33 construction industry in the long run. The first is inflation -- a persistent evil inherent in our economy so long as we have a cost structure that is dictated by the demands of big labor and by deficit financing. The underlying strength of the inflationary forces is dramatically illustrated by the failure of prices to fall during the current recession. As long as labor demands and receives increases in wage rates beyond their share of the increases in labor productivity, inflation will continue to be with us and will continue to erode away the purchasing power of the dollar. The contractor can operate with greater safety in an economy of stable costs, and inflation brings with it all the hazards of uncertain costs.