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So, let me get this straight, there is no value added from education?

Correct.

Value is not a tangible object.

Correct. Wealth is, at its most fundamental level.

Services that have value result in a transferrence of wealth.
However they do not ADD value, hence, they do not create wealth.

So the silversmith engraver that takes your $500.00 revolver, carves on it and charges you 300.00 for services which then makes the gun worth 1000.00 doesn't add wealth ??

Like Marx, you believe in the "labor theory of value," which does not believe anything is of value unless it involves producing some tangible product with physical human labor. But in a highly developed economy, capitalism tends toward less labor- and capital-intensive industries for the simple reason that labor- and capital-intensive industries tend to have much lower returns. This is why, among other things, Warren Buffett religiously avoids cash-consuming, asset-heavy industries in favor of "lighter" industries like financial services (the ultimate service industry), media, and consumer products. These are all businesses where in order to generate healthy returns, you don't have to spend a lot up-front on capital expenditures. According to Buffett, the worst kind of business is one where in order to generate $1 of additional profit, one needs to invest a proportional amount in capital expenditures. All asset-heavy manufacturing industries possess such unfavorable economics. On the other hand, the best kind of business is one where you can invest some small amount in the beginning and profits will grow forever into the future without the need for additional cash-consuming capital expenditures. Service industries inherently possess this characteristic. At the end of the day, it's just a matter of using as little cash as possible to generate big returns. Manufacturing industries require ongoing cash expenditures to increase their profits, but service industries do not.