Political Effects of Inflation
Carter's New Plan for Voluntary Controls
The rising cost of living is the problem that seems to concern Americans most — whether they are consumers, manufacturers or federal officials who decide how the economy is run. Public opinion polls this year have indicated repeatedly that a majority of Americans believe inflation to be the No. 1 national problem.1 President Carter announced in April that curbing inflation was his top domestic priority, and in a nationally televised address Oct. 24 revealed his long-awaited program to fight inflation based on voluntary wage-price guidelines, or “standards.”
Carter set a “basic target for economy-wide price increases” at 5.75 percent annually. The president asked businesses to hold price increases to at least one-half of one percentage point below ...