[staytrue]

Service sector activities do not create wealth, they merely transfer, redistribute and eventually dissipate wealth as consumption

Completely wrong. What is the difference between a) fixing a broken car so it runs like new and b) taking steel and plastic and making a new car ? How about renovating an old house vs. manufacturing a new one ? If the US had better investment advisors (service) they would not have wasted trillions of dollars building (manufacturing) telecom plants and facilities and internet and wireless infrastructures. Here services were more important than manufacturing because the services could have saved trillions, the manufacturing and building wasted trillions. Services are just as important as manufacturing.

[Principled]

William Green has some odd ideas about economics.

[Willie Green]

What is the difference between a) fixing a broken car so it runs like new and b) taking steel and plastic and making a new car ? How about renovating an old house vs. manufacturing a new one ?

All are examples of value-added activities, not services. Repairs/renovations do add-value and create wealth, albeit not as much as new manufacturing/construction. Essentially, they restore wealth that had been allowed to deteriorate/depreciate in value.

[FITZ]

Services are just as important as manufacturing.

Then why did Mexico want the maquilas and China wants them now? Why don't they just do services?