"I might say that when the settlement was made the Nixon administration issued what they called a second inflation alert in which the General Motors settlement was branded as being inflationary and bad for the country"

In this quote, Leonard Woodcock, a noteworthy American labor leader and previous president of the United Car Workers (UAW), discusses a defining moment in labor history involving a settlement in between General Motors (GM) and its workers. His declaration highlights the stress between labor interests and federal government economic policies throughout the Nixon administration.

Woodcock describes a settlement in between GM and its workers, likely including wage boosts or enhanced labor conditions. Such settlements were often viewed as triumphes for labor unions and workers, making sure much better living standards and fair settlement. However, Woodcock mentions that the Nixon administration provided a "2nd inflation alert", recommending that they viewed the settlement as a potential trigger for further inflation. This suggests a wider concern within the federal government about inflationary pressures in the economy at the time.

The declaration "branded as being inflationary and bad for the nation" exposes the administration's stance that the wage boosts or benefits negotiated in the settlement could cause higher production costs for GM. These increased costs could potentially be handed down to customers in the form of greater costs for cars, thus contributing to general inflation. Inflation is perceived as damaging since it decreases buying power and can result in economic instability.

Woodcock's remark captures a traditional economic dispute: the balance between fair earnings for employees and the macroeconomic implications of increasing expenses. The federal government, wary of inflation, saw these settlements as potentially exacerbating inflationary trends, while labor leaders like Woodcock argued for the requirement of such arrangements to improve employees' incomes.

This quote encapsulates the friction in between pursuing financial stability and resolving the needs of workers, reflecting the intricacy of policymaking where labor rights, financial development, and inflation control often converge. The declaration serves as a pointer of how different stakeholders interpret economic actions based on their perspectives and top priorities.