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June 28, 2005
A question..
I wonder how high fuel prices have to be in order in order for transportation costs to offset the benefit of using cheap labor.
It sees that this could be an economic disaster. If fuel prices go up, and we are shipping most all of our real goods from the other side of the world, prices are going to have to go up to compensate.
I don't think we have the industrial infrastructure here in the states to produce all of good we are buying from overseas.
Supply will go down drastically, causing some nasty inflation problems.
That threshold Transportation/Labor cost threashold is important. I wonder where it is.
Posted by reighley at June 28, 2005 07:50 AM
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