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.”
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.
Consider reforms to decouple wages from price inflation.
Themes
Mood
Type
When to use this quote
- government budgeting
- collective bargaining
- price setting
- macroeconomic policy
Key Concepts
Questions to Reflect On
- How can wage policies be designed to avoid inflation?
- What role should government play in moderating price spirals?
Assumes all wage negotiations are competitive; may ignore cooperative models.