Greenspan IQ query

Rakesh Bhandari bhandari at phoenix.Princeton.EDU
Fri Apr 7 10:18:24 PDT 2000

> Actually, though, Greenspan has been celebrating the efficiency of
> U.S. investment as compared to the EU's & Japan's - we invest less,
> but smarter, and make more profit. Outside IT, investment in this
> expansion has been quite low.

Doug, thought I was sort of agreeing with you. Isn't investment in additional plant and equipment--and even structures (though obviously less so)--just strong enough to push to the limit of the valorization base? Moreover, due to strong investment in IT given rapid depreciation of computers and semiconductors, this means sector has to be built up for expansion. This alone poses danger of worker shortage. Moreover if plants can't expand due to labor shortage and thus take on new IT equipment, this threatens idling of capacity in Dept I/IT in particular. Yours, Rakesh

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