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Politics : Ask Michael Burke
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To: gnuman who wrote (71572)12/8/1999 9:03:00 AM
From: Les H  Read Replies (2) of 132070
 
How useful is productivity when one throws capital at a business to generate higher revenues? You can always throw tens of millions of dollars in advertisiting and promotions to increase revenue, and perhaps some money into technology into enhancing worker outputs. But is this really improved productivity? Is it productivity when one sustains large losses and increases revenues while using raised capital to attempt to capture market share? Productivity measures, based on just labor and revenues or per-capita GDP, seem to miss how the 'new era' economy works, thus overstating productivity.
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