Anti-Inflation Act

Prior to 1975, the Bank of Canada had warned the government about the dangers of the current inflation which was roughly 10% per year. In response, the government introduced Bill C-73, the precursor to the Act, to the Parliament of Canada. Previously, Pierre Trudeau had mocked the idea in the 1974 Canadian federal election. == The Act ==

Amongst its many controls, it limited pay increases for federal public employees and those in companies with more than 500 employees to 10 per cent in the first year, 8 per cent the next, and 6 per cent thereafter. Additionally, the Anti-Inflation Board was created to set wages and prices.The price and wage controls were enforced until 1978, and the act was repealed in 1979. A similar program aimed only at the public sector was introduced in 1982. == Reaction ==

The Act proved highly contentious and there was much debate over whether the Parliament of Canada had overstepped its powers in enacting the law. Consequently, the government put a reference question to the Supreme Court of Canada, and in 1976 the court passed down its opinion in Reference Re Anti-Inflation Act, which declared the law constitutional. ==See also==