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To: MythMan who wrote (30668)	10/24/2000 11:47:21 AM
From: LLCF	Respond to of 436258

<My point is if old economy companies can do it, the entire economy can do it. You're missing the point. Reading this thread would sometimes make people thinks we're going backwards > Actually I'm not missing the point at all, if all companies can do it... that's great, and we see it in black and white in earnings statements [with a little savy]. Companies aren't what we're talking about, companies get $X for their products, they don't say: "well, we actually made [(1.2760)* $X] because although we only took in $X, our new models of products were actually better than last years ones we sold for $X also. We're adding value to the economy that earnings don't show, so we're actually going to put out 'value earnings' alongside our 'actual earnings'." This is what the G does, companies don't....[yet?]. <Reading this thread would sometimes make people thinks we're going backwards > Then their missing the point... I don't think anyone has ever said that. Even Grant says what... add 100bp to CPI?? Now that's a lot, but he's not doubling it or anything. DAK

To: MythMan who wrote (30668)	10/24/2000 3:14:00 PM
From: pater tenebrarum	Read Replies (2) \| Respond to of 436258

<<My point is if old economy companies can do it, the entire economy can do it. >> the conclusion is a fallacy. you can not project micro-economic success stories on the macro-economic picture. this has been extensively discussed on the millenium crash thread if you wish to check on the reasoning. btw, no-one in his right mind will deny that productivity gains have been achieved...what is wide open to debate is the way in which they are measured by the government and the gap between their data and reality. specifically irksome is the fact that a very small slice of the economy is accounted for in such a way as to enormously distort the overall picture. and it's a matter of great importance, as the fantasy data from the BLS have distorted the economic decision-making processes from the conduct of monetary policy to the setting of exchange and interest rates by the market.