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NEW YORK (Real Money) -- So now it's inflation going into Quarter No. 3. That's the concern. That's what's making the Federal Reserve look comical now: the inflation in beef, chicken, cheese, coffee, milk, pork, dairy, almonds, gasoline, airfares, homes and airfares, and let's throw in limes and avocados while we are at it.
Forget that there really is little to no labor inflation. We get average work hours and we get average wages, and they have been stagnant for so long that we don't even talk about them much anymore. They have become a given.
Forget that it is almost impossible to "get someone" a job. I talk to enough people in enough industries that I can confidently say this: Unless you want to be at the lowest end of a service industry or you want to work in the oil, gas and pipeline businesses, you can't make a call, you can't place, you can't even get a call back.
It's like that everywhere. The tremendous innovations in industrial applications have made it so that your company is an oddity if it doesn't fire a certain percentage of people per year.
The Web's amazing power to create price discovery in almost everything makes for the destruction of pretty much every higher-priced retailer. It means the inability to raise prices without the quick loss of sales to a competitor unless you offer the highest-quality, most differentiated merchandise, along the lines of Restoration Hardware (RH).