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I heard on the radio ( BBC 5 live ) yesterday that the UK service sector now accounts for 80% of our economy, with everything else accounting for 20% ( i.e. manufacturing ). They went on to say the service sector is growing but the other 20% was not ( i.e. in recession ).

I expect banking, accountancy, estate agents, travel agents, mortgage agents, football agents, solitcitors, coffee shops, public sector etc are all service sector.

The service sector to me is something that lives off the productive part of the economy...i.e. the manufacturing building etc.

The service sector should be, in effect, re-cycling the wealth created by others.

It's not hard to see how printing money, creating debt and immigration can expand this sector and hence keep the GDP figures up

However, for this to be growing and everything else imploding means we must all be getting worse off so we will be in for one hell of a collapse at some point.

Surely the increase in GDP because the service sector has grown is actually a bad thing.

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I heard on the radio ( BBC 5 live ) yesterday that the UK service sector now accounts for 80% of our economy, with everything else accounting for 20% ( i.e. manufacturing ). They went on to say the service sector is growing but the other 20% was not ( i.e. in recession ).

I expect banking, accountancy, estate agents, travel agents, mortgage agents, football agents, solitcitors, coffee shops, public sector etc are all service sector.

The service sector to me is something that lives off the productive part of the economy...i.e. the manufacturing building etc.

The service sector should be, in effect, re-cycling the wealth created by others.

It's not hard to see how printing money, creating debt and immigration can expand this sector and hence keep the GDP figures up

However, for this to be growing and everything else imploding means we must all be getting worse off so we will be in for one hell of a collapse at some point.

Surely the increase in GDP because the service sector has grown is actually a bad thing.

The rest is something like 12% manufacturing, 7% construction, 1% agriculture i think.

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There is no rebalancing.

The only plan - or hope - by the politicians is for the banks to no longer be bankrupt and hence for the same all merry go round of banks doing what they do to keep the UK economy going.

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Douglas Adams had the right idea in Restaurant at the End of the Universe, where all the agents and middle men were packed off into space on the proviso the world was about to end (it wasn't), thus leaving the planet for all the worthwhile human beings!

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The most obvious benficiaries of the rolling ZIRP bailout are those involved with financial services. The QE cash is paid directly into their accounts and they are free to speculate with it in any way they deem profitable. Since everybody else is being taxed to provide them with this exorbitant privelege, Osborne can legitimately be said to have rebalanced the economy - though certainly not in the way he advertised.

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One can imagine a world in which, through automation etc., most of the wealth is produced by a tiny fraction of the population (as agriculture now functions.)

More or less everyone would then be in the 'service' sector.

What money system would best facilitate a fair and stable distribution and consumption of such abundant wealth?

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One can imagine a world in which, through automation etc., most of the wealth is produced by a tiny fraction of the population (as agriculture now functions.)

More or less everyone would then be in the 'service' sector.

What money system would best facilitate a fair and stable distribution and consumption of such abundant wealth?

Money simply enables the transfer of value. It always allows markets to value different goods and provide a medium of exchange. The elite class need the "service" sector that is why bankers, accountants, lawyers exist. People who believe it a fair world probably don't understand how these activities can be more wealth generating that say, food production or manufacturing but that's because they are not in the elite class. There are only two classes elite and everyone else. That is how human history has always existed. The elite employ capital and use labour to generate more capital. They use lawyers,accountants and bankers to make this happen so these jobs are always more valuable than "real goods". The "everyone else" class will produce food and water. heat and light and the elite can simply buy it with capital. Its aways around because everyone needs it - but if it is scarce the elite can buy it as they have more capital than the other class.

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Douglas Adams had the right idea in Restaurant at the End of the Universe, where all the agents and middle men were packed off into space on the proviso the world was about to end (it wasn't), thus leaving the planet for all the worthwhile human beings!

Who then landed on an earth like planet and decided to make the leaf legal tender, making them all enormously wealthy. Unfortunately that led to an inflation problem they sought to resolve by burning all the forests down.

