Is Service Economy Good For America?

Lets shine a pleasant light on an ever-present negative view of American transformation into a service economy, and focus on a real problem that currently ails America. Transformational service expanding economy is the correct and arguably the only path America is destined to follow for many decades and many different reasons. In fact service growth and disposable goods should be used as a measure of economic progress for the top economies in the economic food chain.

It’s hard to stop a loaded train. Even if the train is loaded with feathers, there is still a massive force to recon with. Placing a value on a type of goods and services misses the point of a pound of feathers having exactly the same weight as a pound of steel.

A primary designation of the monetary instruments in an economy is to facilitate an orderly exchange of goods or services. Each time some entity accepts a monetary payment for something substantive the provider of monetary payment mostly wins. In a case of trade deficit with other nations the larger the trade deficits gets, the more America wins. A deficit or the difference between imports and exports is balanced with a monetary payment. This monetary payment is exchanged for something substantive to our internal economy. And as long as others will continue to accept this monetary payment, getting something in exchange for paper notes is really a sweet deal.

Keeping others accepting US currency is where key policy decisions must be focused. Faith in US currency is arguably entirely dependent on the health of US economy. Therefore any policy direction that undermines the health of US economy will undermine purchasing power and influence of US on a global playground. If we simply look at an economy having some optimal “health” what if the “symptoms” were misdiagnosed and the “medicine” prescribed is hindering this economic recovery back to “health”.

The truth be told it is not the type of economic activity; it is the correct direction of policy or “medicine” prescribed that will move America into an economic expansion together with health and faith in US currency. Return to prosperity is self-evident when you focus on the underlying economic structural foundation and not on “symptoms”. Only pro-business and pro-private sector policies can start the nursing of economy back to health. Run away from anyone telling you anything else. As this article is written America is already starting to interview new and better qualified train engineers, and soon adding more coal to the furnace will follow.