Parade float in a Louisville , CO , festival depicting President Nixon ’ s price-wage freeze , September 6 , 1971 .
Denver Post day-to-day administration of the freeze to the Office of Emergency Preparedness ( OEP ). He deliberately chose this relatively small organization to administer what he insisted would be only a temporary period of wage and price controls . As a lawyer in the Office of Price Administration ( OPA ) in 1942 , President Nixon had witnessed the bureaucratic entanglements that plagued that semi-permanent organization ’ s activities .
The choice was quite rational . The OEP ’ s existing mission , which it continued to execute throughout the freeze period , was coordinating the federal government ’ s response to natural disasters . Its staff of 300 were experienced in working with representatives from other agencies while dealing with an emergency . It had a national operations office , a decentralized organizational structure and a network of field offices spread across the country .
OEP Director George Lincoln took full advantage of his authority to use the resources of any federal or state agency to help administer the freeze . He identified the Internal Revenue Service ( IRS ) and the Agricultural Stabilization and Conservation Service ( ASCS ) to help handle the anticipated volume of requests for rules , procedures and information about exceptions or exemptions that would be flowing into the government during the next 90 days . The IRS had 360 offices located largely in the nation ’ s urban areas , while the ASCS had 2,019 locations scattered throughout rural America .
Opinion surveys showed a great deal of support for the wage and price controls . The public believed inflation was a serious problem and seemed pleased the President had decided to tackle it more forcefully . The administration acknowledged that many would be hurt disproportionately by the sudden imposition of the freeze but asked everyone to accept their temporary inconveniences and help break the back of inflation . Officials told many audiences the freeze would not be extended beyond its 90-day term .
The CLC had its hands full convincing everyone that the freeze was being administered fairly . Labor leaders claimed it imposed uneven sacrifices on working people . Indeed , after calling for such controls for months , on August 19 the AFL-CIO Executive Council formally announced its opposition to these measures . Businesses complained they were not able to pass on recent wholesale price increases to their retail customers . Governors , mayors and local political leaders worried about the economic health of their constituents . Many parties noted their disappointment that the freeze did not affect interest rates , dividends or profits . ( The Camp David group had acknowledged that the President did not have the authority to impose controls on interest rates or dividends . Nevertheless , CLC officials sought and received assurances from commercial bankers and corporate executives that they would observe the spirit of the temporary controls .)
The freeze did not cover every commercial transaction in the country . The price
30 FINANCIAL HISTORY | Summer 2021 | www . MoAF . org