In a time of recession, businesses examine their production costs. Such costs are primarily comprised of material inputs and labor. There is a fair amount of democracy when it comes to material input costs. That is to say, firms now buy their inputs from around the world and the ultimate base price is often tied to a widely-traded commodity. But when it comes to labor, that's local and this time around, the declines in labor costs may be more than just cyclical and may have to involve some structural re-thinking. The auto sector is a case in point.

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