• The rise of the service economy

    23 days ago - By FRED

    One constant throughout economic history is that, as an economy develops, its service sector keeps growing. The graph shows that this is certainly true for the United States. It divides nonfarm payrolls into three categories: government , goods-producing industries , and service-providing industries. Although government is roughly constant, services have far surpassed goods.
    Is this bad? Of course not. The standard of living has clearly improved since 1939, when the graph starts. Indeed, goods can now be produced with fewer people-thanks to technological progress and automation...and...
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