Which is "better" and why?
Converting capital from cash to an assembly line is better than spending cash on someone else's finished product, because when the purchased product is consumed you have nothing but the assembly line is an asset you own until it depreciates.
Some assets depreciate slowly, others faster.
Give someone a fish, feed him for a day. Teach someone to fish, feed him for life.
It's the same principle - in a service economy people have to rely on others for fish. In a capital economy people own the means to acquire their own fish.
The person who uses their own car for Uber or Lyft is in a capital economy,he can travel whenever he wants to wherever he wants. The person who consumes Uber or Lyft is at the mercy of the driver to be willing to drive the person where he wants to go, when he wants to go.
Capital economies control their own destiny, service economies eventually drain their resources through endless consumption.
-PJ