On balance, the mining industry is not a noteworthy offender in the inflationary picture. Quite the contrary is construction whose dismal record qualifies it, along with past governmental policies, as the leading offender in contributing to inflation. Construction is the classic example of cost-push inflation. The contractor is uniquely able to pass on his cost increases to the customer and does so every time he bids a new job. In his pricing there is no discipline from world competition or even competition from neighboring cities. He produces a product for the local market from costs incurred in the local market. Keen competition holds down his profit margin, and he is concerned only that his costs are no higher than his competitors. If his customer wants a sewer plant in Portland, Oregon, it is immaterial that it could be built cheaper in Portland, Maine. The inflationary impact of construction costs speaks for itself. Prices for building materials and equipment are increasing. The wage costs are high and escalating. First-year wage settlements exclusive of expensive fringe benefits, as reported by the Bureau of National Affairs, were: In 1962 12.4 63 14.9 64 15.3 65 17.5 66 19.8 -3-