Wage Stabilization Board facts for kids
The Wage Stabilization Board (WSB) was a special group set up by the U.S. government. Its main job was to help control how much people were paid. This was done to keep the economy stable, especially during times of war or big changes. There were actually two different groups with the same name, working at different times.
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What Was the Wage Stabilization Board?
The Wage Stabilization Board, often called the WSB, was created to manage wages. This means they made rules about how much money workers could earn. The goal was to stop prices from rising too quickly, which is called inflation. If wages go up too fast, companies might raise prices, making everything more expensive. The WSB would suggest these rules and then help put them into action.
The First Wage Board
The first group with a similar name was called the National Wage Stabilization Board. It started on January 1, 1946. This board took over from an earlier group called the National War Labor Board. Its job was to help the country's economy adjust after World War II. This first board only lasted for about a year, ending on February 24, 1947.
The Second Wage Board and the Korean War
The second Wage Stabilization Board was created later, on September 9, 1950. This board was part of another government office called the Office of Defense Mobilization. It was formed because of the Korean War, which began on June 25, 1950.
Why Was It Needed?
When the Korean War started, prices in the American economy began to rise very quickly. This "surge of inflation" meant that things became more expensive for everyone. To help control this, President Harry S. Truman worked to get the country ready for war. This effort, called "mobilization," also helped to calm the economy down. The second Wage Stabilization Board played a part in this by helping to keep wages and prices stable during the war. This board worked until February 6, 1953.
