Service economy

A service is a job or work done for someone else. All the service trades form a service economy.

Good examples are:

  • Government is perhaps the largest example.
  • Hospitals and the health services generally.
  • Banks and financial services.
  • Motor trade services. All services except actual products such as parts and petrol (which are obviously goods or products).
  • Painting a house as opposed to building it.

The old split between product and service is now often a service–product continuum.[1] Many products are being transformed into services.[2] An example is IBM, which made computers, now is mainly a consultancy for businesses which use computers. That has been so at least for the past 40 years.[3]

The person or company which gives the service will get something in return for the service, obviously. Who gives the service usually gets money in return. Who gives the service may get goods in return. Who gives the service can get another service in return. This is a type of trade.

ReferencesEdit

  1. Victor R., Fuchs 2011. Who shall live?: health, economics and social choice. ISBN 9789814365642
  2. Goods/service continuum.[1]
  3. Bauer, Roy A. and others. 1992. The Silverlake Project: transformation at IBM (AS/400). Oxford University Press.