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

To: Skeeter Bug who wrote (87040)	12/17/2000 1:41:18 AM
From: mishedlo	Read Replies (1) \| Respond to of 132070

Well I just built my home. Am I in deep shit? M

To: Skeeter Bug who wrote (87040)	12/17/2000 10:53:02 AM
From: Mike M2	Read Replies (1) \| Respond to of 132070

Skeeter, the process that you describe is called geometric weighting - substituting lower priced goods for higher priced goods. The theory of hedonic pricing is that the dramatic increase in computer power or quality improvements in other products makes the product worth more than the real dollar price for which it is sold. The trouble is hedonicly deflated GDP does not create any incremental revenue or income for anybody. the tech companies report their revenue and profits in real dollars not hedonicly deflated results. IMO it is a statistical mirage designed to delude the public into believing that the origins of our " prosperity" is a technological revolution rather than unprecedented excesses in debt. mike ho ho ho