US Presidency
1978

If we do follow them, they will slow prices down so that wages will not have to chase prices just to stay even. And they point the way toward an eventual cure for inflation, by removing the pressures that cause it in the first place. In the last 10 years, in our attempts to protect ourselves from inflation we've developed attitudes and habits that actually keep inflation going once it has begun. Most companies raise their prices because they expect costs to rise. Unions call for large wage settlements because they expect inflation to continue. Because we expect it to happen, it does happen; and once it's started, wages and prices chase each other up and up. It's like a crowd standing at a football stadium. No one can see any better than when everyone is sitting down, but no one is willing to be the first to sit down. Except for our lowest paid workers, I am asking all employees in this country to limit total wage increases to a maximum of 7 percent per year.