The 1971 Wage-Price Freeze That Rewrote Economic Policy

In August 1971, President Nixon shocked the nation by imposing a 90-day freeze on wages, prices, and rents. This episode of The Economic History Podcast explores the origins of that decision, from a collapsing Bretton Woods system to rising unemployment and inflation. Lucas and Luna examine how controls failed to tame inflation, distorted markets with shortages, and eventually collapsed, setting the stage for the stagflation of the 1970s. They discuss the role of the newly created Cost of Living Council, the 1973 oil shock, and the lesson that price controls cannot fix underlying monetary imbalances. A relevant history as central banks today navigate similar trade-offs. #RichardNixon #WagePriceControls #NixonShock #BrettonWoods #Inflation #Stagflation #CostOfLivingCouncil #1970sEconomy #OPEC #OilShock #FederalReserve #ArthurBurns #EconomicHistory #PriceControls #Unemployment #Economics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo