Economic Stabilization Act of 1970

The Economic Stabilization Act of 1970 (Title II of Pub. L.Tooltip Public Law (United States) 91–379, 84 Stat. 799, enacted August 15, 1970,^[2] formerly codified at 12 U.S.C. § 1904) was a United States law that authorized the President to stabilize prices, rents, wages, salaries, interest rates, dividends and similar transfers^[3] as part of a general program of price controls within the American domestic goods and labor markets. It established standards to serve as a guide for determining levels of wages, prices, etc., which would allow for adjustments, exceptions and variations to prevent inequities, taking into account changes in productivity, cost of living and other pertinent factors.^[4]

The Pay Board and the Price Commission were created on October 22, 1971, when President Nixon appointed 22 members between the boards, as agencies to create and administer economic controls in Phase II of the Economic Stabilization Program (ESP),^[5] with Donald Rumsfeld newly acting as the executive director of the Cost of Living Council responsible for establishing the overall goals of Phases I and II of the ESP.^[6]

Under the authority of the act, as amended, on August 16, 1971 President Nixon declared goals of combating inflation, reducing unemployment and curbing domestic consumption of foreign goods by imposing a 10% surcharge tax on all dutiable imports.^[7]