My original point was that we are not by-passing the industrial economy phase and going directly to a services economy. We are redefining the boundary between industrial companies and their supporting services organizations. The huge increase in productivity in agriculture over the past two centuries resulted in increased output and, since the peak in 1910, decreased employment. But many farming jobs are now in manufacturing at Deere. Exactly the same thing has happened in the industrial economy. The value of industrial output continues to grow even as direct employment declines from its peak in 1979. The employment picture is clouded by the fact that some jobs were eliminated by improved efficiency, and some were transfered to services companies. I’ve seen no analysis capable of isolating the two. The key is that these service jobs are still dependent on the industrial economy they support. In any service industry you need to ask the question “…in service to whom?” The expansion of the knowledge economy began and is still largely fueled by the needs of the industrial companies. This industrial investment has driven a global explosion of industrial productivity unlike anything we’ve ever seen.