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This was an excellent addition.
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Postings not related to the writing of the Manifesto or policy chapters
are likely to be summarily rejected. Thanks for your understanding. IPI
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Dear Puneet,
Just came across this reply of Prof. Guptara. I think his views are
excellent and complement what I had said. Hope you are now perfectly
clear about the issue in question. Sanjeev
On Sun, 10 Jan 1999 prabhu.guptara@ny.ubs.com wrote:
> SEveral things drive stock prices, INCLUDING expectations of future
> earnings yes, but also demand for stock (not always related, witness
> technology stocks and Amazon.com etc at present), and so on.
>
> However, Equity prices cannot in the long run rise much faster than
> corporate profits and the latter cannot forever rise faster than the
> national income.
>
> This is why it is unwise to consider expenditure on education and on
> welfare simply as a negative. Education might more properly be
> consider an enabler of future earnings, and welfare is best thought of
> as an insurance premium against anti-economic acts such as theft,
> vandalism, violence, smuggling, drug-taking and so on. These are not
> only harmful in themselves but also vitiate the whole environment in
> which productive economic activity takes place.
>
>
> Professor Prabhu Guptara
> Director, Executive and Organisational Development
> Wolfsberg Executive Development Centre
> (a subsidiary of UBS AG)
> CH-8272 Ermatingen
> Switzerland
> Tel: +41.71.663.5605
> Fax: +41.71.663.5594
> e-mail: prabhu.guptara@ubs.com
> INTERNET: http://www.wolfsberg.com
>
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