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To: Don Lloyd who wrote (115841)	8/7/2001 9:14:45 AM
From: PMG	Read Replies (1) \| Respond to of 436258

I think this is just another resolution of the same equation. But what caused what? Isn't it even the goal of productivity enhancement to do the same stuff with less workers? So of course, they succeeded this time, helped by investment in excess capacity and inventory... But, as someone else pointed out: in a competitive market productivity does not affect profits as every company shares the same advantages. The advantage goes directly to consumer welfare through lower prices. OTOH strong US productivity gives the US economy a relative advantage to other economies if the other economies have some barriers that prevents them from sharing the more productive technologies. The question is only whether this is actually the case. I'd say technological progress knows no borders anymore. OTOH the efficiencies of the economic systems are country specific. All in all the new numbers are probably a non-event besides the interpretation that will be made up by the public one way or another... Regards PMG