It struck me after posting the previous blog that someone will inevitably ask the data that underpins my optimism. The chart below hopefully helps (click to enlarge):
So, what "services" exactly are referred to in the graph?
And how is it that these "services" are actually creating real wealth? My understanding of a service is that you sell a service to someone with money. It's simplistic, but assuming it's true, then were is the "real money" coming from?
The services you have in mind are like transport, finance and insurance which represent broad dynamism in the economy and as sectors tend to add little.
There other services which are generally regarded as 'employers of last resort' category. These have been prime drivers, as they add direct value e.g. community and social services, real estate and business services, wholesale and retail sales.
I think it is telling that the main source of growth was 'GDP growth' (mining exports), not agriculture or manufacturing.
ReplyDeleteNo.
ReplyDeleteThe 'GDP growth' line at the bottom is the aggregate growth of the various growth rates in the sectors.
Sorry, I misread that. It has been a long day.
ReplyDeleteI thought so...it's unusuaal for you to miss a detail!
ReplyDeleteMust be the G20 and all neo-liberals there on your mind!
LOL!!
So, what "services" exactly are referred to in the graph?
ReplyDeleteAnd how is it that these "services" are actually creating real wealth? My understanding of a service is that you sell a service to someone with money. It's simplistic, but assuming it's true, then were is the "real money" coming from?
Zedian,
ReplyDeleteGood question!
The services you have in mind are like transport, finance and insurance which represent broad dynamism in the economy and as sectors tend to add little.
There other services which are generally regarded as 'employers of last resort' category. These have been prime drivers, as they add direct value e.g. community and social services, real estate and business services, wholesale and retail sales.