The greatest danger to an adequate old-age security plan…
“The greatest danger to an adequate old-age security plan is rising prices. A rise of 2% a year in prices would cut the purchasing power of pensions about 45% in 30 years. The greatest danger of rising prices is from wages rising faster than output per man-hour… Whether the nation succeeds in providing adequate security for retired workers depends in large measure upon the wage policies of trade unions.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Inflation erodes pension value; wage policies critically affect retirees’ security.
In simple terms: Inflation hurts pensions; wages matter.
Key Takeaway
Control inflation and align wages with productivity.
Themes
economics
retirement
inflation
wage policy
Mood
analytical
cautious
Type
economic
policy
When to use this quote
- pension planning
- policy making
- financial advising
- union negotiations
Key Concepts
macroeconomics
social security
labor unions
Questions to Reflect On
- How can policy balance wages and inflation?
- What safeguards protect retirees now?
A Different Perspective
Wage hikes can outpace productivity, worsening inflation.