Would producing a good be considered more valuable than providing a service to an economy as a whole?

Update:

@Eric- But could the service sector survive without a means of acquiring goods? For example, how could a retail store stock their shelves if their is nobody producing goods and selling to them.

So everybody knows this is a question that has seemed to become popular recently, and I am just looking for opinions.

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  • Anonymous
    10 years ago
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    Both goods and services are equally important but i feel that providing service to an economy is more valuable because without services the value of goods will not be high.For example providing warranty for a good.If a good does not have warranty no one would buy it.

  • 10 years ago

    1. It is an artificial distinction.

    When you drive, do you care whether you own the car or just have it on a long term lease? To what extent do you own the software on your computers and to what extent do you just have the right to use it in restricted ways?

    And it isn't just retail consumers. Most airlines lease their planes; most companies lease their offices; etc.

    2. The whole question of "value" is littered with traps. No one likes the idea of "value" meaning "what the market will pay at this instant", but no one has been able to come up with an alternative that is consistent and useful in economics, though many have tried.

    http://en.wikipedia.org/wiki/Value_(economics)

    3. Is labor a service or a good? I'd argue that labor is a service that a manufacturer can use to produce goods. Without that service, there are no goods. Does that mean that services are more important than goods?

    4. The modern economy is founded on credit - a service. Without credit, the economy would never have grown so fast, most people wouldn't have the goods or lifestyle they have, etc.

    etc.

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