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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (1323)	2/28/2001 1:41:35 PM
From: Ilaine	Read Replies (1) \| Respond to of 24758

Do you really think a free market in money is a good idea? I mean, a totally free, unregulated market? My mental analogy, which you may laugh at, is the flow of traffic in a metropolitan area. Without traffic signals, and speed limits, and laws prohibiting drunk drivers and laws requiring vehicle safety, there would be chaos. Similarly, one of the things that makes capitalism workable is the rule of law. So we need traffic cops on the street, and the functional equivalent of traffic cops in the markets, I think. But I do wonder whether the Federal Reserve system is the best we can do.

To: ahhaha who wrote (1323)	2/28/2001 6:33:51 PM
From: FR1	Read Replies (1) \| Respond to of 24758

The traditional measure of labor productivity—output per hour— Let's see - two people are doing part of a big software project. The first guy takes 1,000 lines of code and 8 hours while the other guy does the same thing in 50 lines and 1 hour. Obviously the first guy is more productive because he produced many more lines of code per hour. It also seems to me that a lot of the productivity comes from new businesses coming to market with a better mousetrap to compete with the established businesses. The FED killed the IPO market a year ago and it still has no life. Does more consolidation and fewer leading businesses, which seems to be our direction, lead to more productivity?

To: ahhaha who wrote (1323)	3/11/2001 1:14:15 AM
From: Don Lloyd	Respond to of 24758

ahhaha - ...Historically it has been the case that in similar circumstances to the current evolving environment productivity measures fall. Either inflation erodes it or labor inefficiency rises due to layoffs. This isn't optimal because one person has to do the work of two and they can't do it effectively.... This sounds reasonable, but I suspect that another factor is that capacity changes lag production level changes. As production output levels fall, there will be a delay before layoffs and other capacity reductions occur, including business failures and line of business exits, resulting in falling productivity numbers, no matter how poorly measured. Regards, Don