The fallacy of the service economy: a materialist perspective

Abstract

Purpose

The purpose of this article, which is based in the tradition of critical theory, is to present a number of reasons for preserving a strong production economy given that the aim of the nation state is to work for improved competitive advantage.

Design/methodology/approach

The critical theory approach is used in this paper.

Findings

The paper is also an attempt to show why a majority of Western countries have defended the transformation from a predominant production economy to a service economy by explaining the shift as a result of class interests, using new class theory. It argues for why a materialist perspective in economic theory is relevant today.

Research limitations/implications

The Western world should focus more on the production economy and less on the service economy.

Originality/value

To the author's knowledge, no other paper has gathered as many arguments on the issue before.

Citation

Solberg Søilen, K. (2012), "The fallacy of the service economy: a materialist perspective", European Business Review, Vol. 24 No. 4, pp. 308-319. https://doi.org/10.1108/09555341211242123