If we continue to use industrial resources for other purposes – defence, housing, etc. thus preventing the diversion of resources to export work, the [exchange] rate will continue to fall. ... the basic idea of internal stability of prices and employment, which had dominated economic policy for so long will not be maintainable. It will not be possible to maintain stable internal prices and wages; it will not be possible to avoid unemployment. There will be a continuous process of change and readjustment and much of this will be painful. (Rab Butler)

If we continue to use industrial resources for other purposes – defence, housing, etc. thus preventing the diversion of resources to export work, the [exchange] rate will continue to fall. ... the basic idea of internal stability of prices and employment, which had dominated economic policy for so long will not be maintainable. It will not be possible to maintain stable internal prices and wages; it will not be possible to avoid unemployment. There will be a continuous process of change and readjustment and much of this will be painful.

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basic change continue defence diversion employment exchange export fall housing idea industrial policy possible process rate readjustment stability stable thus use wages work etc unemployment

Related quotes

As a result of uncertainties caused by the French referendum, massive speculative flows have continued to disrupt the functioning of the exchange rate mechanism. As Chairman of Ecofin I have tonight called an urgent meeting of the EC's monetary committee to consider how stability might be restored to the markets over the next few days. In the meantime the Government has decided that Britain's best interests would be best secured by suspending our membership of the ERM with immediate effect. As a result, the second of the two interest rate rises announced today will not take effect.

Norman Lamont

The time has come to speak out. Britain is now locked in a vicious spiralling interest rates...The net result of completing the vicious circle is that prices have increased, the rate of inflation has gone up, the money supply has increased, unemployment has gone up, the rate of bankruptcies has increased, the industrial base has been further eroded, the Government's borrowing requirement has increased and as a result there is more pressure to raise interest rates yet again, to be followed inevitably by the same vicious circle. It is this that must be broken.

Edward Heath

And since any inflation, however modest at first, can help employment only so long as it accelerates, adopted as a means of reducing unemployment, it will do so for any length of time only while it accelerates. "Mild" steady inflation cannot help-it can lead only to outright inflation. That inflation at a constant rate soon ceases to have any stimulating effect, and in the end merely leaves us with a backlog of delayed adaptations, is the conclusive argument against the "mild" inflation represented as beneficial even in standard economics textbooks.

Friedrich Hayek

Indeed, let us be frank about it. Most of our people have never had it so good. Go around the country, go to the industrial towns, go to the farms, and you will see a state of prosperity such as we have never had in my life time-nor indeed ever in the history of this country. What is beginning to worry some of us is, is it too good to be true?-or perhaps I should say, is it too good to last? ... Our constant concern to-day is, can prices be steadied while at the same time we maintain full employment in an expanding economy? Can we control inflation? This is the problem of our time.

Harold Macmillan

What to children learn at school? They go varying distances in their studies, but at any rate they learn to read, to write and to add - i. e. a number of techniques, and a number of other things as well, including elements (which may be rudimentary or on the contrary thoroughgoing) of scientific' or 'literary culture', which are directly useful in the different jobs in production (one instruction for manual workers, another for technicians, a third for engineers, a final one for higher management, etc.). Thus they learn 'know-how.

Louis Althusser