Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Many of the new tech companies are subsidized by investment. But lets look at the ones that make a profit.
Amazon/Apple sell products made in China, so they don't count.
Microsoft makes money off their cloud software which provides a service to other businesses, but that assumes we have other businesses that are productive.
Sales of software entertainment (Streaming services) rely on consumer payment.
Facebook makes money off of ads from companies that do sell products.
So where does this money all come from? It is completely circular in nature.
Service sector > Business > Consumer > Service sector ad infinitum
Actual economic value comes from productivity that allows these ancillary forces to exist.
Making them central to your economy sets you up for failure.
We're not an agrarian society living off the gold standard. Anyone trying to sell the service economy as some kind of "fake" economy should be lumped in with the guys who tell you that gold is going to keep it's value if the world economy crashed.
"Today, the average U.S. farmer feeds 155 people. In 1960, a farmer fed just 26 people."
That's got nothing to do with Trump versus Biden, but this does: Today, more Midwest farmer are subsidized by the U.S. government because of Trump's China policies.
Otherwise called Socialism.
But in this case, we can add bribery. Trump redistributed taxpayer funds to buy votes. And according to some farmers--it worked. They think he cares because after he destroyed their income he paid them with our money.
We're not an agrarian society living off the gold standard. Anyone trying to sell the service economy as some kind of "fake" economy should be lumped in with the guys who tell you that gold is going to keep it's value if the world economy crashed.
Not all service sector is 'fake', but the segment that looks to replace productivity is.
Look at China, our economists spent the greater half of the last decade saying China was excited to transition to a service sector economy like the US.
But China has their made-in-china initiative to boost knowledge in semiconductors so they are no longer reliant on US companies.
Germany has a massive service sector economy, but even they have specialized technicians who play an important role in the EU.
Total GDP isn't as important as being self-sufficient, elsewise every stock market crash will devastate society.
Anti-monopolization, anti-financialization, local supply chains, and technical education (that is rapidly leaving America) is necessary to forming a stable economy.
Again, your adament denial of it is the only thing false. Very few manufacturing or produced goods could survive year after year of non profits. Most tech companies are propped up by investors. Id be interested to see where all the money is coming from.
None of your links back up your absurd and patently false statement.
Those links say that:
1. Tech startups are sometimes not expected to be immediately profitable to get money from investors (true)
2. One lists 14 tech companies that are not profitable (true)
3. There do exist tech companies that are worth billions and are still not profitable (true)
The assertion that MOST tech companies are not profitable is still completely false.
Most companies that are not profitable go out of business before too long.
We're not an agrarian society living off the gold standard. Anyone trying to sell the service economy as some kind of "fake" economy should be lumped in with the guys who tell you that gold is going to keep it's value if the world economy crashed.
They are pointing out reality - and so are you. Generally speaking, the service economy does not produce - it serves. All of these tech companies have lowered the cost of doing business by putting other businesses out of business. For their global win - many locally have lost. The middle class has been destroyed.
Who owns and runs these tech companies? Mainly democrats. What states are seeing the greatest exodus? Blue states.
Quote:
Most companies that are not profitable go out of business before too long.
You are being given the gift of education by the poster you are responding to. You can argue all you want but eventually you will come to understand they are right. You will have to learn that lesson for yourself - perhaps the hard way.
Many new companies in all sectors are subsidized by investment until they can turn a profit.
Not true in general.
Usually a business would take out a loan to build up production until they turned a profit.
Now the model is about long term financial loss subsidized by investors (who do not provide loans, the former requires collateral).
I don't like the concept of taking out loans, but Silicon valley has totally recreated the wheel, look at WeWorks for an example.
These 'small businesses' are meant to scale, meaning if they don't become big, the fail.
Small business are typically part of a local supply chain that provide economic value to a region.
Tech start ups are sponges for investors and advertisers, but don't themselves build a productive infrastructure.
If you want a society that is productive and stable, you need small businesses. Tech start-ups are not traditional small businesses, they are just potential unicorns (billion dollar giants) that eventually pop.
Innovation is moving towards east Asia, we are falling behind in that category.
The reason why is because east Asia (China) has most of the industrial capacity so they work closer with the technology.
In a few decades, we will have fallen behind.
Service sector jobs are not naturally stable in total isolation. They are meant to supplement a productive economy, not to be the heart and soul of the job sector.
This is just completely wrong. Yes, innovation is spreading across the globe, but the US is still the innovation leader.
While service jobs contribute slightly less to productivity than physical jobs, service jobs are still productive and that's what you're failing to understand.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
