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Technology Stocks : Applied Materials No-Politics Thread (AMAT)
AMAT 259.14+1.1%10:16 AM EST

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To: Sarmad Y. Hermiz who wrote (4655)12/27/2002 6:59:09 AM
From: Road Walker  Read Replies (2) of 25522
 
Sarmad,

re: This way, when business picks up, I can just hire another cook and driver. Why will society suffer, just because I can offer the extra goods at a low cost - since I don't need to build a new kitchen, or buy an extra truck ? After all, we are getting the final benefits without the expense. How can that be bad ?

That's great for you and your customers. But it's not so great for the company that makes stoves, or the companies that make the parts for those stoves, or for the suppliers of myriad services to those companies. It's not good for the merchants in the towns where the stove manufacturer and part manufacturer are located; maybe not good for the local caterer, if those companies lay off employees.

A dollar spent on capital goods gets spend many times, as it flows downhill though suppliers and workers, and those that serve them. It's an important part of the economic growth engine.

John
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