Feds prevent employers from raising wages? Say what!

[88GT]

Reading through the day's liberal bashing and this

In the 1940’s, the federal government prevented employers from raising wages, so businesses had to find other ways – such as providing benefits like health insurance – to attract quality employees.

was part of one of the articles.

The part in red is what I'm interested in. Under what pretense? What law? Anybody familiar with this. My google-fu is weak, admittedly, but without more to go on, all I got was a bunch of modern minimum wage hits. Nothing that mentioned a restriction on raising wages.

 

[rmabrey]

I have no idea how they could do it legally but it wouldnt surprise me if they did

 

[jblomenberg16]

It was probably not unlike the existing Federal Minimum Wage laws, but sort of in reverse. If I had to guess, since it was in the 40's, it could have been as a result of either the Depression, or part of a special War-Time bill.

 

[88GT]

It was probably not unlike the existing Federal Minimum Wage laws, but sort of in reverse. If I had to guess, since it was in the 40's, it could have been as a result of either the Depression, or part of a special War-Time bill.

I assumed as much too. But the federal minimum wage law took effect in 1938. Seems contradictory on some level.

"You have to set it no lower than here, but you can't go above there."

 

[Jack Ryan]

Reading through the day's liberal bashing and this



was part of one of the articles.

The part in red is what I'm interested in. Under what pretense? What law? Anybody familiar with this. My google-fu is weak, admittedly, but without more to go on, all I got was a bunch of modern minimum wage hits. Nothing that mentioned a restriction on raising wages.

Price Controls

Wage and price control measures, as well as regulating the hiring and firing of workers, was also initiated by the government. The National War Labor Board was established by an executive order of President Roosevelt on January 12, 1942. The board was responsible for determining the correct procedures for settling disputes that could possibly affect any war production. It was also authorized to approve wage increases and quickly adopted the Little Steel formula for wartime changes based on the rising cost of living.

http://www.ibiblio.org/pha/policy/1942/421003a.html

By virtue of the authority vested in me by the Constitution and the statutes, and particularly by the Act of October 2, 1942, entitled "An Act to Amend the Emergency Price Control Act of 1942, to Aid in Preventing Inflation, and for Other Purposes," as President of the United States and Commander in Chief of the Army and Navy, and in order to control so far as possible the inflationary tendencies and the vast dislocations attendant thereon which threaten our military effort and our domestic economic structure, and for the more effective prosecution of the war, it is hereby ordered as follows:

 

[ATOMonkey]

Jack Ryan for the win!!

It was part of the NRA, enacted under the "commerce clause."

It was an unfair business practice to offer higher wages to unfairly poach good workers from other firms. I also see that it was done as a way to reign in inflation, which is a new twist, but still fits FDRs overall agenda of total control.

Just like it was unfair business practice to charge a lower price to attract more customers.

Good ole FDR. What a great American Hero!!!

 

[dross]

They implemented a bunch of illegal and stupid policies that were supposed to help the economy - like destroying food, plant and animal - that really kept the Depression going. There's been a lot written about this by economists who don't have a Marxist agenda.

When the Supreme Court ruled that many of Roosevelt's actions were unconstitutional, he came up with a plan to add more justices, thereby packing the court.

Roosevelt was the worst President of this century, maybe in our history, though BHO is trying hard to steal that title.

 

[ATOMonkey]

New Deal or Raw Deal?

Burton Folsom Jr.

Great read, well researched, and an excellent addition to any personal library.

 

[Pocketman]

Interesting what presidents get by with under the pretense of war and/or economics.

 

[88GT]

Price Controls



http://www.ibiblio.org/pha/policy/1942/421003a.html

Thank you. I can see my list of "to read" topics is going to grow a bit this afternoon. Very much appreciated.

 

[ATOMonkey]

A guy just stopped by my desk with the new kindle 3, and it has now migrated to the top of my want list.

 

[88GT]

A guy just stopped by my desk with the new kindle 3, and it has now migrated to the top of my want list.

I refuse to get one or any variation thereof. My productivity is low enough as it is.

 

[ATOMonkey]

You're just not spinning it right. You're not lowering productivity, you're educating yourself, and don't all business love it when employees continue their education??

 

[88GT]

Could work. Yeah, yeah it could work. Oh, wait. I'm self-employed. Along with being a SAHM for two small boys. I'm doing good to get the bare minimum done now. Heaven help my family if I had a source like that to feed my addiction to learning.

 

[Eddie]

Interesting what presidents get by with under the pretense of war and/or economics.

Which is why it is always handy to have a war going on or some enemy at the gates.

 

[Vasili]

Price Controls



http://www.ibiblio.org/pha/policy/1942/421003a.html

You beat me to it.

True story.

but we've had worse. and will have worse. you think obama's bad now. just wait if he gets a second term. we'll be writing like that one soviet guy, but the sequel.

 

[dross]

Which is why it is always handy to have a war going on or some enemy at the gates.

Usually, there IS an actual enemy at the gates.

With a little more ruthlessness in our response to that, we'd save money AND preserve our rights.

 

[rambone]

The Fascists won WWII.

 

[Phil502]

I guess Rosie the Riveter got a raw deal.

 

[indykid]

And how soon we forget that good old Tricky Dicky Nixon also had a wage/price freeze in the early 1970s. I had a summer job back then and remember the owner laughing that he wanted to give out raises, but the president banned them.