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Politics : Ask Michael Burke

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To: BGR who wrote (77705)	3/13/2000 8:10:00 AM
From: Les H	Read Replies (1) of 132070

Productivity usually surges in depressed sectors since there's a lag between improved sales and hiring. Your example really doesn't help your case. The government and most others measure productivity by gross revenue per hour worked. The less the gross revenue the less the productivity. Is there any indication that substantially more cars are sold than in the past with fewer labor inputs? As I've said before, unless one measures productivity using the other inputs, such as increased borrowing, increased capitalization, increased capital investment, etc., it gives only a partial investment. Amazon is tremendously un-productive from a profit perspective yet they probably sell a lot more per employee hour. Of course, their strategy is to use the price of the stock to implement predatory pricing to drive competitors out of business. Considering the low barriers of entry, it remains to be seen whether this will work. I believe mail order or catalog buying was around long before the net retailers. They still make only a small fraction of the sales of direct sales, despite giving away product with coupons and providing free shipping.

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