It all dates back to World War II. During the war, the United States temporarily suspended the operation of capitalism to maximize war production. There were many details involved in this, but the basic approach was to use wage controls, price controls, rationing, and intense social pressure to invest in low-yield war bonds to depress domestic consumption. The idea was to devote as large a share of output as possible to the cause of killing Germans. The government wanted Rosie the Riveter to help build airplanes, but they didn?t want her spending high wages on increased food and clothing consumption?they wanted all the food and fabric the country could spare to go to the battle front along with the airplanes. Wage controls led to windfall profits for some firms, which, in turn, were subject to extortionate rates of taxation. In response to all this, clever employers hit upon the idea of offering workers non-wage benefits including, among other things, health insurance. ?
Source: http://feeds.slate.com/click.phdo?i=881ab9c8089fa183428e601e2689da7b
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