Adequate Quote by Sumner Slichter
“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
Source Article: Economic Review, 1935
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.
