Podcast
Questions and Answers
What has significantly increased in the economy over the last 70 years?
What has significantly increased in the economy over the last 70 years?
Which of the following is NOT typically included in the definition of the service economy?
Which of the following is NOT typically included in the definition of the service economy?
How much of the global GDP is made up by the service sector today?
How much of the global GDP is made up by the service sector today?
In Canada, the employment ratio in the service sector and goods-producing sector changed from 1911 to 1987 in what way?
In Canada, the employment ratio in the service sector and goods-producing sector changed from 1911 to 1987 in what way?
Signup and view all the answers
Which sector was historically believed to be the most important for an economy?
Which sector was historically believed to be the most important for an economy?
Signup and view all the answers
What proportion of the Canadian workforce was employed in agriculture in 1867?
What proportion of the Canadian workforce was employed in agriculture in 1867?
Signup and view all the answers
What is one of the challenges of increasing productivity in the service sector?
What is one of the challenges of increasing productivity in the service sector?
Signup and view all the answers
What aspect of the economy did many people historically prioritize over services?
What aspect of the economy did many people historically prioritize over services?
Signup and view all the answers
What characterizes the income distribution pattern in service work within cities like Pittsburgh?
What characterizes the income distribution pattern in service work within cities like Pittsburgh?
Signup and view all the answers
Which sectors experienced significant growth in global cities during the 1980s?
Which sectors experienced significant growth in global cities during the 1980s?
Signup and view all the answers
What was the effect of advancements in communication technology during the 1980s on global cities?
What was the effect of advancements in communication technology during the 1980s on global cities?
Signup and view all the answers
How did globalization affect the economic orientation of global cities like New York and London?
How did globalization affect the economic orientation of global cities like New York and London?
Signup and view all the answers
What type of workforce became necessary in global cities as multinational corporations expanded?
What type of workforce became necessary in global cities as multinational corporations expanded?
Signup and view all the answers
What major economic transition began in the late 19th century in cities like Detroit and Pittsburgh?
What major economic transition began in the late 19th century in cities like Detroit and Pittsburgh?
Signup and view all the answers
What was a significant consequence of deindustrialization in Pittsburgh during the 1980s?
What was a significant consequence of deindustrialization in Pittsburgh during the 1980s?
Signup and view all the answers
What technological innovations contributed to the changes in trade described in the content?
What technological innovations contributed to the changes in trade described in the content?
Signup and view all the answers
How did the collapse of the auto industry impact Detroit's population?
How did the collapse of the auto industry impact Detroit's population?
Signup and view all the answers
What characterized the employment landscape in health care compared to steel manufacturing in Pittsburgh?
What characterized the employment landscape in health care compared to steel manufacturing in Pittsburgh?
Signup and view all the answers
Which of the following cities is noted as having a significant role in the rise of the service sector during the 1980s?
Which of the following cities is noted as having a significant role in the rise of the service sector during the 1980s?
Signup and view all the answers
What demographic shift occurred in Pittsburgh as the steel industry declined?
What demographic shift occurred in Pittsburgh as the steel industry declined?
Signup and view all the answers
What economic trend is described as the 'flip side of the rise of the service sector'?
What economic trend is described as the 'flip side of the rise of the service sector'?
Signup and view all the answers
What role did mechanization play in the transition from industrial to service economies?
What role did mechanization play in the transition from industrial to service economies?
Signup and view all the answers
Which of the following pairs illustrates an economic transformation in cities from the late 19th to early 21st century?
Which of the following pairs illustrates an economic transformation in cities from the late 19th to early 21st century?
Signup and view all the answers
What is a common feature of service-dominated economies as described in the content?
What is a common feature of service-dominated economies as described in the content?
Signup and view all the answers
What industry overtook the steel sector as the largest employer in Pittsburgh by 1980?
What industry overtook the steel sector as the largest employer in Pittsburgh by 1980?
Signup and view all the answers
What historical figure is significant to the narrative of Pittsburgh's steel industry?
What historical figure is significant to the narrative of Pittsburgh's steel industry?
Signup and view all the answers
What social issue is associated with the deindustrialization of cities such as Detroit?
What social issue is associated with the deindustrialization of cities such as Detroit?
Signup and view all the answers
What transportation advancement drastically changed the speed and efficiency of communication in trading?
What transportation advancement drastically changed the speed and efficiency of communication in trading?
Signup and view all the answers
Study Notes
Deindustrialization and the Service Economy
-
Service Economy Defined: A diverse sector encompassing various activities from fast food to complex medical procedures and financial consulting. It includes intangible services like education, healthcare, tourism, and finance, distinct from tangible goods.
-
GDP Composition: The service sector's proportion of a country's Gross Domestic Product (GDP) has significantly increased globally in the past few decades.
-
Global Trends:
-
The service sector accounts for roughly half of global employment and over two-thirds of global GDP.
-
Agricultural employment has decreased drastically in developed countries over the 20th century while service sector employment increased.
-
Historical Context:
-
Service sectors existed prior to industrialization, but were smaller components of pre-industrial economies.
-
Industrialization in the 19th and 20th centuries spurred a demand for support services (banking, insurance, legal counsel). This fueled the transition.
-
Deindustrialization, a shift away from manufacturing, occurred alongside and in tandem with the rise of the service market.
Deindustrialization
-
Definition: Deindustrialization is the decrease in the proportion of an economy's employment and production that is involved in manufacturing.
-
Causes:
-
Technological advancements (mechanization, mass production) increased manufacturing productivity, leading to labor displacement.
-
Increased demand and supply imbalances in manufacturing made jobs in manufacturing less desirable.
-
Examples:
-
Detroit: Auto industry's decline, from Detroit being a major global center for the auto industry resulting in a significant decline in population.
-
Pittsburgh: Steel industry's decline, with the city's population severely impacted by this change over time. The steel industry's decline resulted in job losses and an emphasis on healthcare and other services.
-
Social Consequences:
-
Deindustrialization often leads to increased unemployment, poverty, inequality, and social issues within communities.
-
Examples include the loss of manufacturing jobs in Detroit, resulting in a severe economic downturn.
-
Pittsburgh's steel industry decline had a comparable impact on job losses and significant economic and social impacts.
The Rise of Global Cities
-
Key Cities: New York, London, and Tokyo emerged as prominent global cities in the 1980s, focused on advanced services.
-
Causes:
-
Improved communication (phones, faxes, internet) facilitated the growth of globalized service sectors.
-
Multinational corporations' growing need for specialized services (law, finance).
-
Advanced services became more centralized due to the necessity for face-to-face interactions between leaders from various corporations and countries, especially as multinational corporations grew and expanded across countries.
-
Characteristics:
-
Specialized workforces in finance, law, and consulting.
-
The world's economy became increasingly complex and globalized meaning these cities were now connected and reliant on the global market.
-
Global cities became connected to one another resulting in shifts from national to global economies.
-
These cities required individuals to fulfill worker roles such as cleaning, cooking, and child care, which led to a surplus economy and often poorly paid work done primarily by women.
Service Sector Dynamics
-
Income Distribution: Service sector employment often results in a skewed distribution of income.
-
There is a high concentration of very high and very low wage workers, with fewer workers in the middle range of income.
-
Varied Job Characteristics: Service sector jobs can vary greatly in terms of pay, stability, and benefits. Many jobs are nonunion, part-time, and paid comparatively lower than industry jobs.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz explores the transformation of economies from industrialization to a service-oriented focus. It examines the rise of the service sector, its impact on GDP, and global employment trends, highlighting historical shifts from agriculture to services. Test your knowledge on the changing landscape of economic structures and their implications.
