es. Smiths distinction is very similar. It lies in the theory that productive labor stores its product in a tangible commodity with inherant market value. On the other hand, unproductive labor merely offers a service and does not result in the tangibility of any good. The distinction between productive and unproductive labor is of no relevance in society today. If it were than the vast majority of society would have to be considered unproductive because the industries of "artificers, manufactures and merchants," which Smith proclaimed to be the only productive laborers, are so heavily machinated that only a small protion of the population is needed to be employed in them. Todays affluent western societies are heavily dependent on services and certainly could not exist without them. But Smith did not deny the usefullness of the service sector he simply gave "productive labor" greater weight in factoring the economic growth of a society. Yet, by the modern meaning of the term "productive" Smiths Physiocratic distinction is in error. Value is the only factor that counts in modern economics and both kinds of labor produce valuable quantities....
