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From: ahhaha	6/13/2013 8:27:13 PM
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Some years ago I discussed inflation from the point of view of average price vs marginal price of labor. One of the regulars argued that this wasn't a problem because of substitutability, corporations constantly substitute those materials that are rising in price fastest with alternate cost materials and/or ones that rising more slowly. This process has a natural limit. However, when labor cost pushes marginal cost substitutability is of no avail. The US has now passed the point of no avail.

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