Special Assistant to the President for Consumer Affairs__ VIRGINIA H. Knauer. The Cost of Living Council was established on August 15, 1971, by Executive Order 11615, and was based on the Economic Stabilization Act of 1970 (84 Stat. 799), as amended. The act was further implemented by Executive Order 11627 which established the Price Commission and the Pay Board. Subsequently, on January 11, 1973, Executive Order 11695 provided for the termination of the Price Commission and the Pay Board (accomplished March 1, 1973) and for the continuation of the Cost of Living Council. Building upon the economic stabilization activities since August 15, 1971, the Cost of Living Council develops and recommends to the President policies, mechanisms, and procedures to achieve and maintain stability of prices and costs in a growing economy; maintains consistency of price and wage policies with fiscal, monetary, international, and other economic policies; informs the public, agriculture, industry, and labor concerning the need for controlling inflation, and encourages and promotes voluntary actions to that end. The Cost of Living Council administers the special regulations applicable to the food, health, and construction industries; reserves the authority to establish mandatory standards to assure that future action in a particular industry is consistent with national goals; monitors, with the assistance of the Internal Revenue Service, prices and wages by reviewing reports received from firms and employee units, con ducting spot checks and audits of firm records, and using government and trade data; retains delegated authority to stabilize interest rates at levels consistent with orderly economic growth; and encourages responsible economic behavior for the public, industry, labor, and agriculture by informing them of the need to control inflation and by promoting voluntary action to accomplish that objective. Construction Industry Stabilization Committee Department of Labor Building, Washington, D.C. 20210 |