Adam Quote by John Chamberlain
“Two hundred years ago the first liberal economist, Adam Smith, warned businessmen that they could absorb only a certain amount of rigidity. In the easy days after World War II... wage rises could be financed out of inflationary price increases.”
About This Quote
Source Speech: Economic Commentary, post‑World War II era
Adam Smith warned that firms can only tolerate limited rigidity; after WWII, wage hikes were covered by inflationary price rises, highlighting limits of growth‑driven policies.
In simple terms: Businesses can’t handle endless rigidity; inflation‑driven wages have limits.
Key Takeaway
Recognize structural limits in wage‑price dynamics.
Themes
economics
inflation
labor markets
business strategy
Mood
analytical
cautious
Type
economic
historical
When to use this quote
- policy making
- corporate budgeting
- salary negotiations
- inflation forecasting
Key Concepts
rigidity
inflationary financing
post‑war growth
Questions to Reflect On
- How does inflation affect wage sustainability?
- What alternatives exist beyond inflation‑driven pricing?
A Different Perspective
Assumes all firms face identical rigidity thresholds, ignoring sector differences.
![“Adam Clayton Powell's entire political career has to be looked at in the entire context of the American history and the history of, and the position of the Afro- American or negro in American history. [He] has done a remarkable job in fighting for rights of black people in this country. On the…” quote by Malcolm X](https://sms4smile.com/quotes/img-quotes/caa/malcolm-x-213_adam_adam-clayton-powell-s-entire-political-c_6932.jpg)