I don't think he intended any central bankers to read it and be inspired.

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Douglas Adams had the right idea in Restaurant at the End of the Universe, where all the agents and middle men were packed off into space on the proviso the world was about to end (it wasn't), thus leaving the planet for all the worthwhile human beings!

But the other 2/3rds were wiped out by a virus from unclean phones because a ll the telephone sanitisers were packed off in the ship...:)

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Money simply enables the transfer of value. It always allows markets to value different goods and provide a medium of exchange. The elite class need the "service" sector that is why bankers, accountants, lawyers exist. People who believe it a fair world probably don't understand how these activities can be more wealth generating that say, food production or manufacturing but that's because they are not in the elite class. There are only two classes elite and everyone else. That is how human history has always existed. The elite employ capital and use labour to generate more capital. They use lawyers,accountants and bankers to make this happen so these jobs are always more valuable than "real goods". The "everyone else" class will produce food and water. heat and light and the elite can simply buy it with capital. Its aways around because everyone needs it - but if it is scarce the elite can buy it as they have more capital than the other class.

And let not forget the the public sector which make up a good chunk of this 80% of 'services'.

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_sector_composition

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The service sector- or a big chunk of it- is sitting in the cross hairs of the next generation of automation and computing- so many of these jobs seem to involve shuffling data- it's hard to see how they will for much longer be able to hold the line against technology.

Anyone who manipulates symbols in a routine fashion for a living is not in a good place in my opinion- the top end will be ok- but the more routine stuff is gong to be automated or at least de-skilled to the point where it won't pay very much.

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Money simply enables the transfer of value. It always allows markets to value different goods and provide a medium of exchange. The elite class need the "service" sector that is why bankers, accountants, lawyers exist. People who believe it a fair world probably don't understand how these activities can be more wealth generating that say, food production or manufacturing but that's because they are not in the elite class. There are only two classes elite and everyone else. That is how human history has always existed. The elite employ capital and use labour to generate more capital. They use lawyers,accountants and bankers to make this happen so these jobs are always more valuable than "real goods". The "everyone else" class will produce food and water. heat and light and the elite can simply buy it with capital. Its aways around because everyone needs it - but if it is scarce the elite can buy it as they have more capital than the other class.

The problem is there's real money and bank credit and the two are essentially mingled but spent with different perceptions. For example, people spend £250k of bank credit willy nilly on a house but baulk at much smaller spending of real money earned in a job that they can contextualise.

Out in the real world, if you take manufactured goods being sold at double the cost of manufacture, you would probably need to sell £1.5 millions worth, once you take off vat, tax on profit and other costs of sales to be left with enough profit to cover the £250k house cost. If the goods were things to be sold in a £1 shop you'd need 1.5 million items. Yep, you'd need to shift an enormous, vast warehouse filling pile of 1.5 million items to pay for every tiny slave box house that's been built. Which puts into context how stuffed the country is.

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The service sector- or a big chunk of it- is sitting in the cross hairs of the next generation of automation and computing- so many of these jobs seem to involve shuffling data- it's hard to see how they will for much longer be able to hold the line against technology.

Anyone who manipulates symbols in a routine fashion for a living is not in a good place in my opinion- the top end will be ok- but the more routine stuff is gong to be automated or at least de-skilled to the point where it won't pay very much.

I'm sure that things are being deliberately held back to keep these jobs going but they look increasingly absurd. Take vat invoicing for many SMEs, one person sat at a computer connected to the internet produces an invoice and prints it out and posts it. The person the other end also sat at a computer connected to the internet opens it and types it into the computer. Utter madness.

Oddly change can be very slow to start but catch you unaware by it's speed. Back in 2007/08 plenty of people were commenting on digital downloads being big and impacting CD sales but no-one was saying there wouldn't be a single bricks and mortar music retailer left in less than five years.

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  • 243 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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