Re:Economic Inequality
by WalterBright on Saturday January 02, 2016 @01:22PM
(#10827142)
The Nixon wage-price controls were a disaster. They also precipitated the oil crisis, which persisted until Reagan finally cancelled the oil price controls.
Re:Economic Inequality
by minimuffins on Saturday January 02, 2016 @02:30PM
(#10827501)
I'm not aware of the relationship between Nixon era wage policies and the oil crisis. Do you have some info on that?
Re:Economic Inequality
by WalterBright on Saturday January 02, 2016 @03:33PM
(#10827776)
Nixon enacted price controls on oil in 1971. This meant that US prices for oil could not rise, and the oil from non-Arab sources got shipped to other countries who outbid the US. Price controls prevented finding new sources of oil.
There's more, a thorough treatment is in George Reisman's book "Capitalism" pg. 188.
Re:Economic Inequality
by WalterBright on Saturday January 02, 2016 @06:21PM
(#10828523)
One of the first things Reagan did when inaugurated was, by Executive Order, rescind the oil price controls. The gas lines vanished overnight and never returned in the 35 years since, despite all kinds of gyrations in the oil business.
It's rare that we have such a clear example of the deleterious effects of price controls.
Re:Economic Inequality
by Apocryphon on Saturday January 02, 2016 @04:59PM
(#10828183)
Well, at least in the age of fracking and increased investment into renewables, as well as whatever the Saudis are up to, there's no threat of a new oil crisis happening anytime soon.
Re:Economic Inequality
by vezzy-fnord on Saturday January 02, 2016 @01:29PM
(#10827176)
I'm not advocating either of these policies in the slightest. I'm pointing out their increasing popularity in light of a heterodox renaissance post-2008.
Re:Economic Inequality
by nickbauman on Saturday January 02, 2016 @03:10PM
(#10827671)
The oil crisis was a result of the collapse of the Breton Woods System. Wage-price controls were merely a prop to stem the collapse.
The most extreme proposals I've seen in America are a federal job guarantee and a permanent incomes policy similar to the Nixon wage and price controls of the early 70s. Post-Keynesians and MMT proponents are very enthusiastic about them, and they reject the idea of the basic income FWIW.