The decline of manufacturing sector in U.S.A. has been compensated by Essay

The decline of manufacturing sector in U.S.A. has been compensated by a growing service sector - Essay Example United States has for more than three decades witnessed growth in its service sector and a converse trend in manufacturing. This has been the trend for many high income countries as they have been shifting reliance from manufacturing to service. This is a post-industrialization trend where people’s income continues to rise with less interest in investment in material processing The current trend has been more investment or shift to health care, education, insurance and others. It is important to mention that employees’ productivity grows slowly in the service sector than in the manufacturing the reason being low mechanization in service processes. Services therefore become more expensive which results in them contributing a higher portion of US GDP (Gallaher 49). This trend has also resulted to having higher employment in service sector than in the mechanized manufacturing sector. The service sector is now leading while manufacturing is declining with former compensatin g for the decline. The service sector capitalizes in production of intangible commodities in health, information and communication, education and others (Triplett and Bosworth 64). Globalization has been one of the key factors towards the shift from manufacturing to service. Manufacturing firms have been relocating to other countries mostly in the developing economies which either have more people in the low-income or middle-income bracket. Countries like China and India have for the last two decades been encouraging foreign investments through various incentives like tax holidays and low wages for workers. American government in turn is trying to develop policies that will see most of its citizens above the minimum wage bracket; a move that is driving industries to foreign countries. The service sector is labor intensive and it requires highly skilled personnel therefore raising the need to have quality and sustainable education. Also due to globalization many skilled immigrants ha ve come to the United States to seek jobs in the service sector resulting to high brain drain especially in the developing nations (Gallaher 130). Global trends also dictate firms to engage in more environmentally friendly activities and the service sector has come to solve this problem. The service sector engages in more human capital than natural. This has made United States to have heated debates regarding quality of education so as to have more skilled human capital (Gallaher 89). The general lack of undue intervention in the natural resources reduces environmental degradation which is more prone with manufacturing firms. Environmental consciousness has therefore caused investors to shift their investments to more environmentally friendly businesses. Statistics show that in the turn of the 20th century America’s manufacturing and agricultural sectors had taken more than 75 percent of the GDP while in the turn of the 21st century the service sector had more than 60 percent contribution (Triplett and Bosworth 106). This is a huge turn of events considering that it is a gap of just a century. It is within this century that America’s economy grew tremendously into the current post-industrialization era. The above statistics show that to a large extent the service sector is surely filling the gap left with the decline in the manufacturing sector. The world economy has in the last four decades experienced turbulence of booms and decline which have affected the two sectors differently. The manufacturing sector over this period has been heavily affected and shrunk as a result (AIER 2006). The recent economic crisis of 2008 heavily affected industries like motor vehicle manufacturers leading to closure of many plants, takeovers, bailout programs and many other negative occurrences. In the recovery trend the service sector has been seen to recover quickly than the manufacturing

The American Frontier Assignment Example | Topics and Well Written Essays - 750 words

The American Frontier - Assignment Example These settlers and the Native Americans were mythologized in terms of their cultures and economic activities. In this mythological era, the white settlers got two opportunities; to practice slavery and extend their ranches and farm lands. Most Southerners were whites who had settled earlier to cultivate land and mine precious metals for economic gains. Historical studies reveal that the Southerners created a myth which justified that the uncivilized black slaves were meant to labor for the white planters since the white communities catered for the needs of the so-called inferior beings. In addition, they claimed that both societies lived happily and in an orderly manner since everyone knew their social positions in the community. With the aid of this myth, the white settlers had the opportunity to exploit the cheap slave labour and exercise powers over the blacks (Slatta, 2010). Another prominent mythological belief is that the ranchers needed to secure large tracts of land in order to pursue their livelihood. The myth justified that the extensive tracts of land were to be made available for commercial farming for the ranchers. They claimed that the produce from the ranches supported them and the loyal black slaves, as well. Most arguments made by the mythologized settlers were based on the ideology that as far as they are benefiting in the New World, no law was to be made to remove such benefits. Some of the beliefs about ranching may include; ranchers would protect the land, livestock benefits the wildlife, public lands support the rancher, rangeland would stay healthy if were grazed, and more (Slatta, 2010). In other words, the ranchers didn’t consider the environmental impact of extending ranches such as imbalance of the ecosystems and climatic changes. Instead, they used that opportunity to enrich themselves with many herds of cattle at the expe nse of environment. As stated earlier, the closing of the American