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Services have become an increasingly important part of the US and the global economy

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Services have become an increasingly important part of the US and the global economy. The services that can be purchased today range from hotel accommodations to temporary workers in business to health care. It is not that any of these services is new or unique, but the choices that consumers have between providers of these services has increased substantially. As the 21st century begins, there is a service revolution.

Compare THIS SERVICE REVOLUTION with the INDUSTRIAL REVOLUTION OF A CENTURY AGO.

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STEP 1
The industrial revolution took place a hundred years ago because the European economy had become a global economy. The trade of Europe stretched to every part of the world except perhaps Antarctica.
On the other hand the current services revolution is taking place because of globalization and its related off shoring and outsourcing. What has happened in the developing countries is that high paying office jobs are being given to competent and less costly workers in South Asian Countries.

STEP 2
An explosion of population in Europe fueled the industrial revolution. The industrial revolution and the explosion in Europe went hand in hand. The increase in the population fueled the growth of industrialization and industrial production.
On the other hand the current services revolution is taking place because of increased competition among multinationals. For example, in the US foreign companies are offering services at much lower rates than local companies.

STEP 3
The industrial revolution of a century ago took place because the Europeans had a monopolistic control over the world economy and trade. Trade always favored the interest of the Europeans and made them wealthy.
The current services revolution has taken place because automation has arrived very quickly. Back room and office work is taken over by hardware and software that was not there ten years ago! Clerical, accounting and other staff positions are becoming redundant. There is automatic order taking, billing, receiving of payments and even security.

STEP 4
The industrial revolution of a century ago related to movement in the manufacturing industry away from a subsistence economy to a surplus economy. The labor produced more than he could consume. This supported the increased population growth.
The services revolution of now is supported by self-service. There is no need for petrol pump crew when the person can fill up the car by himself. The person does not need to use the postal system when he can send messages through an e-mail.