guideposts system
Quick Summary
The "guideposts system" was a moderate approach to incomes policy attempted in the United States during the early 1960s. It involved the government announcing the need for restraint on wage increases and setting targets to guide unions and management. The goal was to prevent employers and unions from raising prices and wages, thereby helping to stabilize the economy by addressing conflicts between full employment and price stability.1
This system aimed to limit wage increases without direct government intervention in bargaining. However, it ultimately broke down during economic booms, as public acceptance of such restraints was limited.1
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