Three-sector hypothesis - Wikipedia, the free encyclopedia

(Yeah, I know, Wiki sucks, but it's a good enough intro for this topic...)

According to this theory, America has been moving into a teritary sector, meaning we no longer create wealth (manufacturing raw materials into products, thereby adding value)...going to an almost entirely service based economy.

Much of our economy is predicated on passing money around and taking X cut. We're busy allowing/making what little manufacturing we have outsource to other countries, possibly exporting our lifeblood.

On a sidewalk I use almost every workday, I see a manhole cover that is Made In Mexico. My thought is, we can't even manufacture a basic, steel disc anymore? I've seen plastic US flags that are made in China. Where is this going? If it's cheaper to import than to build, why bother making anything?

So, my question, for discussion is, at some point, will we move to a purely service based economy? Is that even desireable? Howwill we create wealth, or should we simply position ourselves to own the "rights" to reap the profits of manufacturing nations?

Where do you see this trend leading?

__________________
Memo to DC:
Quit screwing around and get it done, I don't care whose idea it was.
Right and wrong are obvious, as are ethics.
Do what we've hired you to do and lead.
Shut up and fix things. Now.

Here is an example of the problem. GMC just closed four plants. All four represented outsourcing. All four plants were producing gas guzzler trucks.

I remember when Toyota and Honda came on to the American car market. All the US automakers were committed to gas guzzlers and got their butts kicked by Honda and Toyota.

You would think that our automakers would learn in the course of a couple of decades about getting their butts kicked.

It's different for different products. The reason for not making that manhole cover is becuase, that would take manpower to do it (I don't know how many men, but for the sake of argument, let's say 3). It is more effeicent for those 3 men to buy a manhole cover from Mexico and to spend their time doing something else, than for them to make it themselves.

__________________
Set your destination with your heart, get there with your mind.

"The wisest men follow their own direction." - Euripides

We are a nation of consumers, not producers. We will continue to consume more and more, produce less and less and try to find ways to create "jobs" for people to do just so that we can maintain an unemployment level of less than 10 percent. All the while, we will be hostage to producer nations like China and India.

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A panda walks into a cafe. He orders a sandwich, eats it, then draws a gun and fires two shots in the air.

"Why?" asks the confused waiter, as the panda makes toward the exit. The panda produces a badly punctuated wildlife manual and tosses it over his shoulder.

"I'm a panda," he says at the door. "Look it up."

The waiter turns to the relevant entry and, sure enough, finds an explanation.

"Panda. Large black-and-white bear-like mammal, native to China. Eats, shoots and leaves."

We produce plenty, none of the money stays here though because companies incorporated here are inefficient dinosaurs protected by the government.

Glock primarily builds its US assortment in Atlanta, GA.
Honda builds all of their "Shadow" line in either Illinois or Indiana
Toyota builds its Tundras in Texas and Oklahoma.

It's not too expensive to build here, our companies are just terribly managed. The Japanese use American labor to build the finest cars known to man, at a reasonable price. It's not Americans, its corporate America. Let them fail and encourage Toyota to incorporate here. Strongest survive.

Oh, and get rid of our nanny-state protections. You don't deserve $50k to stand on an assembly line.

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"Timid men prefer the calm of despotism to the tempestuous sea of liberty." - Thomas Jefferson

"Truth is treason in the empire of lies." - Ron Paul

Ttrue, and that's basic econ theory, yes. But, it makes me wonder where the wheel stops, at what point do we/should we/will we simply not bother to make anything here anymore, and become a purely service economy?

And, is that what we want? I have no idea.

__________________
Memo to DC:
Quit screwing around and get it done, I don't care whose idea it was.
Right and wrong are obvious, as are ethics.
Do what we've hired you to do and lead.
Shut up and fix things. Now.

At the point when machines can do it. You can have a fleet of 100% robotic tractors take care of thousands of acres of farm land with no human help. We now have much of the cars are made by machine, the human input is getting smaller and smaller, so they move on to do something else, services. Eventually, we'll get to a state where people will only need to work 10 hours a day to get all their needs.

__________________
Set your destination with your heart, get there with your mind.

"The wisest men follow their own direction." - Euripides

I hope you meant "week". 10 hours a day would suck. I only work a standard eight.

__________________
Memo to DC:
Quit screwing around and get it done, I don't care whose idea it was.
Right and wrong are obvious, as are ethics.
Do what we've hired you to do and lead.
Shut up and fix things. Now.

sorry, yes, week. the world's production:consumption will get better and better thanks to machines and technology and eventually allow everyone to have a well taken care of life and so we can cut down on the pruduction (by working less) and just enjoy life, as a world...sorry, I just woke up. What are we talking about?

__________________
Set your destination with your heart, get there with your mind.

"The wisest men follow their own direction." - Euripides

we didn't used to be... we used to make all our products and we looked down upon products made in other countries... do you remember when made in japan had the same connotation as made in china has today?

__________________
I cannot teach anybody anything, I can only make them think.
~~Socrates

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