Maintaining moderation in wage claims

Sunday, May 15, 2011

There are, alas, at present many politicians and other influential persons who in designing present fashionable Full – Employment policies argue as if these supply – side quality reforms were alone of importance in the labor market. They put relatively little stress on the problems of maintaining moderation in wage claims – to the astonishment of some economists who, like the present author, consider that the supply price set for a good or service is as vital a factor as its quality in determining its saleability.

Basic changes are needed also in business attitudes, trade and industry policies, and in monetary and fiscal arrangements to ensure sufficient investment in effective capital equipment and the provision of an adequate and appropriate infrastructure.