Labor Unions (1950)
... the labor movement is a slight embarrassment, not because of its impact on the distribution of income, which over the long pull is negligible, but because of its impact on the flexibility of the whole price structure. With a strong labor movement we cannot afford to have deflations; and this may mean that we cannot escape secular inflation.
"Collective Bargaining and Fiscal Policy," American Economic Review, May, 1950; Collected Works, Vol. I, p. 291.
Back to economic progress (1949)