You just proved my point. More law enforcement. If people don't want to work for you, then pay them more and improve conditions in the workplace. Supply and demand right? If people don't want to work for you, pay them more. As far as inflation, that's mostly due to corporate greed, taking advantage of the covid crisis. The government can eliminate inflation with price controls.
World War II Price Controls (1942-1946): During World War II, the U.S. government implemented widespread price controls in an attempt to combat inflation and stabilize the economy. The Office of Price Administration (OPA) was established in 1941 and was responsible for controlling the prices of many goods and services in order to ensure that they remained affordable for consumers during the war. The OPA controlled prices of essential goods such as food, fuel, and housing. These controls were gradually lifted after the war.- Korean War Price Controls (1950-1953): In a response to inflationary pressures resulting from the Korean War, President Harry Truman enacted wage and price controls in 1950. The Economic Stabilization Agency was established to oversee these controls. The focus of these controls was to prevent prices from spiraling out of control due to the costs of the war and keep the economy stable.
- Nixon's Price and Wage Controls (1971-1974): In the early 1970s, the U.S. was experiencing stagflation, a combination of stagnant economic growth and high inflation. In 1971, President Richard Nixon announced a 90-day freeze on wages and prices, which was later extended and modified to become the more extensive Phase II and Phase III price controls. This period, known as the "Nixon Shocks", also involved the U.S. leaving the gold standard. The price controls had mixed results. Initially, they did bring down inflation, but over the longer term, the controls led to shortages and economic distortions. Eventually, they were phased out.
- Carter's Voluntary Wage and Price Controls (1978): In response to high inflation rates in the late 1970s, President Jimmy Carter encouraged businesses and labor unions to voluntarily limit wage and price increases. Although these controls were not mandatory, they represented an attempt by the federal government to curb inflation through influencing market behavior.
The Vietnam War required significant government spending on military operations, equipment, and personnel. This spending was not matched by a proportionate increase in tax revenues or reductions in other types of government spending, leading to large budget deficits. This increase in government spending without corresponding increases in revenues put upward pressure on prices, contributing to inflation.
The oil crisis in the 1970s was one of the major contributors to the inflation experienced in the United States during that decade. There were two separate but related oil crises in the 1970s:
- 1973 Oil Crisis: The first oil crisis began in October 1973 when the Organization of the Petroleum Exporting Countries (OPEC) proclaimed an oil embargo against countries perceived as supporting Israel during the Yom Kippur War, which included the United States. This caused oil prices to quadruple by early 1974. The price of crude oil went from around $3 per barrel to nearly $12 per barrel.
- 1979 Oil Crisis: The second oil crisis occurred in 1979 and was precipitated by the Iranian Revolution. The revolution led to a drop in oil production in Iran, causing global oil supplies to tighten. As a result, prices doubled, with crude oil reaching more than $39 per barrel in 1980.
The combination of these factors during the oil crises contributed to a period of high inflation and economic turmoil in the United States during the 1970s. The Federal Reserve, led by Chairman Paul Volcker in the late 1970s and early 1980s, eventually implemented a tight monetary policy to combat the high inflation, which contributed to a recession in the early 1980s but ultimately helped to bring inflation under control. Without government involvement, our modern economy collapses.
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