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To: BGR who wrote (29945)	4/27/2000 6:55:00 PM
From: KeepItSimple	Read Replies (2) \| Respond to of 42523

>Productivity growth equals margin expansion Productivity growth is the biggest lie in government statistics. 99 percent of the weighted growth is a result of calculations that say a worker is 100% more efficient if they are using a Pentium 600mhz machine rather than a Pentium 300mhz machine, assuming both machines cost the same. Advancements in speed and falling prices at two companies- Intel and AMD, are literally supporting the productivity numbers all by themselves. I dont know about you, but I didnt notice everyone learning to type 100% faster, or use Excel 100% faster. I have noticed prices skyrocketing for everthing from food to housing, though. If I pay 50% more for my apartment and 20% more for my food, am I 70% less efficient as a human? (hint- the whole thing is a scam)

To: BGR who wrote (29945)	4/28/2000 2:49:00 AM
From: Ken98	Read Replies (2) \| Respond to of 42523

<<Productivity growth equals margin expansion.>> How do you per se equate productivity growth at the macro level (primarily as a result from the BLS re-characterization of software costs from expenses to capital items in GDP calculation) to profit margin expansion at either the micro OR macro level?? Oh, let me guess - page 5 from Asymmetric Al's Official New Era Handbook. Productivity rate of expansion in excess of the stated rate of inflation. Pretty neat gimmick so long as you can goose GDP and use "performance enhancements" to diminish CPI. But now GDP appears to be slowing while labor costs and other pesky pipeline costs are rising. Could it be that in the light of day the productivity siren is starting to look like a Las Vegas hooker after Comdex??