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This was an excellent addition.

Postings not related to the writing of the Manifesto or policy chapters
are likely to be summarily rejected. Thanks for your understanding. IPI
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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