Orientation of the economy towards services also makes economic value creation harder to measure.
Example: Make the tax code complicated and all of a sudden you have higher demand for accountants and a larger accounting industry. This growth in accounting is measured as economic output. But the value of this is really just mitigation to previous value destruction, rather than the creation of new value.
It's hard to know how much of the growth in service industries is true value creation versus rent-seeking.
Very true. Legal services for compliance? Make work to wade through bureaucratic red tape.
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