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Strategies & Market Trends : ahhaha's ahs

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To: ahhaha who wrote (1323)	3/11/2001 1:14:15 AM
From: Don Lloyd	of 24758

ahhaha - ...Historically it has been the case that in similar circumstances to the current evolving environment productivity measures fall. Either inflation erodes it or labor inefficiency rises due to layoffs. This isn't optimal because one person has to do the work of two and they can't do it effectively.... This sounds reasonable, but I suspect that another factor is that capacity changes lag production level changes. As production output levels fall, there will be a delay before layoffs and other capacity reductions occur, including business failures and line of business exits, resulting in falling productivity numbers, no matter how poorly measured. Regards, Don

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