Excess workers are being put to work and that will begin to put upward pressure on prices.

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You get more output with fewer workers, and the excess workers are available for the new things.

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In January he launched Ford's latest turnaround effort, called the "Way Forward, " which seeks to restore North American profits by 2008 by reducing material costs, shedding excess workers and factories, and sharpening the focus of the company's Ford, Lincoln and Mercury brands.

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