Search results
Results From The WOW.Com Content Network
The Nixon shock was the effect of a series of economic measures, including wage and price freezes, surcharges on imports, and the unilateral cancellation of the direct international convertibility of the United States dollar to gold, taken by United States president Richard Nixon on 15 August 1971 in response to increasing inflation.
The Economic Stabilization Act of 1970 (Title II of Pub. L. 91–379, 84 Stat. 799, enacted August 15, 1970, [2] formerly codified at 12 U.S.C. § 1904) was a United States law that authorized the President to stabilize prices, rents, wages, salaries, interest rates, dividends and similar transfers [3] as part of a general program of price controls within the American domestic goods and labor ...
In the early 1970s, inflation had been much higher than in previous decades, getting above 6% briefly in 1970 and persisting above 4% in 1971. U.S. President Richard Nixon imposed price controls on August 15, 1971. [3] This was a move widely applauded by the public [3] and a number of Keynesian economists. [11]
With inflation unresolved by August 1971, and an election year looming, Nixon convened a summit of his economic advisers at Camp David. He then announced temporary wage and price controls, allowed the dollar to float against other currencies, and ended the convertibility of the dollar into gold. [62]
U.S. President Richard Nixon's Secretary of the Treasury, George Shultz, enacting Nixon's "New Economic Policy", lifted price controls that had begun in 1971 (part of the "Nixon Shock"). This lifting of price controls resulted in a rapid increase in prices. Price freezes were re-established five months later. [32]
Carter also flatly rebuffed calls for wage and price controls as inconsistent with "our free economic system." Nixon's 1971 wage and price freeze was an economic folly but a political success ...
The Senate votes 53 to 29 in favor of President Nixon having the authority to impose a 15% surcharge on imports into the US. [9] Secretary of the Treasury Connally lauds the wage-price increase as successful and foresees post-freeze controls cutting inflation in half during the following year. [10]
The Nixon pardon of Sept. 8, 1974, caused a political and legal earthquake that still reverberates in the age of Trump. How Richard Nixon's pardon 50 years ago provides fuel for Donald Trump's ...