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Technology Stocks : Intel Corporation (INTC)
INTC 40.51+0.4%3:59 PM EST
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To: Fred Fahmy who wrote (86612)8/4/1999 9:54:00 PM
From: Robert Douglas   of 186894
 
This is a key point that many, if not most, people overlook. Our economy is becoming more and more "electronics"/technology oriented. The technology companies of today are driving a huge chunk of the economy and this will grow with time. As you have correctly pointed out, the products generated by this ever growing segment of the economy are under deflationary NOT inflationary pressures.

This is true if you are talking only about the manufacturing segment of the economy. Where this is misleading is that manufacturing is becoming a small part of the overall economy. Service industries make up more than two-thirds of the national output. It is these areas where inflation may become a concern. Technology deflation will influence these only indirectly through productivity gains.

-RD
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