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To: Steve Lee who wrote (16432)	3/7/2002 9:34:08 AM
From: Mike M2	Respond to of 74559

Steve, look at the Commerce Dept. They break it down into current and chain-weighted dollars. The gov't doesn't hide this fact the problem is the Wall St economists accept the number at face value. It is worth noting that to the extent you understate inflation you overstate GDP and productivity. Enron should be a sobering reminder of the dangers of accepting numbers at face value. It is also interesting to note that about a year ago software was considered an expense and as a result did not enter the GDP accounts ( Don't ask me why- I don't know perhaps David Stern can elaborate). I don't understand this so i cannot take a position on this issue but it should be obvious that the change creates stronger GDP growth when compared to prior periods. Once again Germany does not account for software this way. Mike