OPPOSE WAGE CONTROLS

WHEREAS, inflation is a serious problem for all working people; and

WHEREAS, prices rose at a rate of 9 percent last year (the second highest increase in the last 30 years), and accelerated to a higher annual rate of 15 percent during the first quarter of this year; and

WHEREAS, inflation is reducing the real value of the current income and past savings of working people; and

WHEREAS, research has shown that wages are not the cause of this inflation; and

WHEREAS, history has shown that wage-price controls are unable to correct the underlying causes of inflation but do cause a reduction in real wages:

RESOLVED, that AFT oppose controls on wages in any form, unless they are part of a broader system of controls, including prices and profits.