Fighting Inflation Means Taking On Corporations

Fighting Inflation Means Taking On Corporations

Since the Carter administration, monetary policy has been the chief tool presidents use to curb inflation, which has been on the rise: The Consumer Price Index rose by 6.8 percent in the year through November — the fastest pace since 1982. The Federal Reserve chair, Jerome Powell, has pivoted to a tighter monetary policy, announcing plans to taper the central bank’s bond purchases and raise interest rates next year.

Yet inflation doesn’t rise and ebb just because of monetary policy. It’s largely the result of choices businesses make. And history shows presidents have the power to stem inflation by taking on corporate power — if they choose.

While Franklin Roosevelt is best known for the New Deal expansion of the social safety net, he also protected Americans against wartime inflation. During World War II, his Office of Price Administration imposed price ceilings on three million businesses and more than eight million goods. The office also put caps on rents in 14 million dwellings occupied by 45 million residents and issued ration stamps for goods like meat to manage supply. According to Gallup polls, more than three-quarters of the public favored extending controls after the war.

When Harry Truman lost a bitter fight in