Wage and Price Controls

In the seventies, a cap was put on interest rates that people with checking or savings accounts could earn. The idea was that by capping interest rates, they wouldn't have as much motivation to do risky speculation of the kind that helped lead to the stock market panic in 19 29. But from there on out, and then dramatically over the course of the seventies,. as the federal reserve rate exceeds the cap by more and more and more, any one who's keeping there is basically a chump. They are making below market rates for for what they're saving. And at the same time, because they're pouring money out, banks can't make as many loans because they're limited

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