Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (16583)	3/8/2002 1:29:40 AM
From: Raymond Duray	Read Replies (1) \| Respond to of 74559

Re: I fail to see why everyone is carried away with this 'productivity' thing. Alas, it's not you who is failing to see. <g> Could it really be that a simplistic nation would fall for the grand utterances of the economic priests without reflection or comprehension? Barnum knew the answer. -R.

To: LLCF who wrote (16583)	3/8/2002 8:25:44 AM
From: Ilaine	Read Replies (1) \| Respond to of 74559

>>Productivity increased during the depression too... so what??<< If you don't mind a lecture, the Great Depression bottomed in early 1933, and the economy started marching up at a rapid clip. It was a very sharp v-bottom. The problem was that the decline was very steep, so there was a long way to go. And of course different industries had different recoveries. In fact, it's usual for productivity to increase during recessions and depressions, as industries innovate to produce more at a lower cost. But of course, as Don has pointed out repeatedly, an increase in productivity doesn't necessarily mean an increase in GDP. If a technological advance makes an industry easier to enter, then there is more competition which usually means lower prices, maybe lower profitability. Good for the consumer, maybe not that great for the producers. Although being more efficient usually translates into surviving, which is good.