A Brief Note On Wage And Price Control

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Wage and Price Control

About Wage and Price Control
A Brief History Wage and price controls were enforced in the United States during World War I, World War II, the Korean War, and the Vietnam War. In 1942 the United States government began wage and price controls in order to help win World War II and maintain the general quality of life. The Office of Price Administration (OPA) was established in 1941 and their mission was to avoid profiteering and inflation as goods became in short supply in the United States due to the war. The Emergency Price Control Act of 1942 gave the OPA the ability to regulate prices in the marketplace, and brought 60 percent of all civilian food items under a form of control which froze prices at their store-by-store March 1942 levels. (Wage-Price Control, 2008)
President Roosevelt instituted the National War Labor Board to regulate hiring and firing of worker in 1942. It was the responsibility of the board to determine the correct procedures for settling disputes that could possibly affect any war production. The board had authority to approve wage increases and quickly adopted the Little Steel formula for wartime changes based on the rising cost of living. (Price Control, n.d.) The federal government for the first time recognized an ongoing responsibility for formulating budgets that would help maintain high levels of employment with the introduction of The Employment Act of 1946. Controls during the world wars and the Korean War were part

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