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To: Bearded One who wrote (24483)	12/8/1997 5:22:00 PM
From: Chuzzlewit	Read Replies (4) \| Respond to of 176388

I stand by what I said. Focusing on one wage and jobs report and extrapolating it to the year is bad enough. Extrapolating economic trends from one set of data is frought with peril. Jumping to sweeping economic conclusions wage regarding inflation without taking into account the increase in productivity or the underlying actual inflation rate is the height of folly. The fact is that real wage increases have significantly lagged increases in corporate profits. The other fact is that when productivity increases (as it has), the impact of increased wages on the bottom line may be negligable. The second point is that when I said there was a cost to businesses in deferring purchases, that had to do with the use of the equipment. If a carpenter defers buying a hammer he may well defer the revenue generated by building a house! And since the cost of computers is always dropping, why would anyone ever buy one? Finally. your "simple possibility" relies on steep demand curves, otherwise the conclusion couldn't come to pass. Regards, Paul