A note on the goods/services dichotomy

This Note takes issue with the near universal acceptance of the bifurcation of goods and services, each as discrete entities, reinforced by the need to measure economic output. The streams of goods and services are absolutely interdependent, with increases and decreases in the demand for services resulting after time lags in corresponding changes in capital goods output and employment. Focusing on this interrelationship should help us to better understand the dynamics of advanced economies and the problems of developing economies.