Answer

Price and wage control between the autocrats and democrats resulted in different effects depending on the type of government and the amount of power they had on the two variables. The Nazis, for example, had a stable and elaborate price control at all times[1]. The management of price and wages in German caused the withdrawal of goods from the market, reduced quality produced goods, formed the black market, and the battering of all previous cash transactions. The Nazis managed to secure lands for their future generations, making the sole controllers of market economies for themselves in times of war. A government can control the supplies of goods and services at a cheaper price in times of war hence benefiting their interests ¹. The control of the price and wages, therefore, became monotonous.

However, the control of the German totalitarian rule did not last long before Hitler came up. The Germans failed to control their wages and prices; hence their lack of backup plan in case of an intruder put them at the mercy of Hitler and his soldiers when they invaded the German land. The autocrats led by Hitler imposed harsh taxes, currency restrictions, curtailed production and redistribution of property, putting the Nazis in control of almost all financial liberalizations ¹. The organized unions came on strong on the German organization that they lost control of their land. The economic landslide of the Germans, including unemployment upsurge, payment of war reparations, and financial difficulties, paved the way for the autocrats to take over ¹. The German situation made it impossible for them to continue with their price and wage controls along their borders.

The wage and price control of the autocrats and democrats were different depending on the type of governance. The autocrats appear to have a stable price and wage control which they used for their benefit. Autocrats used their financial liberalization to bolster their economy, making politics less attractive to their oppositions, therefore, rendering Germans weak before stabilizing autocracy². Secondly, the autocrats used the chance to make their assets more mobile, especially when stabilizing their movement became too costly². Autocrats took advantage of their stable financial liberalization to strengthen their political campaign and work against their opposition. The mobility of the assets gave the ruling party control of redistribution hence promoting democracy over dictatorship[2]. During the war in economics, the autocrats managed to control the assets since they were more stable financially than their counterparts.

The wage and price control, however, become ineffective since there is no balance in governance. Autocrats appear to have created an excellent foundation for their financial liberalization, which enabled the gain control of the significant government assets against their opposition. The rule went as far as making policy decisions in a democracy. Although economic elites have a say in democracy, their political freedom is overboard as institutions provide fewer constraints ². Economic elites have liberty as a result of the stable financial liberation from the autocrats. While the government tries to equate control between the autocrats and the democrats, the financial stability of the autocrats puts them a foot ahead in control of both economic liberalization and tax rates. In contrast, Democrats have their way with tax rates hence making the poor less attracted to revolution. Therefore, the effect of wage and price controls in both the autocrats and democrats provided a different governance level.

The autocrats appear to have a long-lasting control of prices and wages compared to the democrats. For example, the German government had a weak foundation to their management that put them in situations that required the help of the Nazi’s hence lose their control to the autocrats. As an example of the democrats, the Roman Empire had partial control over its assets before it failed in 200 CE when the late Roman Empire took over due to failed economic and political instability[3]. Unlike the autocrats, Democrats tried their best to hold back some of the significant economies of their land. Autocrats had a more stable control over their assets to manipulate trade and taxes to their advantage over their opposition.

The Roman Empire tried to stabilize its control through good planning. Institutions stayed and worked at their best. For example, the army would participate in building roads and monuments when they were not at war in which the latter was prevalent in the early Roman Empire ³. The Roman Empire took advantage of slaves to help boost their economy as they offered free labor. On the autocrats’ side, they utilized the help and knowledge of economic elites who gave good ideas, enabling the autocratic governments to overpower democrats in market control. The Nazis presented many solutions to the German ailments that gave them access to the German’s economic breakthrough. Hitler then imposed complex economic policies that were hard to break hence a long-lasting regime. Autocrats were, therefore, better at maintaining a long-term wage and price control system.

Price and wage controls play a vital role in the spectrum of the political and economic regime. Most early governments manage to rule for as long as they control the price and wage financial liberalizations of the nation and movements. The England government went the democratic way, which had them control their markets for a while. The average wages of the English people stayed constant for several years despite the fluctuation in the labor market and the employment relations which described the market economy of early modern England[4].  The Germans too had a simple economic policy that created problems at their camp, paving the way for Hitler and his group of financial elites to take over the economic market of the already unstable German economic world.

The two forms of government used different means to control their wages and prices. Autocrats chose the command method to ensure their economic policies remain complex hence continue to rule over their opposition. Democrats, on the other hand, chose the free-market way to control their wages and prices, a step that put them in strained financial situations and in danger of being ruled over. Wages and price controls determined the period in which a government stays in power. The Nazi-controlled and manipulated prices in times of war to stabilize their movement, leaving the Germans with little or nothing to control, making them weaker than attackers ¹. Autocrats controlled trade goods and tax rates, while democrats were left to manage a portion of tax rates customarily owned by the poor.

 Democratic governments exhibited the capability to foresee developments in their nations through better management of the trade revenues. Therefore, wages price control takes away the elements of democracy more than it contributes to their strength. The Roman Empire soldiers took pride in building their nation through constructing roads whenever they were not at war ³. Their contribution made their camping site at the monument easier as it was their training. Trade unions created by the Germans made it possible for them to conduct trade deals outside their territories ¹. Although slaves provided cheap and free labor, their rights were considered a motivation to build the country with less opposition. However, the free market method put democrats in challenging financial situations that made them targets to autocrats.

Wages and prices take a lot from the democratic governments. As they try to offer a free- market to all people, organizations with ill will infiltrate the government and impose complex policies making it hard for other people to build the market economy. The Germans, English, and the Roman Empire put themselves in positions that led to a failed democracy and had to reestablish while German was taken over by the Nazis ^{1, 3, 4}. Autocrats rule with command and dictatorship. The autocratic movement makes it hard for non-government organizations to have control over y government assets. German’s lot to the Nazis through their failure to control their economic market result in an unstable government. However, there are some benefits gained due to the control over wages and prices in democratic governments.

One must know the time and period to impose price and wage controls. Governments are legible to attacks from external and internal forces that force them to economic wars at any given time. Foreign trade and inflation of market prices call for wage controls in the country[5] . Controlling businesses like gold trade to ensure no unimaginable prices would protect a country from getting into debt and losing control over market economies. The crisis on non-renewable natural resources puts a nation in tight positions that only an imposition on controlling the price and wages would liberate it from the oncoming financial crisis.

Inflation of prices and wages by private entities would force a government to deliberate on controlling the sectors to avoid getting into unnecessary debts and economic wars with other nations. Taking control of treasury and payments would deliver a government from registering balance and payment deficits imposed by enemies of the government. Additionally, when one suspects any illegal trades with the nation’s natural resources, loyal government bodies and agencies must take over to protect the country’s interest, hence reducing chances of stubborn rates of unemployment. Depending on the situation, a country could impose complex economic policies to protect the country’s interests or allow a free-will economy.

[1] Chapter 9. 2021. “National Socialist Germany, Economic History: Chapter 9”. Presentation, 2021

[2] Pond, Amy. 2017. “Financial liberalization: Stable autocracies and constrained democracies”. Comparative Political Studies 51 (1): 105-135. doi:10.1177/0010414017695333.

[3] Temin, Peter. 2006. “The Economy of the early Roman empire”. Journal of Economic Perspectives 20 (1): 133-151.

[4] Tenim, Peter. 2001. “A market economy in the early roman empire”. Social Science Research Network Paper Collection, 1-46.

[5] Abrams, Burton A., and James L. Butkiewicz. 2016. “The political economy of wage and price controls: Evidence from the Nixon Tapes”. Public Choice 170 (1-2): 63-78. doi:10.1007/s11127-016-0381-0.