Politics and Economics of a Freeze

Politics and Economics of a Freeze THE IDEA of a wage 'freeze', which was revived by the recent Chief Ministers' conference, is rapidly becoming a major cause of tension within the Government. The Finance Minister, as was to be expected, took advantage of the views expressed at the Chief Ministers' conference against payment of additional DA to Central Government employees if State Government employees were to be denied a similar increase, to begin to toy with the 'freeze' idea. But for the fall of the Congress Government in Madhya Pradesh, which diverted attention for some time, differences on this question within the Government might have been by now headed for a showdown. As it is, the tension is steadily mounting and there may be a crisis soon.