William Anderson's logic is flawed. He mistaking confuses the concept of wealth creation, which by definition requires a physical change to a good to elevate it's value in the market, with the nonproductive concept of "flow" or wealth "transference".
The simple act of exchanging one good for another, barter or trade creates nothing. You can exchange the same goods back and forth all day long among thousands of people, for days, weeks, months, years, centuries and not create any wealth. Oh, some of the traders may be more shrewd than others and accumulate more wealth than others through the series of wealth transfers. But absolutely NO wealth is created UNLESS somebody engages in value-added activities to produce more goods.
William Anderson has proven himself to be a shill for politically motivated junk economics. His employment as an instructor at Frostburg State University should be terminated. And all his former students should file a class action lawsuit against him for professional malpractice.
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.WEALTH: The net ownership of material possessions and productive resources. In other words, the difference between physical and financial assets that you own and the liabilities that you owe. Wealth includes all of the tangible consumer stuff that you possess, like cars, houses, clothes, jewelry, etc.; any financial assets, like stocks, bonds, bank accounts, that you lay claim to; and your ownership of resources, including labor, capital, and natural resources. Of course, you must deduct any debts you owe.
VALUE ADDED: The increase in the value of a good at each stage of the production process. The value that's being increased is specifically the ability of a good to satisfy wants and needs either directly as a consumption good or indirectly as a capital good. A good that provides greater satisfaction has greater value. In essence, the whole purpose of production is to transform raw materials and natural resources that have relatively little value into goods and services that have greater value.
SERVICE: An activity that provides direct satisfaction of wants and needs without the production of a tangible product or good. Examples include information, entertainment, and education. This term good should be contrasted with the term good, which involves the satisfaction of wants and needs with tangible items. You're likely to see the plural combination of these two into a single phrase, "goods and services," to indicate the wide assortment of economic production from the economy's scarce resources.