The famous confrontation between President Kennedy and the steel industry in 1962 illustrates the
A) general inability of government to control big business effectively.
B) power of moral suasion without the need to use economic incentives.
C) power of presidential pressure in enforcing wage and price guidelines.
D) tendency of major industries to act in the public interest regardless of guidelines.
E) importance of using the antitrust laws to reduce monopoly power.

Question

Quizplus · Accepted Answer

The famous confrontation between Kennedy and the steel industry in 1962 was significant in showing the power of presidential pressure in enforcing wage and price guidelines. Kennedy was able to put pressure on the steel industry to roll back a price increase, demonstrating that the government could use moral suasion without resorting to economic incentives. This event is often cited as an example of presidential leadership in enforcing economic policies.

The Famous Confrontation Between President Kennedy and the Steel Industry