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Paperback
First published January 1, 1973
In the second half of 1971 President Richard M. Nixon took two steps which represented back-handed admissions that Pax Americana on the international scene and the synthetic prosperity at home might be in serious trouble. ...
The New Economic Policy, proclaimed at approximately the same time as the announcements regarding China, reflected an international trade and money crisis, and probably forecast the end of the international Pax Americana. ...
Against this background President Nixon elaborated a much tighter control of business and labor than Washington had exercised since the Second World War. It was not, as many believed, a carbon copy of what happened during World War II. It began, first of all, with a freeze of all wages and almost all prices. For ninety days all raises were prohibited, even those provided for in previously negotiated union contracts, the first time any practice of this sort has ever occurred. In effect, collective bargaining agreements were abrogated. And though the period of the freeze was short, it was a major extension of presidential power. Future Presidents doubtless will use it as a precedent for executive reversal of labor-management relations on a broader front.