Zeev's Turnips Patch-No Politics (ZEEV)

[Joe Stocks]

>>>I wonder how much of the "productivity miracle" so loved by Greenspan (and which sends Kudlow orgasmic) is due to the loss of low margin (productivity) manufacturing jobs and companies overseas while higher margin (productivity) service and software type jobs remain here.<<<

I've been attacking the "productivity" bandwagon for several years. Just doesn't make any sense for Greenspan and Kudlow to get so excited about that figure. I think a maojor chunk of those gains have come from shipping jobs overseas. If HPQ contracts all of their manufacturing out overseas, of course their productivity will increase substantually - same revenues...less employees.

Here's the kicker and what I fear down the road. One of these days China or some other country will decide that they can sell their own brands over here. They'll set their own distribution and service and the corporate profits will go overseas. Let's face it, brand loyalty is getting harder to secure as the margin of difference is less apparent in domestic owned and manufactured overseas and, foreign owned and manufactured overseas. I think we see this in DVD players today. The ads I see show all kinds of brands. I not much of a techie but I see very little brand loyality in DVD players.

Just a thought, Joe