The heart of Modern Wealth

There are people who complain about the declining share of gross domestic product that is contributed by manufacturing in the United States. This is because they are completely unfamiliar with the worldwide phenomenon. They do not understand that economic growth accompanies a declining percentage of manufacturing to a national economy.

The heart of wealth is not manufacturing; the heart of wealth is the knowledge applied to reduce the total percentage of manufacturing in the overall economy, and to increase the wealth of the masses through services. These services may be digital. They may be personal. But they are not based on manufacturing.

My friend Bill Myers has this phrase: “Sell electrons, not atoms.” It’s a great phrase. Don’t sell pieces of stuff; sell ideas, entertainment, efficiency, and anything that will reduce the cost of raw materials, the cost of capital, and the cost of output. Cut costs; cut prices; get rich.

This is why manufacturing will more and more be run by machines that are controlled by computer programs. This frees up mankind from the hard lifting of life.

Source: teapartyeconomist.com

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