Shopping on line can be easy, simple and save you lots of money. It can also take a lot of your time, frustrate you, and result in unwanted purchases. Now the same can be said for regular high street shopping, but with the vast opportunity presented by the Internet it will pay you to spend a few minutes reading this and understanding how to better optimize your Incomes Policy shopping experience:
1. Compare - without doubt the biggest advantage that the Incomes Policy offers shoppers today is the ability to compare thousands of Incomes Policy at a time. This is a great thing, but not necessarily all the time! Too much can be daunting at times so take advantage of the great comparison sites and where possible let them do the hard work for you.
2. Research - if it has been said it will be on the internet. Ignorance is no longer a justifiable reason for buying the wrong thing. Take the time to research in detail everything that you could possible want to know about
3. Testimonials - don't know anybody that has bought a Incomes Policy? Wrong! If the Incomes Policy is good the internet will let you know. Use the Internet as a friend and get testimonials before you buy.
4. Questions - Got a question about Incomes Policy then search the Forums, FAQ's, Blogs etc. Don't be afraid to ask .....
5. Reputation - Never heard of the company selling Incomes Policy? Don't worry, no reason why you should know every company in the world, but you know someone that does! Use the internet to find out what people are saying about Incomes Policy and build up a picture of their reputation for sales, returns, customer service, delivery etc.
6. Returns - still worried that even after all of the above your Incomes Policy wont be what you want? Check out the returns policy. There is so much competition now that someone, somewhere is bound to offer the terms that you are comfortable with.
7. Feedback - happy with your Incomes Policy then let people know, after all you are depending on others people input in your buying decision, so why not give a little back.
8. Security - check for the yellow padlock on the Incomes Policy site before you buy, and the s after http:/ /i.e. https:// = a secure site
9. Contact - got a question about Incomes Policy, or want to leave a comment then check out the sites contact page. Reputable companies have them and respond.
10. Payment - ready to pay for your Incomes Policy, then use your credit card or PayPal! Be aware of companies that don't accept them, there may be genuine reasons but given the huge amount of choice you have when buying online there is no reason at all not to buy via credit card or PayPal.
In economics,
incomes policies are wage and price controls, most commonly instituted as a response to
inflation.
Such policies were resorted to in the USA in the 1960s and 1970s as a response to
stagflation, but were removed within a few years when they seemed to have no effect on curbing inflation. Incomes policies were also unsuccessful in the United Kingdom in the 1970s. However, experience in some other countries, including Australia and the Netherlands has been more favorable.
Explanation
Incomes policies vary from "voluntary" wage and price guidelines to mandatory controls like price/wage freezes. One variant is "tax-based incomes policies" (TIPs), where a government fee is imposed on those firms that raise prices and/or wages more than the controls allow. This is seen as internalizing the externality cost of raising prices and/or wages, solving a market failure that encourages inflation.
Some economists agree that a policy credibility incomes policy would help prevent inflation. However, they would have other effects. By arbitrarily interfering with price signals, they provide an additional bar to achieving
economic efficiency, potentially leading to shortages and declines in the quality of goods on the market, while requiring large government bureaucracy for their enforcement.
Some economists argue that incomes policies are less expensive (more efficient) than recessions as a way of fighting inflation, at least for mild inflation. Yet others argue that controls and mild recessions can be complementary solutions for relatively mild inflation.
The policy has the best chance of being credible and effective for those sectors of the economy dominated by monopoly or
oligopoly, particularly
nationalization, with a significant sector of workers organized in labor unions. These institutions enable collective negotiation and monitoring of the wage and price agreements.
Other economists argue that inflation is essentially a
monetary phenomenon and the only way to deal with it is by controlling the money supply, either directly or by means of interest rates. They argue that price inflation is only a symptom of previous
monetary inflation caused by central bank money creation. This view holds that without a totally planned economy the incomes policy can never work, because the excess
money in the economy will greatly distort areas which the incomes policy does not cover.
