Price and Wage Controls; A Record of Three Wars [from the dust jacket]

[12], 211, [1] pages. Index. DJ has some wear, soiling, and some tears and chips. Inscribed by the author on the fep. The inscription reads To Bill Story-who's always fighting "Controls," Charles H. Lipsett. Charles H. Lipsett served on the War Industries Board during World War I as a consultant on steel, metals and raw materials essential for armament. He was also an advisor to the War and Navy Departments on disposition of war surplus after World War I. He served as an advisor to government price and production agencies and to surplus property administration during and after World War II. He was an advisor to the Senate Armed Services Committee during the Korean War. Mr. Lipsett, who died in 1978 at the age of 95, was head of the Atlas Publishing Company of New York.' Until his retirement in 1961, he had been publishing trade journals in various fields for more than half a century. It was the author's intent in this work to present clear and factual information to held the reader judge the merits of President Nixon's and Congressional efforts to control the American Economy. He used his experiences in three wars to inform his analysis and argument. This book addressed the economic crisis that led, after its publication, to President Richard Nixon's 1971 implementation of a series of unprecedented, mandatory federal wage and price controls in a direct attempt to curb inflation, which had reached over 5%. As part of his "New Economic Policy", this initiative marked the first time the U.S. government instituted such controls during peacetime. Although initially popular and effective at lowering inflation, the controls ultimately failed to manage "stagflation," leading to shortages and a surge in inflation once they were removed. Announced on August 15, 1971, there was a 90-day freeze that immediately halted price and wage increases to curb inflationary expectations. The administration then established a "Pay Board" and "Price Commission" to oversee wage and price adjustments, which lasted for nearly three years. While most controls were lifted, price restrictions on oil and natural gas were maintained for several years, leading to widespread shortages and long gas lines. The U.S. economy faced a combination of rising unemployment and high inflation, which conventional economic strategies of the time failed to fix. Despite previously promising not to implement such controls, Nixon was advised that a freeze would show "decisive" action and was pursued to help secure his reelection in 1972. The controls were part of a broader package that included suspending the dollar's convertibility into gold (ending the Bretton Woods system) and imposing a 10% surcharge on imports. Inflation dropped to an annual rate of 4% during the initial freeze, but skyrocketed again to over 12% by 1974 after the controls were removed. The controls caused significant shortages of goods because producers found it unprofitable to produce at artificially low prices. The policies are widely regarded by economists as a failure that distorted market signals and failed to address the root causes of inflation, such as excessive demand or supply constraints. The apparatus for the wage and price controls was completely abolished in April 1974, shortly before Nixon resigned.…