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Blue Eagle

Ben H

Well-known member
150px-NewDealNRA.jpg


http://en.wikipedia.org/wiki/Blue_Eagle

This is NOT the National Rifle Association

This symbol got me a little worried. Are economy is going down, how far is the question. I thought that having rescources like pasture/cattle and wood (heat) would provide the economic stability needed if times get tough, it's things people need to survive. Then I heard about this Blue Eagle durring the depression, the government would cap the price you charged for your product. It was against the law to sell over the price they set. I could see this happening if the wrong person gets elected.
 

fff

Well-known member
Ben H said:
150px-NewDealNRA.jpg


http://en.wikipedia.org/wiki/Blue_Eagle

This is NOT the National Rifle Association

This symbol got me a little worried. Are economy is going down, how far is the question. I thought that having rescources like pasture/cattle and wood (heat) would provide the economic stability needed if times get tough, it's things people need to survive. Then I heard about this Blue Eagle durring the depression, the government would cap the price you charged for your product. It was against the law to sell over the price they set. I could see this happening if the wrong person gets elected.

I guess you weren't around with REPUBLICAN president Richard Nixon froze all wages and prices back in '71?
 

MsSage

Well-known member
You have to go back farther than Nixon to find the cause of the wage freeze.

Samuel Rosenberg, American Economic Development Since 1945: Growth, Decline and Rejuvenation

This institutional framework created by macroeconomic policies, the development of union-business management relations, and the creation of an international structure favorable to American business, began to unravel in the 1960s. The Kennedy administration's reliance on Keynesian demand management policies, often described as the triumph of the "new economics," was, in fact, supplemented by wage-price guideposts in an attempt to control the creeping inflation. Monetary policy was largely relegated to supporting fiscal policy. By the late 1960s this arrangement was unraveling as the Fed's attempts to control inflation led to credit crunches and fiscal policy required temporary tax increases. Professor Rosenberg argues that by the early 1970s these policies had created "stagflation" and brought on President' Nixon's experiment with explicit wage and price controls and the ending of convertibility between the dollar and gold. Professor Rosenberg argues that it was understood that, "Monetary and fiscal policy alone were unable to deal with the simultaneous occurrence of high rates of inflation, high rates of unemployment and balance of payments deficits."

The second part of this institutional framework, union-business management relations, was also deteriorating in the 1960-1971 period. Management had adopted "hard-line" policies by the late 1950s designed to limit union influence on business decision-making and slow down union growth. The booming 1960s reduced the ability of management to hold the line on wage and salary growth due to the growing demand for labor. However, employers increasingly used legal and illegal tactics to delay and influence union organizing efforts. These tactics met with success as union organizing declined and private sector union membership fell. In addition to delaying tactics, firms moved production to non-union areas or out of the United States. This was occurring at the same time the union bargaining was gaining larger increases in wages and salaries and benefits. Seeing their profits squeezed, Professor Rosenberg argues that employers appealed to the federal government for assistance and, on August 15, 1971, President Nixon responded by freezing wages and prices.

Unions as well as employers also had a role in the persistence of inequality and discrimination in this period. Though collective bargaining had increased the living standards of many union members, discrimination by unions and employers had left out some union members as well as those who were not union members. The liberal policies of the Kennedy and Johnson administrations attacked inequality and discrimination through new programs, but much remained to be accomplished by 1971.
 
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