I’m all aboiut brains versus brawn but I see more and more of the service economy developing as parasitical on the wealth producing segments. How many consultants do we really need to explain the latest (insert various government agency) regulations to business owners anyway? As a manaufacturer I’m bombarded with people trying to sell me their “services” that often aren’t worth the time spent telling them to get lost. I get bombarded by “experts” wanting to show me how to win business from the government. Having done so for a long time I question their means and methods. When I point out that, even in DOD procurements often the pricing on items manufactured are awarded at costs below the price of the raw materials required to make the part leading one to beleive that such items are being likely made in the subsidized “loss leader” mentality that is countries such as China I get begrudging agreement that “well maybe the prices aren’t profitable but let me show you how to win anyway…”.

So much nonsense – so little value.
Think for a minute how much value the financial services industry has provided this great economy of ours in, say, the last eight years? How many of those people will be able to find meaningful work when all they know is shilling the corporate greed line handed down by the “wise young men” from wall street offering nothing but hype and short term thinking? of course those firms fees are made on the transaction whether ultimately successful or not.

The balance has shifted too far methinks.

We need to get back to creating wealth by application of an honest day’s labor for a honest day’s return. A service econmy has to have a wealth creation one to service. That is our challenge I think.

The goods-producing sector fell from 23.619 million in Jan 1997 to 22.324 million in Sept 2007, while the service-producing sector saw employment rise from 97.613 million in Jan 1997 to 115.914 million. (BLS.gov)

To quote Ronald Reagan “Government is NOT the solution to the problem. Government IS the problem.”

I agree with OldT6, we still have a manufacturing sector, but it is shrinking even as it adds to the net GDP as an incresing percentage, at least to this point. We would be much further along, however, if government wasn’t such a leach making it increasingly more difficult to operate.

Basically, Congress and the left has made it more difficult to operate though labor legislation that tilts the playing field steeply towards the unions, and toward the ecomaniacs.

there is a term that applies to a country that does not make what it needs – third world country. A service economy creates no wealth, although it certainly expends it.