Page:CREST-Allendes Chile Supply Demand Gap.pdf/18

  Figure 6

1960=100



hikes soon intensiﬁed the pressure on official prices, which goods shortages and rampant black marketeering had already robbed of meaning.

 Real Wages on a Roller Coaster 

Allende's first move upon taking office was to redeem his pledge to improve the working classes’ lot. This he accomplished by granting an average 45% wage raise to public employees, fostering even larger hikes in private enterprise, and holding down other income by controlling prices. 