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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Don Lloyd who wrote (70905)	11/22/1999 10:39:00 PM
From: Mike M2	Respond to of 132070

Don, good point. In the Industrial economy we could check that more easily. Now with the information age it is much more difficult. My gut feel is the productivity stats are overstated . I'm too tired to think now - we'll argue in the morning -g- Mike

To: Don Lloyd who wrote (70905)	11/23/1999 9:11:00 AM
From: Freedom Fighter	Read Replies (1) \| Respond to of 132070

Don, >>There is no reason to assume that productivity improvements necessarily lead to increased profits. Company specific productivity improvements that are unavailable to its competitors usually increase profits, but rapid widespread technological change can easily destroy profitability as adaptation becomes necessary for survival, as opposed to generating excess profits.<< I agree (especially as it relates to the internet). It seems to me that any destruction of profits would be temporary though. In any event, I wasn't talking about excess profits. (higher returns on capital). I was talking about the economic growth that comes from improved productivity. We essentially monetize productivity and increase the income streams. Corporate profits tend to track GDP growth within a range over the long haul. But I'm really not interested in what the government says productivity or GDP is. I'm interested in where corporate profits are heading and why. I can measure that and have confidence in those numbers. Wayne