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To: Willie Green; AIG; Centurion2000
Wealth is created only by engaging in value-added activities. By the same token, Service sector activities do not create wealth, they merely transfer, redistribute and eventually dissipate wealth as consumption. Thus, as value-added activities move offshore and the U.S. labor force shifts to the Service Sector, wealth is dissipated, not created. And the U.S. standard of living declines as a result.

Willie this is your best post ever. I'm curious, how does wealth get dissipated?

These service sector people buy tangible goods, don't they? The income they receive for producing the services you disparage doesn't get placed under their mattress, does it?

How about the saintly U.S. autoworker who makes good old American cars with American steel? When he takes his paycheck and hires a babysitter for his kids so he can go to the movies with his wife, is that money he paid dissipated?

If the babysitter takes the money she earns and buys a car that the automaker built, is the wealth suddenly undissipated?

77 posted on 07/30/2002 5:57:11 PM PDT by Toddsterpatriot
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To: Toddsterpatriot
Willie this is your best post ever. I'm curious, how does wealth get dissipated?

Big ticket items, homes, cars, durable goods, machinery, etc. etc. eventually fall into disrepair or otherwise deteriorate to the point they no longer have market value.
Consumer goods have appreciably lower economic life spans.
Perishable goods (food) and disposable items dissipate wealth most rapidly.

Of course, I'm explaining this in terms of personal items that constitute most people's personal wealth. But the same principle holds true for large items owned by businesses and/or government: Buildings, machinery, roads, bridges, etc. etc. etc all eventually degrade (both physically and in value)-- and wealth is dissipated.

88 posted on 07/30/2002 6:53:37 PM PDT by Willie Green
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