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Technology Stocks : Gateway (GTW)
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To: Mike M2 who wrote (4335)10/27/1997 10:12:00 AM
From: gregor  Read Replies (1) of 8002
 
In response to your assumption that productivity is really under 1%. How or what do you base that upon. If corporations cannot raise prices because of global competition and if costs are slowly rising then productivity is the only area left to account for increasing profits.

That is my main point..Because of the difficulty of accounting for productivity gains in the service area I feel that productivity is being understated and basically driving this market. This late in a business cycle granted we are squeezing productivity i. e. BOEING for example a classic case of adding workers to fill additional orders and because of unproductivity losing their butts, so that would be one case of supporting your theory however I feel that this example is a classic late cycle squeeze......................NOW YOUR THOUGHTS....gregor
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