Services formation is becoming more important for communities, particularly since tradable goods production is not always a dominant factor for local economies. Unfortunately, services formation in general equilibrium is still dependent on the wealth of traditional production. In the future, services need to provide a direct source of wealth which also contributes to traditional production. New services formation is needed on monetary terms, instead of the fiscal terms which centralize services and often limit them to prosperous regions.
Government subsidies for services formation have proven increasingly difficult in recent decades. In many instances, these subsidies have reimbursed time based product which provides neither sufficient production or consumption options for the marketplace. Subsidies for healthcare in particular, have meant further distortions in the coordination of time aggregates than should have been the case.
As it becomes more difficult to provide services with existing governmental revenues, services formation is also emerging as a primary source of inequality. How so? Given the fact budgets can only go so far for still expanding services needs, a polarized income structure has been the response - even as tradables sectors have moved towards a less polarized workplace.
Present day services formation has contributed to the wage stickiness which affects monetary conditions. Wages in tradable sectors have been somewhat more flexible, given the fact that skills sets in these areas are more interchangeable. Whereas the sunk costs in time investments for knowledge based services, have detracted from wage flexibility in knowledge based services at administrative levels.
Knowledge based systems would seek greater flexibility, both in terms of skills capacity and knowledge use. Students would participate in services coordination patterns which would include monetary compensation from a young age. This "pay as you go" approach would apply both in terms of time use and monetary investments. Individuals with the most experience would provide starter mechanisms for the process, and make room for individualized instruction when others don't yet have the experience (or possibly the time) to provide sufficient instruction.
Even though time arbitrage would be compensated as a minimal (and equal) base, compensation accrues over the course of one's lifetime and is also integrated with local investment. Contrast this to normal employment scenarios, which cause problematic earnings gaps for both young adults and older citizens. Because compensated time value would be directly associated with local resource capacity, citizens of all ages would be able to participate in a diverse services environment.