Price Stabilization
615:"Nixon Tries Price Controls"
387:
7:
913:"Wage & Price Controls"
509:
482:This model is also used in
428:The Netherlands and Belgium
153:
10:
1429:
650:Irons, John (2001-06-24).
545:"Price Controls Are Back!"
357:
205:Committee of Public Safety
127:, directly or by changing
1324:
1103:
951:How We Got Here: The '70s
884:How We Got Here: The '70s
776:How We Got Here: The '70s
753:French Historical Studies
740:French Historical Studies
727:French Historical Studies
714:French Historical Studies
394:Prices and Incomes Accord
306:
182:By turning the crimes of
158:
81:, potentially leading to
64:
1377:Public policy by country
1000:10.1177/0143831X07079351
438:employers' organizations
415:
169:"The Law of the Maximum"
51:"The Law of the Maximum"
685:"The French Revolution"
577:George Mason University
458:Social Economic Council
175:. Many dissidents were
1347:Public policy doctrine
331:
209:Maximilien Robespierre
1337:Public administration
1332:Evidence-based policy
1041:by Fiona Maclachlan,
549:Making Economic Sense
502:and Finance Minister
410:enterprise bargaining
314:
110:nationalised industry
1403:Macroeconomic policy
1352:Public policy school
1062:by William N. Walker
821:"The Nixon Recovery"
640:By David Purdy, 2006
374:Callaghan government
261:Bretton Woods system
239:instituted the OPA (
917:The History Project
580:. 29 September 1793
79:economic efficiency
1053:2013-06-19 at the
825:The New York Times
619:Commanding Heights
543:Rothbard, Murray.
348:Anti-Inflation Act
332:
133:monetary inflation
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1181:
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1153:
1139:
867:978-0-313-27653-8
695:on August 8, 2008
382:Margaret Thatcher
213:French Revolution
165:French Revolution
47:French Revolution
26:are economy-wide
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1408:Household income
1342:Public budgeting
1306:
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1219:Renewable energy
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1018:
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969:
942:
933:
932:
930:
928:
919:. Archived from
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903:
902:
875:
869:
850:Richard M. Nixon
845:
836:
835:
833:
831:
816:
807:
801:
795:
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749:
743:
742:1991, pp. 503–05
736:
730:
729:1991, pp. 523–25
723:
717:
716:1991, pp. 517–19
710:
704:
703:
701:
700:
691:. Archived from
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671:
670:
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658:. Archived from
656:ArgMax Economics
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641:
635:
629:
628:
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625:
610:
589:
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568:
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336:Robert Stanfield
20:Incomes policies
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1357:Policy analysis
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1099:
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1055:Wayback Machine
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1030:
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923:on 27 June 2011
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378:social contract
368:was created by
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321:Parliament Hill
309:
229:
221:Law of Suspects
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144:planned economy
108:, particularly
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12:
11:
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1248:Pharmaceutical
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1234:
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1215:
1212:Nuclear energy
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1196:
1189:
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1175:
1168:
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1154:
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1123:
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1116:Climate change
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1107:
1105:
1101:
1100:
1093:
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1085:
1078:
1070:
1064:
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1057:
1045:
1039:Price Controls
1034:
1033:External links
1031:
1028:
1027:
1013:
994:(3): 317–347.
971:
964:
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897:
870:
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796:
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718:
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560:
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533:
531:
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524:hyperinflation
511:
508:
491:
488:
429:
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417:
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389:
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358:Main article:
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354:United Kingdom
352:
344:Pierre Trudeau
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167:in the 1790s,
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140:money creation
129:interest rates
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59:United Kingdom
32:price controls
15:
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1024:. 2007-07-24.
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1325:Other topics
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1111:Agricultural
1016:
991:
987:
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925:. Retrieved
921:the original
916:
907:
883:
873:
849:
828:. Retrieved
824:
799:
775:
755:1991, p. 511
752:
747:
739:
734:
726:
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713:
708:
697:. Retrieved
693:the original
688:
664:. Retrieved
660:the original
655:
645:
633:
622:. Retrieved
618:
582:. Retrieved
575:
552:. Retrieved
548:
538:
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333:
317:World War II
300:BusinessWeek
298:
288:
284:
271:
266:depreciation
253:
233:World War II
230:
217:
201:black market
181:
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137:central bank
125:money supply
118:
114:labor unions
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55:World War II
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1268:Immigration
1255:Vaccination
946:Frum, David
879:Frum, David
771:Frum, David
522:because of
500:David Lange
496:Rob Muldoon
490:New Zealand
295:natural gas
280:stagflation
264:subsequent
195:or growing
173:food prices
163:During the
106:oligopolies
40:free market
1392:Categories
1367:Regulation
1308:Technology
1172:Investment
1165:Industrial
699:2008-11-03
666:2008-11-06
624:2008-11-03
584:2008-11-03
554:2008-11-03
530:References
454:government
452:, and the
340:oil crisis
245:Korean War
197:vegetables
135:caused by
102:monopolies
95:recessions
1398:Inflation
1294:Stem cell
1273:Knowledge
1201:Education
514:In 2007,
464:, namely
404:welfare.
388:Australia
384:in 1979.
83:shortages
36:inflation
24:economics
1283:Military
1278:Language
1179:Monetary
1145:Economic
1126:Domestic
1121:Cultural
1051:Archived
1008:52990197
948:(2000).
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830:15 April
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520:Zimbabwe
510:Zimbabwe
440:such as
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1263:Housing
1237:Foreign
1158:Incomes
927:7 April
484:Belgium
462:Finland
442:VNO-NCW
329:Ontario
231:During
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1316:Social
1242:Health
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1151:Fiscal
1137:reform
1104:Fields
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781:298–99
325:Ottawa
307:Canada
188:France
159:France
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1301:Space
1193:Trade
1004:S2CID
984:(PDF)
416:Italy
401:Labor
398:Hawke
193:bread
148:money
1232:Food
1131:Drug
960:ISBN
929:2011
893:ISBN
863:ISBN
855:ISBN
832:2018
785:ISBN
468:and
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