re: Greenspan stated what we still have 50% productivity growth to go in technology
Yes, he has become a "New Economy" Believer. We'll see, in this recession, whether productivity gains are truly real, or just an artifact of the long economic expansion in the 1990s. We'll see, and then we have to decide whether we believe the government statistics.
As an example: the Dell "just-in-time" manufacturing method, holding near-zero inventories of parts, not building the product until you've sold it (and, better yet, gotten paid), this is a big part of the NewEconomy efficiencies. Everyone was supposedly going to JIT. Yet, this method is dependant on a flawlessly-operating global transportation system. Close down the nation's airports for a few days, and thousands of execs are saying in meetings, "gee, guys, I think maybe we need to hold a bit more inventory". More inventory = lower productivity. |
