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To: Seeker of Truth who wrote (33573)10/23/2000 9:05:29 AM
From: LLCF  Respond to of 54805
 
< I can tell you that in my life a recent move to a faster
computer, Pentium III 933MHz, Rambus memory, has made my programming tasks much faster to do. I'm in high gear at last. It's a pain to be, unproductive while one is waiting for a compilation or for the results of a small test job.>

These anecdotes are important because it shows where real productivity is found. So you are presumably pumping out greater end product per man hour... that is ALREADY measured in 'output per worker' by the 'old' method of calculating productivity. The government is double counting... they are saying that PLUS the computer you bought is actually cheaper than last years equally priced model because there are upgrades.

To sumarize: The productivity increases will show up when there [your example]... but the government 'boosts' these making inflation look tamer and productivity look higher than it would otherwise be.

< Your experience isn't necessarily typical.>

No actually my 'experience' is very typical... part of your experience is imbedded in what I'm talking about... ie.

" Users of our software who buy a faster computer are much
happier."

As am I and millions of other PC users that sit at home and cruise the web! I am not begrudging fantastic technological gains that improve our life! It's great! However, if someone uses a PC recreationally, like a new and improved windsurfer or snowboard [2 brand new recreational technologies] why should the government include those purchases in their productivity numbers?? My argument before holds, we don't 'subtract' qualitative negatives in our economy from GDP or productivity numbers... why include the positives?

DAK