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

To: Earlie who wrote (73571)	1/14/2000 8:14:00 AM
From: Don Lloyd	Read Replies (1) \| Respond to of 132070

Earlie - "...I fully agree with the view that "the tech revolution" idea is overblown. To be really worthwhile, it should have added dramatically to productivity. It hasn't. In fact the current rise in productivity is one of the weakest of the last half century. For those who think the PC has improved productivity, factor in the training and maintenance costs and it is a wash...." I think you're missing the key point. Productivity growth does NOT lead to increased profits unless it provides a specific competitive advantage for a given company. Most of the so-called productivity gains have been fully available to all competitors and thus represent an increased investment requirement, a cost of staying in business, rather than a source of increased profits. It also drives final prices straight down. Agriculture has had a long term 3.5% rate of growth of productivity and it is a government subsidized, heavily consolidating, basket case. Even if you granted every productivity growth argument as completely true, overall profits are NOT, and will NOT be the result. The faster productivity growth, the more stress on existing businesses to compete with new entrants with less obsolete capital plant. gold-eagle.com Regards, Don