Experience with incomes policies
Incomes policy in the United States
During
World War II, price controls were used in an attempt to control wartime inflation. The Roosevelt administration instituted the OPA (Office of Price Administration). That agency was rather unpopular with business interests and was phased out as quickly as possible after peace had been restored. However, the Korean War brought a return to the same inflationary pressures, and price controls were again established, this time under the OPS (Office of Price Stabilization).
In the early 1970s, inflation had been much higher than in previous decades, getting above 6% briefly in 1970 and persisting above 4% in 1971. U.S. President Richard Nixon imposed price controls on August 15, 1971. This was a move widely applauded by the public and some number of (but by no means all) economists. The 90 day freeze was unprecedented in peacetime, but such drastic measures were thought necessary. Also motivating the controls, it should be noted that on the same date that the controls were imposed, 15 August 1971, Nixon also suspended the convertibility of the dollar into gold, which was the beginning of the end of the
Bretton Woods system of international currency management established after World War II. It was quite well known at the time that this would likely lead to an immediate inflationary impulse (essentially because the subsequent depreciation of the dollar would boost the demand for exports and increase the cost of imports). The controls aimed to stop that impulse. The fact that the election of 1972 was on the horizon likely contributed to both Nixon's application of controls and his ending of the convertibility of the dollar.
The 90 day freeze became nearly 1,000 days of measures known as Phases One, Two, Three, and Four, ending in 1973. In these phases, the controls were applied almost entirely to the biggest corporations and labor unions, which were seen as having price-setting power. With such monopoly power, some economists saw controls as possibly working effectively (though they are usually skeptical on the issue of controls). Because controls of this sort can calm inflationary expectations, this was seen as a serious blow against stagflation.
The controls were abandoned in 1972 (about the same time as the Bretton Woods system was finally abandoned).
Since that time, the U.S. government has not imposed maximum prices on consumer items or labor.
Incomes policy in the United Kingdom
The
James Callaghan government in the United Kingdom in the 1970s sought to reduce conflict over wages and prices through a "social contract" in which unions would accept smaller wage increases, and business would constrain price increases. The policy was unsuccessful.
Incomes policy in Australia
Australia implemented an incomes policy, called the The Accord during the 1980s. The Accord was an agreement between trade unions and the Bob Hawke
Australian Labor Party government. Employers were not party to the Accord. Unions agreed to restrict wage demands and the government pledged action to minimise inflation and price rises. The Government was also to act on the social wage. At its broadest this concept included increased spending on education as well as welfare.
Inflation declined during the period of the Accord, which was renegotiated several times. However, many of the key elements of the Accord were weakened over time, as unions sought a shift from centralised wage fixation to enterprise bargaining. The Accord ceased to play a major role after the recession of 1989-92, and was abandoned after the Labor government was defeated in 1996.
Incomes policy in the Netherlands
The Polder model in the Netherlands is characterized by tri-partite cooperation between employers' organizations such as
VNO-NCW, labour unions such as the
Federatie Nederlandse Vakbeweging, and the government. These talks are embodied in the
Social Economic Council (Dutch: Sociaal-Economische Raad, SER). The SER serves as the central forum to discuss labour issues and has a long tradition of consensus, often defusing labour conflicts and avoiding strikes. Similar models are in use in Finland, namely
Comprehensive Income Policy Agreement and universal validity of collective labour agreements.
The current polder model is said to have begun with the Wassenaar Accords of
1982 when unions, employers and government decided on a comprehensive plan to revitalize the economy involving shorter working times and less pay on the one hand, and more employment on the other.
The Polder model is widely, but not universally regarded as successful incomes management policy .
Incomes policy in Zimbabwe
In 2007 Robert Mugabe's government imposed a price free in Zimbabwe. Coupled with high inflation this soon led to shortfalls.
