Why Are Services Ignored (Or: The strange fixation with manufacturing)

[frederick0t6]

Whenever I read about Ontario's economic woes, there is constant discussion on the continuing collapse of the automotice / general manufacturing sector (though, it is occasionally pointed out that this trend started five or six years ago). The decline of manufacturing, in terms of the proportion of employment it accounts for, is constantly treated

Comments

[kattas]

I'm going to go out on a limb and say this probably has something to do with the attraction of foreign investment; service industries rely on people spending money on services, while said spending relies on people feeling confident enough in the economy that they can afford to spend their money on intangible things. So for a foreign investor, if you've got good manufacturing, people in the country are going to be prosperous enough to spend money on services, while if your entire economy is based on services, a recession turns into a downward spiral.

But I'm an uneducated (economically speaking) moron. Go ask Eva if you want a good (non-BS) answer.

[worldelf]

It's very, very simple