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

To: Thomas M. who wrote (85638)	11/17/2000 12:34:08 PM
From: Don Lloyd	Respond to of 132070

Tom - ...Economics is about money, and that's all that matters. If computers are helping companies achieve large productivity gains, it would show up in the bottom lines. It isn't. ... The reason that the productivity gains do not show up on the bottom line is that, while they are often real in a unit productivity sense, they are also generally available to all the competitors, and thus only show up as a new cost of staying in business. Increased productivity will either result in lower prices and/or higher wages as both the final product and labor markets are competitive. If this is temporarily not true, the higher profits will attract new competition. Regards, Don