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Technology Stocks : Rockwell-Spins off Conexant (CNXT) -- Ignore unavailable to you. Want to Upgrade?

To: David W. Taylor who wrote (1108)	5/18/2000 11:46:00 AM
From: MeDroogies	Respond to of 2013

That's a flaw in the productivity gauge, and one that The Economist frequently writes about. Measurable output can say good things, but often the output is garbage (look at the Soviet Union's productivity). By most measures, the SU performed incredibly well in terms of general productivity increases. But it was useless productivity. Still, it was measurable. What matters is useful output. As I responded before, your code is likely useless to me if I meet you once, outline the concept of what I want and you go put it together without speaking to me until you're done. I've had people do that, and it's never come out well for anyone. However, if you increase your contact with me during the coding period, your output may decrease, but be far more valuable. That's why the supposed illusory gains are quite real.

To: David W. Taylor who wrote (1108)	5/18/2000 2:07:00 PM
From: gpowell	Read Replies (1) \| Respond to of 2013

The only important factor in increasing productivity is the desire for people to work, create, and take risk. When attitudes change such that we demand compensation in excess of output, the inflation spiral begins, and if these attitudes persist, real economic growth can become negative. The interesting point here, is that this subjective factor, the most important to real productivity gains, can not be measured. Are attitudes changing, do you and I demand more wages for the same, or less, work? It is interesting that as strong as the economy is, there is an increasing bearish attitude, and not just about the stock market. I hear speculation of an imminent recession nearly everyday now. So you have to ask yourself, why is AG raising rates? To combat inflation and prevent a recession, or to attack the psychology of envy? After all, people typically do not demand an increase in compensation when facing a possible recession. The latter question is an important consideration when deciding whether you should be invested in CNXT. In an environment of rising interest rates in a strong economy, where do you want to put your money? I want to be in companies growing 40% to 100% a year, in sectors that are growing at the same rate or faster. As bubble headed as this may sound, this means telecommunication and Internet related companies. (The above doesn't mean that cash won't be taken out on occasion as the fool public bids the price of good companies to insane levels.)