See also
External links
- 4000 Years of Price Controls. Ludwig von Mises Institute
- Price controls are back
In economics,
incomes policies are wage and price controls, most commonly instituted as a response to inflation.
Such policies were resorted to in the USA in the 1960s and
1970s as a response to
stagflation, but were removed within a few years when they seemed to have no effect on curbing inflation. Incomes policies were also unsuccessful in the United Kingdom in the 1970s. However, experience in some other countries, including
Australia and the Netherlands has been more favorable.
Explanation
Incomes policies vary from "voluntary" wage and price guidelines to mandatory controls like price/wage freezes. One variant is "tax-based incomes policies" (TIPs), where a government fee is imposed on those firms that raise prices and/or wages more than the controls allow. This is seen as internalizing the
externality cost of raising prices and/or wages, solving a market failure that encourages inflation.
Some economists agree that a
policy credibility incomes policy would help prevent inflation. However, they would have other effects. By arbitrarily interfering with price signals, they provide an additional bar to achieving
economic efficiency, potentially leading to shortages and declines in the quality of goods on the market, while requiring large government
bureaucracy for their enforcement.
Some economists argue that incomes policies are less expensive (more efficient) than recessions as a way of fighting inflation, at least for mild inflation. Yet others argue that controls and mild recessions can be complementary solutions for relatively mild inflation.
The policy has the best chance of being credible and effective for those sectors of the economy dominated by
monopoly or
oligopoly, particularly
nationalization, with a significant sector of workers organized in
labor unions. These institutions enable collective negotiation and monitoring of the wage and price agreements.
Other economists argue that inflation is essentially a
monetary phenomenon and the only way to deal with it is by controlling the money supply, either directly or by means of
interest rates. They argue that price inflation is only a symptom of previous monetary inflation caused by central bank money creation. This view holds that without a totally planned economy the incomes policy can never work, because the excess money in the economy will greatly distort areas which the incomes policy does not cover.
Experience with incomes policies
Incomes policy in the United States
During
World War II, price controls were used in an attempt to control wartime inflation. The Roosevelt administration instituted the OPA (Office of Price Administration). That agency was rather unpopular with business interests and was phased out as quickly as possible after peace had been restored. However, the Korean War brought a return to the same inflationary pressures, and price controls were again established, this time under the OPS (
Office of Price Stabilization).
In the early 1970s, inflation had been much higher than in previous decades, getting above 6% briefly in 1970 and persisting above 4% in 1971. U.S. President Richard Nixon imposed price controls on August 15, 1971. This was a move widely applauded by the public and some number of (but by no means all) economists. The 90 day freeze was unprecedented in peacetime, but such drastic measures were thought necessary. Also motivating the controls, it should be noted that on the same date that the controls were imposed, 15 August 1971, Nixon also suspended the convertibility of the dollar into gold, which was the beginning of the end of the Bretton Woods system of international currency management established after World War II. It was quite well known at the time that this would likely lead to an immediate inflationary impulse (essentially because the subsequent depreciation of the dollar would boost the demand for exports and increase the cost of imports). The controls aimed to stop that impulse. The fact that the election of 1972 was on the horizon likely contributed to both Nixon's application of controls and his ending of the convertibility of the dollar.
The 90 day freeze became nearly 1,000 days of measures known as Phases One, Two, Three, and Four, ending in 1973. In these phases, the controls were applied almost entirely to the biggest corporations and labor unions, which were seen as having price-setting power. With such
monopoly power, some economists saw controls as possibly working effectively (though they are usually skeptical on the issue of controls). Because controls of this sort can calm inflationary expectations, this was seen as a serious blow against stagflation.
The controls were abandoned in 1972 (about the same time as the Bretton Woods system was finally abandoned).
Since that time, the U.S. government has not imposed maximum prices on consumer items or labor.
