INFLATION: New Deal Paradox

Franklin Roosevelt's anti-inflation program produced a neat socio-political paradox last week. It turned out that the New Deal had taken control over all wages and salaries in the land, had set a $25,000 ceiling on earned income—but had let the nation's coupon clippers go scot free. It was enough to make a New Dealer weep.

In the new Price Control Act, Economic Czar James F. Byrnes found enough power to freeze salaries: henceforth employers will have to ask WLB or the Treasury for permission to give raises—and will have to prove that the increases will not affect the prices of their...

Want the full story?

Subscribe Now


Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!