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Bargaining Quote by William Beveridge

“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.” quote by William Beveridge
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“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.”

William Beveridge

About This Quote

Source Book: Social Insurance and Allied Services, 1942

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.

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