Incomes policy in the United Kingdom
The
James Callaghan government in the United Kingdom in the 1970s sought to reduce conflict over wages and prices through a "social contract" in which unions would accept smaller wage increases, and business would constrain price increases. The policy was unsuccessful.
Incomes policy in Australia
Australia implemented an incomes policy, called the The Accord during the 1980s. The Accord was an agreement between trade unions and the
Bob Hawke Australian Labor Party government. Employers were not party to the Accord. Unions agreed to restrict wage demands and the government pledged action to minimise inflation and price rises. The Government was also to act on the social wage. At its broadest this concept included increased spending on education as well as welfare.
Inflation declined during the period of the Accord, which was renegotiated several times. However, many of the key elements of the Accord were weakened over time, as unions sought a shift from centralised wage fixation to
enterprise bargaining. The Accord ceased to play a major role after the recession of 1989-92, and was abandoned after the Labor government was defeated in 1996.
Incomes policy in the Netherlands
The
Polder model in the Netherlands is characterized by tri-partite cooperation between employers' organizations such as
VNO-NCW,
labour unions such as the
Federatie Nederlandse Vakbeweging, and the
government. These talks are embodied in the Social Economic Council (Dutch: Sociaal-Economische Raad, SER). The SER serves as the central forum to discuss labour issues and has a long tradition of consensus, often defusing labour conflicts and avoiding strikes. Similar models are in use in Finland, namely Comprehensive Income Policy Agreement and universal validity of collective labour agreements.
The current polder model is said to have begun with the Wassenaar Accords of
1982 when unions, employers and government decided on a comprehensive plan to revitalize the economy involving shorter working times and less pay on the one hand, and more employment on the other.
The Polder model is widely, but not universally regarded as successful incomes management policy .
Incomes policy in Zimbabwe
In 2007 Robert Mugabe's government imposed a price free in Zimbabwe. Coupled with high inflation this soon led to shortfalls.
See also
External links
- 4000 Years of Price Controls. Ludwig von Mises Institute
- Price controls are back
Incomes policy and inflation - LSE Research Online
Incomes policy and inflation. Jackman, Richard and Commander, S and Pages, C (1993) Incomes policy and inflation. In: World Bank conference on unemployment, restructuring and the ...
Prices and Incomes Policy
Main Index | | TopTerm Index | | Term Index | Prev Term: Press Next Term: Privacy Prices and Incomes Policy
Incomes policy: dangerous strategy|19Jan08|Socialist Worker
Special » Explaining the toxic crisis of capitalism - questions and answers » Reports of 16 & 17 July, public sector strikes and rallies. Updates newsfeed
prices and incomes policy
Governmental strategy to curb inflation; see incomes policy.... ... Tiscali Quicklinks. Please visit our Accessibility Page for a list of the Access Keys you can use to find your ...
Incomes policy - Wikipedia, the free encyclopedia
Incomes policies in economics are wage and price controls, most commonly instituted as a response to inflation. Such policies were resorted to in the USA in the 1960s and 1970s as ...
incomes policy
Government-initiated exercise to curb inflation by restraining rises in incomes, on either a voluntary or a compulsory basis; often linked with action t...
incomes policy - Hutchinson encyclopedia article about incomes policy
An instrument which combines some of the best aspects of economic and social policy, but which is sometimes neglected, is promoting consensual, equitable approaches to income ...
Janus: Incomes Policy
Catalogue entries (3 hits) Churchill/THCR 2/6/1/154: The Papers of Baroness Thatcher LG., OM., FRS.: Papers relating to industry, sanctions on industry, August 1977-December 1978
Incomes policy, employment measures and economic performance - LSE ...
Incomes policy, employment measures and economic performance. Layard, Richard (1982) Incomes policy, employment measures and economic performance.
Amazon.co.uk: Incomes policy
The Impact of Macroeconomic Policies on Poverty and Income Distribution: Macro-micro Evaluation Techniques and Tools by F. Bourguignon, L. da Silva, M.
