THE WELCH COMPANY
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S U M M A R Y


DIARY: June 5, 2001 02:45 PM Tuesday; Rod Welch

Weak economy, productivity falls, labor costs rise the most since 1990.

1...Summary/Objective
2...Connecting the Dots...... Demand for Knowledge Management


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CONTACTS 

SUBJECTS
Recession Reduced Earnings Stock Prices Decimated
Fed Expected to Lower Interest Rates to Avoid Recession Which Increas
Productivity Needed Avoid Inflation as Fed Increases Money Supply Low
Standard of Living Depends on Rising Productivity
Labor Costs Rise Highest Since 1990 Productivity Declines Fears of In
Manufacturing Sector Productivity Earnings Sales Decline
Too Many People Having Too Many Problems Earnings Fall Because Produc

4709 -    ..
4710 - Summary/Objective
4711 -
471101 - Follow up ref SDS 98 0000, ref SDS 90 0000.
471102 -
471103 - Reuters article today reports weakness of US economy, ref OF 15 0001,
471104 - is caused by labor costs rising at a 6.3% annual rate, which, if not
471105 - offset by gains on productivity causes inflation. ref OF 15 009N
471106 - Activity slowing in both manufacturing, ref OF 15 00AT, and service
471107 - sectors. ref OF 15 TG4J
471108 -
471109 - Productivity is falling faster than at any time in the past 8 years.
471110 - ref OF 15 007K
471111 -
471112 -      Productivity measures the amount of goods and services workers
471113 -      produce per hour and is crucial to rising living standards.
471114 -
471115 -      When workers' productivity grows, companies can produce more
471116 -      while holding down costs. The first-quarter decline in
471117 -      productivity was the steepest falloff since a 5.0 percent slump
471118 -      during the first three months of 1993. ref OF 15 IG9L
471119 -
471120 -      "You just can't see those kind of wage increases without
471121 -      productivity and not see it reflected in the price of goods and
471122 -      services later on." ref OF 15 7J5F
471123 -
471124 -      With activity slowing in the manufacturing sector and elsewhere,
471125 -      productivity falling and costs rising, businesses are being
471126 -      forced to cut spending and lay off workers as profits are being
471127 -      squeezed. ref OF 15 01EW
471128 -
471129 - Federal reserve is attempting to strengthen the economy by lowering
471130 - interest rates in hopes of fostering economic growth, ref OF 15 X44N
471131 - however, the potential for inflation implied by rising labor costs
471132 - argues for a more cautious approach. ref OF 15 W76F
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SUBJECTS
Connecting Dots Utopia Solves Too Many Problems Falling Productivity,
Connecting Dots Technology to Improve Management Productivity Earning

5105 -
510501 -  ..
510502 - Connecting the Dots...... Demand for Knowledge Management
510503 -
510504 - Follow up ref SDS 98 MZ7G, ref SDS 90 MZ7G.
510505 -
510506 - This record seems to further support analysis on 001207, ref SDS 89
510507 - MZ7G, later on 001221, and again on 000507 showing that technology
510508 - must improve competence, reviewed on 001114, ref SDS 85 SU3L, by
510509 - lifting the capacity to think, remember and communicate, set out in
510510 - POIMS, ref OF 4 3742, because competence capturing and using
510511 - organizational memory, reviewed on 010420, ref SDS 94 IE4M, improves
510512 - productivity and earnings by converting information overload, into a
510513 - "utopia" of productivity, earnings and stock prices, cited by Morris
510514 - on 010425. ref SDS 95 EP7F
510515 -
510516 -    [On 010623 big problmes people have is communication because there
510517 -    is no organizational memory. ref SDS 99 LY9K
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