THE SERVICE ECONOMY: Growth in a New Direction

WHILE economists disagree on the immediate future course of U.S. business (see State of Business), they all agree on one basic premise: the U.S. economy has undergone such a profound change in recent years that the old tools to measure its size and health are no longer adequate. The biggest sector of the economy is no longer the production of such tangibles as appliances, cars, houses; it is the performance of services, ranging from medical checkups to European trips and cha-cha lessons. In this new economy, there are 33 million employed in performing services compared to only 27 million working...

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