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

To: Les H who wrote (70964)	11/23/1999 8:43:00 PM
From: Don Lloyd	Respond to of 132070

Les - [[ The measure of productivity is operating income per worker or net profit margin per worker. Using unit output ignores the consequence of falling unit prices in fields such as PCs, cell phones, etc...]] Using unit output factor productivity metrics filters out the uncertainty due to chaotic final product market prices and the effects of monetary policy. The fact of falling final product prices just makes the argument that productivity improvements need not lead to improved economic measurements more solid. If unit factor productivity is increasing, the overall real economy is being enhanced, but both the economic statistics and the financial performance of businesses are not necessarily improved, as all the benefits may flow to the increased satisfaction of the subjective choices and values of consumers. Regards, Don