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To: Lizzie Tudor who wrote (177822)	1/19/2009 2:22:43 AM
From: Skeeter Bug	Respond to of 306849

>>Technology enabled a ton of productivity improvements that I myself witnessed,<< that is unit productivity which is very different than GDP productivity. i'm in the business of making production environments more efficient, so i understand where you are coming from. what you fail to realize is that this efficiency often made prices drop due to new ease of entry (think desktop publishing) and pricing pressure due to supply and demand issues. micron tech would routinely increase output 4x... but they would just lose more money and have little effect on GDP. unit productivity was astounding, GDP productivity was awful. the old calculations already took into account all the dollars produced by these new efficiencies... and there still wasn't enough dollars for greenspan. therefore, he created dollars out of literally nowhere. if the "new economy" and "productivity miracle" had created so many new dollars, they would have shown up under the old GDP calculation. they didn't simply b/c they didn't exist.