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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: Les H who wrote (103935)5/22/2001 11:35:18 AM
From: Haim R. Branisteanu   of 436258
 
Les and that is the key


McCulley sets up this analogy: If you
give the man who mows your grass a
power mower instead of a pair of
scissors he'll be more productive. The
company that sold the mower will be
more profitable. But if the landscaping
company can't charge enough to pay the
man pushing the mower and cover the
depreciation on the lawn mower, he
won't make money and will go out of
business.

"The productivity miracle of recent
years was in part a mirage born of a
bubble," McCulley says. The bubble
was an unprecedented investment in
technology that increased labor
productivity and capital profitability at
tech firms, without increasing total
factor productivity.
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