Political insanity in the face increasing prices isn’t a new phenomenon to the current price rise. In the days when inflation was at about 6.5 per cent in 1970s’ early years, the president Nixon implemented a 90-day freeze on prices and wages. He later required the approval of the government for any price hikes planned after the price freeze had been lifted. The imposition of price and wage controls was among the worst solutions to the rising inflation problems of the 1970s.
According to Milton Friedman wrote in Newsweek at the time, “freezing individual prices and wages in order to slow inflation is similar to freezing the rudder on a boat and making it inoperable to steer to correct a tendency that causes the vessel to drift 1 degree off the course.” In the wake of inflation, which was slowly destroying families’ savings and incomes throughout the the 1970s, it was clear that Nixon’s price control plan was an absolute fail.
The Nixon inflation issue was inherited by Nixon. President Ford employed the WIN (whip inflation currently) buttons to exhort Americans to increase “their belts” and to spend less money than they did before” to “reduce demand” and push inflation to a lower level. The record of the past reveals what was evident at the time: the abstinence and buttons do not stop inflation.
Unfortunately, many policymakers and politicians advocates have responded to the inflationary swell in the same way. Instead of political pressure or even outright price control, they have been using a sloppy rhetoric and the use of political blame games.
Bob is a Digital Entrepreneur and keen follower of the Crypto and Blockchain world. He enjoys exploring the latest technology and news related to Fintech world. He is a go-to person with a positive attitude towards life.