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Outsourcing and the C.P.I.

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Boanerges Posted: Mon, Feb 23 2009 11:16 AM

I understand the theory that outsourcing lowers the price of goods here so if wages decline it is not neccessarily bad because our purchasing power increases. In discussing tis with someone they brought up the C.P.I. and it shows that prices have been indeed increasing even getter than inflation. So how does that reconcile with the previous mentioned theory?

Thanks

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