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Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: JRI who wrote (21272)	11/16/2001 9:02:27 AM
From: Perspective	Respond to of 209892

I think there is no doubt that there were some substantial productivity increases thanks to the tech boom. However, one should realize that they only improve our quality of life, not stock market valuations. Assuming the gains happen equally at competing corporations, the real rates of return on investment will always seek a rate marginally above risk-free rates of return. As for quantifying the gains, 90% of the hedonic pricing is BS. Technological progress should not be included in GDP gains. Clearly cost increases due to feature additions (ie air bags on cars) must be accounted for, but a CPU is a CPU is a CPU from an economic standpoint, and hedonic pricing just makes it all the more difficult to draw reasonable economic conclusions from government data. BC