Wednesday, April 25, 2012

Service Economy

  I am constantly being told by those smarter than me that the country is now a service nation and manufacturing and factories are discouraged while they are being turned into housing for the older population.
Bank of England officials have raised doubts over the GDP data, arguing they may underestimate construction activity.
“Commentators will be quick to question these numbers, and in particular the construction data. However, the final published numbers from the ONS on construction are much more reasonable than had been feared by economists, and so the real disappointment has been the service sector,” Zangana said.
The ONS said construction activity shrank 3% in the first quarter, while industrial output declined 0.4%. Services output eked out growth of just 0.1%.
Howard Archer, chief U.K. economist at IHS Global Insight, said he was skeptical of the data, particularly the “highly questionable” fall in construction output, which was responsible for shaving 0.2 percentage point from GDP. The data is at odds with survey evidence, he said, while mild weather should have helped construction activity.
 Many other steps can be taken to help the American economy, especially by limiting the growth of entitlements and the federal budget. None of the steps to improve the economy involve favoring manufacturing employment and the manufacturing sector. The call by many for special treatment of manufacturing jobs is basically misguided.

I lived it and was part of it.  It is a fact that manufacturing supports many other fields and businesses to name a few:
dinners, electrical contractors, plumbers, gas stations, cleaning services, not to mention tax revenue that supports the community.  What is taking the place, colleges and working from one's home?  Road construction is fine but it ends.  Education is fine but it ends and we have no where for the educated to find employment but the long term debt of the over priced education still remains (until we also allow the government to pay for that too).
Service industry is fine, when was the last time you had the experience of getting an order done right and what did it cost and how much does the job pay?  All I know is that when industry leaves so do other jobs not supported by the government.  Private industry! Let's make something and allow people who want to work find good paying jobs even if those are to be found in a factory.    

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