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

To: TimF who wrote (85644)	11/17/2000 2:24:27 PM
From: Thomas M.	Read Replies (1) \| Respond to of 132070

In that case, the better computer for the same money would benefit the buyer, allowing him to be more productive. This is where it would show up in the productivity numbers, at the PC buyer's end. Except, it hasn't shown up, in government stats or in company stats. Productivity numbers have been abysmal in all of these sectors that are buying lots of computers. That's not to say they aren't increasing productivity, just that it isn't happening at an earth-shattering rate. That's about what one would expect. I mean, a 600 MHz PC is only slightly better at word processing than a 133 MHz PC. Tom

To: TimF who wrote (85644)	11/18/2000 9:04:28 AM
From: Mike M2	Read Replies (1) \| Respond to of 132070

GDP attempts to capture spending and income flows but applying the hedonic deflator to create chain weighted GDP reflects spending that never took place. The economic benefit of productivity is that the increased dollar value output per man hour increases income in the form of higher profits and/or wages. Your lifestyle may be improved due to higher performance and or quality but it does little to boost incomes. No other major industrial nation uses hedonic pricing. In addition, last year the US became the only country which capitalizes software. Mike