"Service economy". Does that mean the private sector consists of fast food and gov't employees are customers?

Question

I mean, "service economy" suggests that manufacturing plays a minor role, or none at all.

If nothing is being produced, and all the private sector is doing is flippin' burgers and painting fingernails, who does that leave as the customer?

Since over one half of the population of the US derive their income from the taxpayer, doesn't that mean that government employees are the customers and the private exists soleley to "service" them?

Labor unions and nanny government agencies have successfully gound manufacturing in this country to a standstill. All that's left is car washes and service stations (pumping oil from purchased from our enemies in the middle east).

Our money isn't earned from tangible things produced by industrious people anymore, it's printed by the federal reserve board and pumped into the banks to loan to us on the equity on our homes.

It's all smoke and mirrors, folks!

Answer 1

Manufacturing creates wealth.
Service redistributes wealth.
I'll take the former if we ever stop taking advantage the third world and get it back again.

Answer 2

No, of course not.

A "service economy" relies on the sale and purchase of goods and services, as opposed to a "manufacturing economy", which relies on the production of those goods and services (there are other types of economies, but these two are the major ones).

In other words, a "service economy" provides "services", and a "manufacturing economy" provides materials.

After the devastation wreaked by World War 2, most of Europe and Asia was left without major industry. They relied on the US to provide them with goods, so, the US was a strong manufacturing economy, which spurred the growth of the US, which strengthened the US's position in the world economy, which, therefore, had a ripple-effect in terms of politics, etc.

However, over the past decade or so, the US has become more of a service-based economy, where goods and services are produced outside the US, because labor and production costs are cheaper there, and then the goods are brought into the US for sale. Thus, the US is now a "service economy", with China taking the lead in manufacturing (which is unfortunate, given the current headlines over inferior, if not deadly, products coming from China . . . but, I digress . . .).

Nations engaged in manufacturing tend to be stronger than those engaged in services, per the above explanations. Thus, a service economy will, eventually, lead to a trade deficit against the manufacturing economy.

You just received the equivalent of a week's worth of college-level economics, sociology, and political science classes. Please remit tuition to the bursar's office. Thank you. ;)

Answer 3

Your question is a little difficult to understand, but I assume you are trying to belittle a service economy.

Why is it that when people hear service economy, they immediately think of McDonald's? Surely they can grasp the fact that service positions are of a much larger variety than that.

Consider what a service job really means: non-manufacturing. This includes bankers, lawyers, doctors, business professionals, nurses, stock brokers, analysts, salesmen, financial planners, etc, in addition to janitors and burger flippers.

Now consider the amount of education required for manufacturing jobs: typically a high school diploma. Now consider that many of these once labor intensive jobs have been reduced to the pushing of a button, thanks to the innovations of the "service job guys" upstairs. Do you really want to go back to a time of hand-assembly, when a machine can do it more quickly, at a lower cost, with a smaller chance for error?

Also, many service jobs require college degrees and advanced training.

You tell me. Would you rather have an economy made up of low skilled manufacturers, or an economy comprised of more educated service employees?

Answer 4

I was an air conditioning mechanic which is considered a part of the service economy..I provided a service and people were happy to pay for it..especially in the summer

Answer 5

Your English grammar is less than perfect. Fast food is a service and a products business. Government is supposed to be a service business. Most employees in government entertain themselves by giving you the business.

Answer 6

Service economy also includes things like computer programs,

Microsoft is part of the service economy.

Lawyers are part of the service economy.

Tourism is part of the service economy.

Port and dock workers are part of the service economy.

Salemen are part of a service economy.

Health care is part of the service economy.

Plumbers are part of the service economy.

You tried to define service economy way to narrowly.

Answer 7

Do socialists eat fast food? I thought they were Birkenstock-wearing, Volvo-driving vegans who only eat "organic" food.

Answer 8

yes.
service economy - we sell hamburgers to people who sell hamburgers to people who sell hamburgers.