An entire waste of time, likely to cause us financial harm.
WASHINGTON (Reuters) – The United States said on Tuesday it plans to negotiate an agreement with the European Union, Japan and 18 other economies to remove trade and investment barriers in services ranging from finance to express delivery.
Sigh, I’m continually astounded about the everlasting pursuit of the intangible. Yes, the service industry is an integral part of the US economy. But, it is our reliance on it that is causing us economic harm. Worse, there’s no point in it!
Services, by their very nature are transitory. They retain no value. That is to say, once the service is provided, it’s done. If I’m a cashier, I facilitate an exchange, and that’s it. It’s over. The value of my work is only in the one-time exchange. And, I don’t provide any more utility until the next time my services are needed. The same can be said if I’m a delivery boy or something. Once I’ve facilitated the exchange, it’s over.
Now, contrast the service industry with mining or logging. A miner mines coal or other metals. The sell their product to other people who combine the minerals and make steel. The take that product and build and make things with it, be it guns or cars or parts of homes and buildings, or appliances. All of these things hold value after the service industry is done. Even if the utility to the product, such as the auto or appliances has ended, the value of the steel remains and can be recycled. Much of the same can be stated about the logging industry. The cut the wood down and send it to a mill with further cuts the wood into manageable and workable pieces. This continues all the way down to the furniture store or into building homes. Many of these products hold value for longer than a century.
Industries which engage in creating tangible goods exponentially create more wealth and jobs than the service industry. Indeed, they create the need for the service industry.
A nation, so rich in resources, such as the US, should never concern themselves with the service industry. It detracts from the wealth creation potential of much more worthwhile ventures.
Worse …. from the article I see a horribly stupid quote. …..
“Every $1 billion in U.S. services exports supports an estimated 4,200 U.S. jobs in America,” U.S. Trade Representative Ron Kirk said in a letter notifying Congress of the U.S. plans to launch services talks. “If business services achieved the same export potential as manufactured goods globally, U.S. exports could increase by as much as $800 billion.”
No, Mr. Kirk, they cannot. A service, as an export, is only of value until the people utilizing the service realizes they can do the same except cheaper. Do we honestly believe we can “express deliver” to Japan better than Japan can deliver to Japan? How stupid is that? Money exchange? Good heavens! Look at our financial institutions! The incest is already so ingrained it’s impossible to say we can do better than them as nations because the financial institutions are already the same! That’s exceedingly stupid!
In the meantime, our mining industry is suffering. Our logging industry is no where near it’s potential. Our drilling, manufacturing, and milling are all below what they can be to create wealth, jobs and value. We can either put people back to work or be someone’s delivery boy. Apparently, the powers to be in the US have decided upon the latter.
You can read more here talking about how great this could be.
Ironically, in another article it has this to say…..
More working parents have taken jobs as cashiers, maids, waiters and other low-wage jobs in fast growing sectors that offer fewer hours and benefits, according to The Working Poor Project, a privately funded effort aimed at improving economic security for low-income families.
The result is 200,000 more such working families – the so-called “working poor” – emerged in 2011 than in 2010, according to the report, based on analysis of the most recent U.S. Census Bureau data.
About 10.4 million such families – or 47.5 million Americans – now live near poverty, defined as earning less than 200 percent of the official poverty rate, which is $22,811 for a family of four.
Emboldened are all service industry jobs. They’ve got a good percentage of us there now, and they intend to keep you there.