Wage Controls

Wage controls are government measures that set limits on how much employers can pay their workers. These controls can be introduced to curb inflation, stabilize the economy, or ensure fair pay. By capping wages, governments aim to prevent rapid increases in labor costs, which can lead to higher prices for goods and services. However, wage controls can also lead to problems, such as reduced motivation for workers, difficulty attracting talent, and potential shortages of labor, as businesses may find it hard to operate within the set limits.