SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 230.84-0.7%Dec 31 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Skeeter Bug who wrote (129450)8/1/2001 4:55:25 PM
From: Richard Habib  Read Replies (1) of 164684
 
Somewhat interesting discussion. My only addition is that this tendency to personalize decisions of this magnitude. I recall that prior to 96 a significant body of economists believed that current gdp/productivity calcs were under-reporting reality. The decision to move to chain weighted dollars was backed up by peer reviewed papers and endorsed by a significant portion of the field.

It's clear that chain weighted calcs would be far more complex. The equations developed to translate real dollars of computer sales for example to chain weighted dollars would be subjective although one would assume subject to consensus. But as long as that equation remains the same for a given period of time, you will always be comparing apples to apples.

So the gdp and thus productivity numbers are now significantly different beasts than they were prior to 96 but as long as that's known and apples are compared to apples what harm does it do?

One last point. I think it's instructive to explore the extremes of a system to determine it's validity. Suppose in the future we have a device at home that can instantly produce whatever we desire from atoms. Suppose I can buy that machine for $1000. That device increases my productivity to a near infinite amount - I can create whatever I want instantly but gdp wouldn't adequately reflect reality. In fact gdp would likely decline as anyone with the device wouldn't need to buy products. Again, this is exploring an extreme but I think this is the idea behind trying to capture productivity of technology in a different way than pure dollars. Rich
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News