ABSTRACT
Services are activities for which there is a demand and price: they are intangible goods usually "consumed" at the point of their production. In the National Accounts both types of remunerated work contribute to gross national product (GNP). It follows that statistically economic growth reflects equally an increase in goods production and in the provision of services. The real problem is neither the rising share of government in the national income nor its cost. The crux of the matter is progressive taxation: the rich pay more taxes than the poor while the advantages accruing to the poor from the services provided by the state are more directly visible. Politicians and high government officials are simply overwhelmed by the opinions of the social oligarchy and do not dare to swim against the stream of public opinion. The modern industrial society requires a growing number of collective services.
