There is no inherent mechanism in our present system which…
“There is no inherent mechanism in our present system which can with certainty prevent competitive sectional bargaining for wages from setting up a vicious spiral of rising prices under full employment.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
The current system lacks a built‑in safeguard against wage‑driven price spirals when employment is full.
In simple terms: No automatic protection against wage‑price loops in full employment.
Key Takeaway
Consider reforms to decouple wages from price inflation.
Themes
economics
inflation
labor markets
policy
employment
Mood
concerned
analytical
Type
policy
economic
When to use this quote
- government budgeting
- collective bargaining
- price setting
- macroeconomic policy
Key Concepts
price‑wage spiral
full employment
inflationary pressure
Questions to Reflect On
- How can wage policies be designed to avoid inflation?
- What role should government play in moderating price spirals?
A Different Perspective
Assumes all wage negotiations are competitive; may ignore cooperative models.