This was policy makers dictating to corporations, not the other way.
It was a product of (1) intense focus on wage freezes during the labor shortage of World War II, and (2) the growth of unions, which focused on winning concessions from management, not government.[0]
I agree it's a terrible policy. Corporate management now accepts and exploits it. But it was not a decision by 'capital' to spite labor or self-employment. It is the consequence of 'progressive' tax, regulation and labor policy.
It was a product of (1) intense focus on wage freezes during the labor shortage of World War II, and (2) the growth of unions, which focused on winning concessions from management, not government.[0]
I agree it's a terrible policy. Corporate management now accepts and exploits it. But it was not a decision by 'capital' to spite labor or self-employment. It is the consequence of 'progressive' tax, regulation and labor policy.
[0]http://www.taxhistory.org/thp/readings.nsf/ArtWeb/67493CA6B8...