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A service-based economy is also a "real" economy and not a "paper" economy
by culi 7mo ago
A service-based economy is also a "real" economy and not a "paper" economy
- bumby 7mo agoI agree, depending on what services you’re speaking of. Although I don’t know that it meets the explicit aims of the heritage foundation (which was the OPs question).
- WarmWash 7mo agoThe fundamental problem is the asymmetry of value creation. Software is perhaps the pinnacle of this, and why tech companies are so unfathomably wealthy. A team of 10 SWEs can create a product worth $1B with the cost of 10 laptops. You get ten people worth $100M each. To create $1B in value with any kind of manufacturing business, is going to take hundreds of people utilizing millions in various costs. You end up with something like 10,000 people worth $100k each once you wind your way through all those supply lines.
- bumby 7mo agoYou said it better. I think the idea is that certain "paper" economies are disproportionately valued in the economy when the dollar is strong. A strong dollar leads to offshoring manufacturing, which leads to an over weighted "paper" economy, which leads to an eroding middle class.